GM to buy Chrysler???

[marin8703]

Hey do any of you guys know anything about this. GM is in talks with DaimlerChrysler to buy the Chrysler Group. Would this be a good thing for GM since Chrysler is loosing-money? Still in the early stage of talks.

heres links to some articles:
http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2007-02-14T170917Z_01_N14342919_RTRIDST_0_DAIMLERCHRYSLER-GM-URGENT.XML&rpc=66&type=qcna

http://www.forbes.com/afxnewslimited/feeds/afx/2007/02/14/afx3426947.html

[K9sH3]

I thought MB had a stake in Chrys.

And GM is hurting, why would they buy a just as bad company?

UGH! What the hell is going on with American Automakers??

[Vettster]

Why?:lame:

[Desert Dan]

That would be interesting a GM Jeep?
Maybe we could get a Hemi in the H3's?


I think Jeep is probably the best selling prodcut the Chrysler has going now. Plus anything with a Hemi?

[usetosellhummer]

I own a hummer and a Dodge so I'm already there

[wilfred]

While I don't see the point of GM buying Chrysler, I do see more layoff if it does happen:(

[Steve - SanJose]

Lame idea, but could justify additional thousands of layoffs.

[K9sH3]

I still don't understand why a sitting duck wants to have a lame duck. And not just in the Automotive world.

[Boar-Ral]

I do not know much about economics, but if a company bought another company, even a faltering one, would it not eventually pay off in terms of customer base? That assumes that those who purchase from DaimlerChrysler would continue to purchase from the General Motors-DaimlerChrysler conglomerate. But if it did happen, and the combined corporation continued the trimming and pruning that they are already doing, might it not eventually result in a more profitable company?

Again, this is by far my area of expertise, but I have this feeling in the back of my head that even a floundering company can be a good acquisition. Sort of the buy low, sell high mentality. I know the lessen that was pounded into my head by an investment banker is not to purchase high-flying stocks because by that time, it is usually too late. Instead, watch for the floundering ones -- but be careful and do some research to get an idea of whether it has the possibility to get back on its feet -- and then when things get moving, you're riding the wave.

Just my two cents. I don't see it all as doom and gloom or a bad purchase decision, if it proceeds.

[K9sH3]

Yes, very good point Boar and like the others also have said, lots of layoffs.

[BlueHUMMERH2]

My scenario:
GM buys out Chrysler (which lost $1.3billion last year).
GM takes the vehicles and technology that currently work well for Chrysler, and gains technology from MB that was injected into Chrysler products.
GM shuts down Chrysler (or keeps just Chrysler, not Dodge or Jeep) and then gains their market share.

It might be a lot like when BMW bought LR, they took the HDC and 4 wheel drive technology, and then sold the group to Ford.

[DennisAJC]

My scenario:
GM buys out Chrysler (which lost $1.3billion last year).
GM takes the vehicles and technology that currently work well for Chrysler, and gains technology from MB that was injected into Chrysler products.
GM shuts down Chrysler (or keeps just Chrysler, not Dodge or Jeep) and then gains their market share.

It might be a lot like when BMW bought LR, they took the HDC and 4 wheel drive technology, and then sold the group to Ford.


GM should buy Chrysler and rebadge the Jeep Compass as trail rated.

That should bring some RAAAR.:giggling:

[Desert Dan]

GM should buy Jeep and Dodge Trucks and the Hemi name and technology and dump Chrysler.

Then maybe Jeep and Hummer owners could "all get along"

Jeep should concentrate on Jeeps like the JK, Grand Cherokee and Commander.

The JK is selling faster than Jeep can make them while the new Jeep Patriot and Compass are the uglist Jeeps evermade and are too car-like in my opinion.

[Boar-Ral]

My scenario:
GM buys out Chrysler (which lost $1.3billion last year).
GM takes the vehicles and technology that currently work well for Chrysler, and gains technology from MB that was injected into Chrysler products.
GM shuts down Chrysler (or keeps just Chrysler, not Dodge or Jeep) and then gains their market share.

It might be a lot like when BMW bought LR, they took the HDC and 4 wheel drive technology, and then sold the group to Ford.
I find that Buick and Chrysler are quite similar -- in general. The 300 is a lot less "grandma and grandpa" than most Buicks. But I still think they are quite similar. That would be one area where I could see combining their offerings. As much as I find Buicks for the older generation, I really miss the Park Avenue. It had a decent motor and I remember the horn sounding more like something from a train than from a car.

I think I would keep Jeep, but just to build the Wranglers. Maybe in a few years, combine them with Hummer, when the H4 is released.

Dodge... hmm. I still like some of their stuff. Very similar to Pontiac in a sense, in that "in your face" way. Maybe let Dodge do the stuff like the Caliber, Nitro, the small SUV/crossover stuff like that, and leave Pontiac to the cars.

