GM/Chrysler Merger

[tom406]

I still don't understand how this makes any sense, particularly for GM. What does Chrysler have, besides minivans and Jeeps, that GM doesn't? They both have too many factories and too many dealerships.

I hope this isn't just Studebaker buying Packard, finding a companion to go down with.

[L78racer]

They can get out of the RENCEN in Detroit. They can get out of the Tech Center in Warren (50 year old buildings). Consolidate it all into the newer Auburn Hills location. They drop all of Chrysler's product except the van and Jeep (both maybes). They have already postponed or axed any new developement on any new engines in particular their new small car and its new engine. They would like Toyota to join in too. They can supply the small car product. It can all be built on Chrysler's assembly lines. JMO

[rpoz11]

So let's say they merge, a BIG IF!, acquire the branding for the Chrysler products people want and diversify the comapny into 3 parts.

Let's say they keep the Cadillac & Chevolets as the models of performance and hi end runs and add the challenger and more to that line.

Streamline ALL new economy, Hybrid, fuel economy, and low end entry level cars on the newer assembly lines from Chrysler giving them a way to complete and deliver immediately.

Have all of the truck lines in the GMC line.

Im not at GM but I am just thinking out loud that GM could use the older lines for the slower selling, hi end, and performance cars, and retool as needed once the faster new assembly lines pull them out of the hole they are in.

So many models to me are unecessary and could be axed to keep just what is needed.

I continually revert back to the 50's and 60's and wonder why GM doesnt simplify things and use 3 engine types for a multitude of models. That could help keep costs predictable without having some many different engine developements.

[Keith Tedford]

A merger is more likely, because neither has the money to buy the other. With a lot of overlapping of jobs, such as engineering as a example, they could eliminate a lot of people. Same with factories and offices. Much of this real estate could be sold off to raise some badly needed cash. They see more angles that we do.

[JRSully]

ESPN was reporting that if the big 3 take gov't money, that could temporarily spell the end of thier participation in Nascar, it's a dying sport in my eyes anyway.

[Keith Tedford]

I think that NASCAR and the big three have already been talking, based on what I heard on TV last night. Apparently NASCAR gives them their best exposure to the public compared to any other form of advertising. There may be cutbacks but I think they will be there is some form.

[Stefano]

We should hear an announcement anytime now.

[rubbinisracing]

[ QUOTE ]
I still don't understand how this makes any sense, particularly for GM. What does Chrysler have, besides minivans and Jeeps, that GM doesn't?

[/ QUOTE ]

11 Billion Dollars in cash on hand!

I beleive GM has about 10 Billion on hand and this merger may help them last long enough for a turn around to take effect. In the end the government would rather bailout just 2 automakers than 3. GM & Ford will definitely get a bailout as both are too important to the economy, consumer confidence and strategic manufacturing capacity to let fail.

[JRSully]

It's all about the daily cash burn and jobs. Yuo have the new factories in the south, non union, that are operating skinned to the bone, the big 3 have to figure out a way to fund the heavy pension and health care issues due to the terms of the last bloated UAW contract, once that is out of the way, they may be able to go forward with a similar setup the south is using, assuming the industry as a whole gets better. My .02

[MosportGreen66]

How long can the big three operate in the red? Its already been years...