Chrysler stops talks with Nissan/Renault in favor of GM
If Cerberus is ever going to shed itself of Chrysler, it looks like a deal will happen with soon-to-be former rival General Motors. Automotive News is reporting that no further talks have been scheduled between Nissan/Renault and the Auburn Hills-based automaker, as Cerberus has determined that the General can provide a sweeter deal that may also be better for the auto industry. It doesn't help that Nissan/Renault CEO Carlos Ghosn has decried that a deal between the two doesn't make sense during these shaky economic times.
We've never been at the table of a multi-billion dollar negotiation before, but we're pretty sure it's better to be sitting across the table from more than one company that wants what you've got. At this point, the once preposterous idea of GM merging with/buying/devouring Chrysler seems likely, and only a presidential election and a few billion dollars stand in the way of its completion.
[Source: Automotive News, sub. req'd]
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Reader Comments (Page 1 of 3)
Todd 2:06PM (11/03/2008)
R.I.P. Charger, Challenger and Viper
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Chris Hart 3:48PM (11/03/2008)
...and anything with SRT on it.
toronado455 5:17PM (11/03/2008)
GM to Chrysler:
"All of your minivans are belong to us."
Yaroukh 6:24PM (11/03/2008)
I don't believe GM would kill Challenger.
stealthebeatles 2:07PM (11/03/2008)
This idea seems so bad to me on so many levels. Jeep being owned by GM seems so wrong. And I would hate to see Dodge disappear.
The Nissan/Renault thing seems like it would have been more fitting.
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Gabagool 2:10PM (11/03/2008)
GM just reported a 45% decline in sales, this company can not manage its own finances.
I bet if Autoblog had a poll in here 80+% of people would say that GM-Chrysler deal is a bad idea.
rsfourever 2:40PM (11/03/2008)
"I bet if Autoblog had a poll in here 80+% of people would say that GM-Chrysler deal is a bad idea"
i bet 80% (or more) of the people here have no idea what they're talking about when it comes to mergers and acquisitions. there's a lot more to a merger than just the brand names of the company bought, and the vehicles they produce. trust me, i work in M&A...
now i'm not saying that GM-chrysler is a good idea, but i love that all these armchair QBs are trying to say that it's such a horrible idea, when they have no idea what goes on behind the scenes...
stealthebeatles 3:25PM (11/03/2008)
Well, I'm in school for business right now, and from what I can tell (admittedly not a lot), it seems like a merger between two companies so large, at such a time as this, is an awful idea. It would just add more bloat, while at the same time eliminating a lot of jobs.
Big Rocket 3:50PM (11/03/2008)
@rsfourever: Instead of just telling us 80% of us are wrong, how about telling us why we are wrong. Since you work in mergers and acquisitions, some of us might appreciate any insight you can shed. Pros and cons of a GM-Chrysler alliance, in layman's terms, could be enlightening.
Say What? 6:15PM (11/03/2008)
To Rsfourever:
" . . . I love that all these armchair QBs are trying to say that it's such a horrible idea, when they have no idea what goes on behind the scenes."
You are absolutely right when you say we, the general public, have little, if any, idea of what goes on behind the scenes of a business deal of this magnitude.
But I will tell you this, anytime one company wants to take over another, in this case an immediate competitor, because the first company had squandered it's resources and is need of the other's, in addition to the fact that tens of thousands of employees will lose their jobs as a result of it, and the taxpayer is being asked to help foot the bill ... yeah, most folks would consider that a bad idea.
A very bad idea.
tankd0g 2:12PM (11/03/2008)
This isn't just a bad idea it should be illegal. Hopefully the next administration will put a stop to this BS.
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geo.stewart 2:59PM (11/03/2008)
GM was an idiot for giving up controlling interest in GMAC. Now Cerebrus is strong arming a swap for the remainder of GMAC for Chrysler.
Seminole 2:12PM (11/03/2008)
This is like a really bad dream.
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Seminole 2:16PM (11/03/2008)
I want to add,
I think the reason Chrysler is going under is due to the fact they have essentially no international market. GM and Ford both have large overseas operations that help keep them afloat (barely). Chrysler is getting hammered by the condition of the US auto market and they have nothing to fall back on. Its a shame, but I guess everything is always survival of the fittest...
dim 2:19PM (11/03/2008)
i don't know if you did it on purpose or not but renault's logo doesn't look like that at all for decades now.
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AZZO45b 8:04PM (11/03/2008)
Artistic license by AB? Nissan's current circular logo & a vintage Renault logo that is the same shape.
Agreed it looks wrong
Swede 11:21AM (11/04/2008)
Tonight we're gonna party like it's 1925!
JZeke 2:19PM (11/03/2008)
Seriously? Doesn't make a lick of sense from an outsiders perspective. Whats really going on behind the scenes?
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letstakeawalk 2:35PM (11/03/2008)
Cerberus wants the rest of GMAC, so it can benefit from the financial-sector bailout.
GM wants Chrysler for its cash, and possibly its capacity. Mostly the cash though.
AZZO45b 8:01PM (11/03/2008)
Chrysler's "cash" is BORROWED... GM gets more debt. Others have this pinned correctly... Cerberus has GM over a barrel & this is a legal gang rape.
What is worse... American tax payers will then hand the rapist 10 BILLION to taunt the victim (massive layoffs).
Sorry if this seems graphic, but I know too many Chrysler people that are screwed if this event happens.