That is just my take on things, but obviously if I knew what I was talking about, I'd be in a management position with one of these companies. As it stands, I'm just in IT and have a lot of time to think of these things. :)

[KenP]

GM could buy Chrysler and rename the Jeep, Hummer.:giggling:

[Boar-Ral]

GM could buy Chrysler and rename the Jeep, Hummer.:giggling:
Maybe just rename Jeep, HummerLite. Or HummerCity, HummerSoccerMom, etc.

[f5fstop]

GM buys Chrysler, which I highly doubt, they would combine Hummer and Jeep into one new divisions called Heeps or Hummeps.

Actually, Jeep is hurting right now too. The commander will be dropped, Cherokee sales have dropped by over 50%, and the Caliper is selling about as good as H1s. The Jeep dealer in town, is not selling as many 2007s as he thought they would. They are selling, but he has quite a few on his lot. (I have been looking at the 4-door Rubicon; out of curiosity of course.) I should also mention, that this is Chrylser territory. Auburn Hills, home of Chrysler is the next city over from Rochester Hills. It is also GM territory too.
The slow sales here might be due to the worries of the Chrylser employees who might not be working next week or next year.

In my opinion, they may have failed with the majority of the Jeep line, and being an old Jeeper myself, I was shocked to see 2-wheel drive Wranglers, but they sure do have a hit with the Rubicon 4-door.

[DRTYFN]

Maybe this is where the rumors are coming from.
GM/Chrysler to collaborate on large SUV?
The Chrysler Group and General Motors are in talks to jointly develop a large SUV like the Chevrolet Suburban ? something Chrysler doesn't have in its current lineup, according to a report by the Wall Street Jorunal.

Talks have been ongoing over the past six months, the report said. So far, no conclusion has been reached. The deal would save the struggling Chrysler Group a significant investment in developing its own large truck.

"Sometimes we can't do vehicles affordably so this would be a strategic partnership," a Chrysler source told the newspaper.

http://www.leftlanenews.com/2007/02/15/gm-chrysler-to-collaborate-on-large-suv/

[Boar-Ral]

GM buys Chrysler, which I highly doubt, they would combine Hummer and Jeep into one new divisions called Heeps or Hummeps.

Actually, Jeep is hurting right now too. The commander will be dropped, Cherokee sales have dropped by over 50%, and the Caliper is selling about as good as H1s. The Jeep dealer in town, is not selling as many 2007s as he thought they would. They are selling, but he has quite a few on his lot. (I have been looking at the 4-door Rubicon; out of curiosity of course.) I should also mention, that this is Chrylser territory. Auburn Hills, home of Chrysler is the next city over from Rochester Hills. It is also GM territory too.
The slow sales here might be due to the worries of the Chrylser employees who might not be working next week or next year.

In my opinion, they may have failed with the majority of the Jeep line, and being an old Jeeper myself, I was shocked to see 2-wheel drive Wranglers, but they sure do have a hit with the Rubicon 4-door.
I would be curious to see how the Caliber has sold over a geographic area. In Canada, the Caliber has been selling very well, if the number seen around here are any indication. I think the attraction is based upon a small, affordable vehicle, with available all-wheel drive. That is what has me hooked. Elsewhere, where AWD is not as desired, I could see its sales slipping in favour of other vehicles.

Regardless, I know that things are not good for any of the domestic automobile manufacturers. I just hope that things pick up fast. Until then, lots of keeping my fingers crossed.

[Steve - SanJose]

I've seen many of the Calibers around here, but most are rental cars.

[marin8703]

theres are source pointing to either a buy or just an alliance. So far no official word, but theres something going on there.

[Boar-Ral]

theres are source pointing to either a buy or just an alliance. So far no official word, but theres something going on there.
Reading more over the past couple days, it appears that they might be separate issues. The acquisition seems to involve only the Chrysler division, which has been hurting badly. The alliance seems to involve GM and Dodge specifically working together to build a large SUV similar to the Suburban. These rumours could be fueling each other, though.

I think that even just the purchase of Chrysler would be benefical, if for no other reason than the Chrysler 300.

[Desert Dan]

Cool a Power Wagon Wagon!

Then We might get a Hemi with our Hummers and Jeep with a Corvette ZO6 V8 engine!

[Steve - SanJose]

One thing is certain, Mercedes wants to spin off this turd.

[partsguy]

I maybe wrong but didn't this almost happen in the late 70's? The goverment stepped in and stopped it some sort of antitrust act was
involved.

[Steve - SanJose]

The current administration is likely to be very "hands off" regarding these dud car companies.

[Vettster]

I maybe wrong but didn't this almost happen in the late 70's? The goverment stepped in and stopped it some sort of antitrust act was
involved.

Nope. The goverment stepped in and bailed them out of bankruptcy. If I remember correctly.

[partsguy]

That was in the 80's Lee Iacoca Era.(I still can't spell!!)

[RubHer Yellow Ducky]

They "JUST" announced on the news the GM is buying the DeSoto and Imperial Division as of March 1st.

RYD