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JusticePete · 10-20-2008, 04:42 PM

The mini-vans and Jeep have value to GM. The rest of Chrysler will be liquidated for cash. This move gives GM time to reap the benefits of the labor agreement they reached months ago but don't kick in until 2010. The harsh reality is that with the growth of global auto manufacturing there is too much production capacity. Pulling Chrysler apart take roughly 3,000,000 units out of the North American mix. GM will reap a million or more units out of this while the industry absorbs another million and the third million just evaporate.

With the minivan and a manufacturing agreement with VW GM will benefit. Jeep and Hummer may be a profitable division and certainly would be a a saleable commodity. The LX and Challenger will soldier on for a few years and give GM a fleet size vehicle for taxi and police service. Most important is GM will have 10 billion or more in cash when cash is king.

The Chrysler dealer network will take a beating. There are about 3,000. GM has over 6,000 dealers. The merged company should have 4,500 dealers. There will be pain as they wither them away because of various laws and regulations preventing cancellation. Then there are all the good people who work at the dealerships that will be out of work. The even harsher reality is that even more people will lose their jobs, more will lose benefits and those that remain will be under even more severe pressure to accept further wage cuts as they are released to reduce GM operating costs.

This is a grim picture that will not get better until the construction industry goes back to work when the surplus of housing and commercial space is absorbed. It is going to be a challenging 2009 for the auto industry and every other industry probably into 2010. Out of this pain there has to be a rebirth of GM to make it worth while. Maybe it starts with the GM takeover of Chrysler.

10-20-2008, 04:42 PM	#72
JusticePete Drives: Camaro Justice Join Date: Jun 2007 Location: Virginia Posts: 20,171	The mini-vans and Jeep have value to GM. The rest of Chrysler will be liquidated for cash. This move gives GM time to reap the benefits of the labor agreement they reached months ago but don't kick in until 2010. The harsh reality is that with the growth of global auto manufacturing there is too much production capacity. Pulling Chrysler apart take roughly 3,000,000 units out of the North American mix. GM will reap a million or more units out of this while the industry absorbs another million and the third million just evaporate. With the minivan and a manufacturing agreement with VW GM will benefit. Jeep and Hummer may be a profitable division and certainly would be a a saleable commodity. The LX and Challenger will soldier on for a few years and give GM a fleet size vehicle for taxi and police service. Most important is GM will have 10 billion or more in cash when cash is king. The Chrysler dealer network will take a beating. There are about 3,000. GM has over 6,000 dealers. The merged company should have 4,500 dealers. There will be pain as they wither them away because of various laws and regulations preventing cancellation. Then there are all the good people who work at the dealerships that will be out of work. The even harsher reality is that even more people will lose their jobs, more will lose benefits and those that remain will be under even more severe pressure to accept further wage cuts as they are released to reduce GM operating costs. This is a grim picture that will not get better until the construction industry goes back to work when the surplus of housing and commercial space is absorbed. It is going to be a challenging 2009 for the auto industry and every other industry probably into 2010. Out of this pain there has to be a rebirth of GM to make it worth while. Maybe it starts with the GM takeover of Chrysler.