Quote:
Originally Posted by kanys
I just don't think that a merger with Chrysler will put GM in better situation than they are currently. And who cares if they combine to become bigger than toyota - the bigger they are the harder they fall...
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I'm not thinking about the size. I'm thinking about the products. If GM buys Chrysler, GM has absolute power over Chrysler brands, which means that GM can sell Prowlers, Commanders, 300Cs, Rams, Liberties, Wranglers, Challengers, Chargers, Avengers, and Thunderbirds. Kill all the other brands. GM can sell these for a small profit and convert a bunch of Chrysler dealers into GM dealers. Suddenly, GM has a bigger dealer network and can start making dealers competitive. For example, GM can say, "Sell at MSRP or we stop sending cars to you." It will increase sales. That's only one example. There are lots of reasons that GM control of Chrysler could be a good thing. GM could simple sell Chrysler assets—properties, individual brands—at a higher price. GM could butcher Chrysler and turn a decent profit.