GM buying Chrysler? - PeachParts Mercedes-Benz Forum

whunter · #1 10-31-2008, 02:26 PM

Is this good or bad?

http://www.google.com/search?q=GM+buying+Chrysler&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1

http://www.google.com/search?q=GM+buying+Chrysler+impact+on+michigan&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1

raymr · #2 10-31-2008, 02:28 PM

It depends whether you like your cars GMified or Chryslerized.

chilcutt · #3 10-31-2008, 02:34 PM

Quote:

Originally Posted by whunter

Is this good or bad?

http://www.google.com/search?q=GM+buying+Chrysler&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1

http://www.google.com/search?q=GM+buying+Chrysler+impact+on+michigan&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1

Bad news

pj67coll · #4 10-31-2008, 02:50 PM

Quote:

Originally Posted by whunter

Is this good or bad?

http://www.google.com/search?q=GM+buying+Chrysler&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1

http://www.google.com/search?q=GM+buying+Chrysler+impact+on+michigan&rls=com.microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1

I think it's the height of idiocy. There are far too many manufacturers in the US these days. Chrysler is on it's last legs and about to lay off 25 percent of it's workforce. And not only does GM want to buy it they want the Governent to assist? Unbelievably stupid is what I think.

- Peter.

SwampYankee · #5 10-31-2008, 03:07 PM

It's hard to find the positives in the move.

jcyuhn · #6 10-31-2008, 03:10 PM

GM doesn't want the cars or the maufacturing capacity, they want the cash. Chrysler has $11Billion in cash, which GM desperately needs to fund restructuring and get through the current difficult patch. As for the cars, I bet GM keeps the minivans and a few Jeeps; everything else gets terminated. I've read the Dodge pickup line could probably be sold to a willing buyer, dunno about that one.

In a way, it's brilliant. Take the money and take all the capcity off the market, diving sales and utilization of GMs other products/factories upward. How many more GM pickups would be sold if there was no Dodge Ram?

- JimY

pj67coll · #7 10-31-2008, 03:15 PM

Quote:

Originally Posted by jcyuhn

GM doesn't want the cars or the maufacturing capacity, they want the cash. Chrysler has $11Billion in cash, which GM desperately needs to fund restructuring and get through the current difficult patch. As for the cars, I bet GM keeps the minivans and a few Jeeps; everything else gets terminated. I've read the Dodge pickup line could probably be sold to a willing buyer, dunno about that one.

In a way, it's brilliant. Take the money and take all the capcity off the market, diving sales and utilization of GMs other products/factories upward. How many more GM pickups would be sold if there was no Dodge Ram?

- JimY

Ok. I guess I was assuming they'd try to merge the product lines but if they just want to can it and pick over the pieces that'd be fine I suppose. If Chrsler are doing so poorly though how do they have 11BN in cash stashed away. I'm not understanding that. But then I guess I'm not a business man.

- Peter.

DeliveryValve · #8 10-31-2008, 03:21 PM

I was listening to NPR this morning and they stated to make the merger work, Chrysler would have to slash 16 models and layoff more then 40,000 workers. Both companies will have to close plants and their 22,000 combined dealership network will greatly disappear or suffer.

They also stated if Chrysler goes into bankruptcy, the whole company will go will go away fast and economically it will be a worst scenario for the country.

SwampYankee · #9 10-31-2008, 03:23 PM

Quote:

Originally Posted by jcyuhn

GM doesn't want the cars or the maufacturing capacity, they want the cash. Chrysler has $11Billion in cash, which GM desperately needs to fund restructuring and get through the current difficult patch. As for the cars, I bet GM keeps the minivans and a few Jeeps; everything else gets terminated. I've read the Dodge pickup line could probably be sold to a willing buyer, dunno about that one.

In a way, it's brilliant. Take the money and take all the capcity off the market, diving sales and utilization of GMs other products/factories upward. How many more GM pickups would be sold if there was no Dodge Ram?

- JimY

I notice that Sterling (trucks, was part of Ford, now part of Daimler. Was part of Daimler?) Bullet line, which is their medium-duty step up from a one ton pickup line, is now a Dodge-based truck instead of the Ford-based one that it started out as. All kinds of speculation floating around.

POS · #10 10-31-2008, 03:28 PM

I would bet it doesn't happen.

LUVMBDiesels · #11 10-31-2008, 03:49 PM

Quote:

Originally Posted by jcyuhn

GM doesn't want the cars or the maufacturing capacity, they want the cash. Chrysler has $11Billion in cash, which GM desperately needs to fund restructuring and get through the current difficult patch. As for the cars, I bet GM keeps the minivans and a few Jeeps; everything else gets terminated. I've read the Dodge pickup line could probably be sold to a willing buyer, dunno about that one.

In a way, it's brilliant. Take the money and take all the capcity off the market, diving sales and utilization of GMs other products/factories upward. How many more GM pickups would be sold if there was no Dodge Ram?

- JimY

GM will probably do this

1) Keep Jeep (the only good part of Chrysler)
2) Drop Hummer
3) Dump Chrysler cars
4) Re-badge the minivans as Chevys
5) Keep most of Chrysler's design staff and fire most of the GM staff
6) Sell the Dodge truck line to Honda or Kia or Nissan
7) Drop Pontiac
8) Drop Buick
9) Drop Saturn
10) Cherry pick the most modern factories and close the rest. Chrysler just opened some really modern plants in Mexico and Brazil...
11) Bring back Opel
12) Bring in Holden and Vauxhall cars
13)Close down most of GM's US operations and move the HQ to Shanghai

Hatterasguy · #12 10-31-2008, 03:50 PM

We just gave these morons $25B to save jobs, and they go and lay off tens of thousands anyway.

Here is a crazy idea, lets stop giving them money.

DeliveryValve · #13 10-31-2008, 03:59 PM

Quote:

Originally Posted by LUVMBDiesels

....
5) Keep most of Chrysler's design staff and fire most of the GM staff...

Why do they want to do that. You hear no future innovation from Chrysler. i.e. hybrids, electric cars, and hydrogen cars.

jcyuhn · #14 10-31-2008, 04:23 PM

Quote:

Originally Posted by pj67coll

Ok. I guess I was assuming they'd try to merge the product lines but if they just want to can it and pick over the pieces that'd be fine I suppose. If Chrsler are doing so poorly though how do they have 11BN in cash stashed away. I'm not understanding that. But then I guess I'm not a business man.

- Peter.

These are big companies, a few billion dollars in cash is what it takes to keep them running. For example, GM currently has about $20billion available. However, $12b-$15b is the minimum level required to keep GM operating. Without that much cash on hand, they cannot make payroll, pay suppliers on time, etc. - they become insolvent. Adding Chryslers stash to the pile greatly increases the distance to insolvency.

As for how Chrysler acquired that cash. I recall that both Cerberus and Daimler put cash into Chrysler when it was sold. I presume current management simply hasn't spent it all yet.

- JimY