GM and Chrysler to merge? - Page 6

shank0668 · 10-20-2008, 04:09 PM

ok it was in the paper gm, if they buy chrylser, will only keep jeep and minivans and end dodge!

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.

Design1stCode2nd · 10-21-2008, 12:40 PM

I’ve been following the Big 3 financial saga for a couple of years and I think we’ll know something within the month on how all of this goes down. My guess is I see the following:

Jeep going to Renault – Carlos has been sniffing around that tree for a while

GM getting the mini-van platform and a couple of other bits in a trade for the rest of GMAC and access to the 11billion Chrysler cash reserve.

This allows GM to stick it out until the Federal bailout hits and allows them to bargain for a bigger piece of the pie. They can also ask for more, which they will. Now the government can’t let them fail as it would be too detrimental to and already damaged economy.

Also expect to see tons of overlap cut as in jobs and plants closed with perhaps some sold to Fiat/Alfa Romeo for their return to the US market.

Cerebus gets the rest of GMAC which is all they wanted anyway (they never planned on running Chrysler long term).

I remember hearing a Dodge dealer justifying the markup on a Challenger SE saying it “Will be a collectible” and thinking he was plum crazy. Who knew he was right after all.

Muscle Master · 10-21-2008, 04:53 PM

What if Chrysler took over GM?....

Sizzox · 10-21-2008, 04:54 PM

Quote:

Originally Posted by Muscle Master

What if Chrysler took over GM?....

You had to feed the fire didnt ya.

Muscle Master · 10-21-2008, 04:56 PM

Quote:

Originally Posted by Sizzox

You had to feed the fire didnt ya.

Seriously what if by ( by the divine power of god) Chrysler took over GM as I somewhat grew up in the corporate world Its eat or be eatin

Sizzox · 10-21-2008, 05:00 PM

Quote:

Originally Posted by Muscle Master

Seriously what if by ( by the divine power of god) Chrysler took over GM as I somewhat grew up in the corporate world Its eat or be eatin

Well I dont know very mutch about this merger but is GM taking over chrysler or are they just joining together and like sharing employees and just pick and choice what line is staying or is it all up to the general? And i dont believe that chyrlser is big enough to take over gm im not to sure about that and havent done any reasearch in this so someone correct me if im wrong and i have no idea what would happen if chrylser did take over gm.

*DGthe3* · 10-21-2008, 05:01 PM

Quote:

Originally Posted by Muscle Master

What if Chrysler took over GM?....

Well. By Chrysler, do you mean Cerberus Holdings who want out of the automotive business?

patriotpa · 10-21-2008, 05:07 PM

If Chrysler took over GM, I guess I'd have to buy German or British.

swifttal · 10-21-2008, 09:41 PM

Quote:

Originally Posted by Muscle Master

What if Chrysler took over GM?....

Then both companies would go bankrupt... here's a better one - what if Chrysler manages a way to stay in business

camaro5 · 10-21-2008, 09:58 PM

General Motors and Cerberus reportedly want to act as quickly as possible if they are going to make a move on Chrysler. It seems that the two bargainers would like to come to a decision before the upcoming Presidential elections, as they believe they may get more promises from either candidate before the actual vote takes place. A potential problem exists though, as General Motors is finding it tough to come up with the cash needed to make a deal happen and banks aren't about the lend it to them. An alternative option that's being considered is getting government backing for the deal.

Though it sounded hard to believe when we first heard the GM/Chrysler merger rumors, it truly appears that these talks are taking place at a very high level and the deal could indeed be on its way too. We'll just need to pay close attention in the next few weeks to the reactions from the Feds, the UAW and the thousands of workers that would inevitably be affected by the deal. Stay tuned.

http://www.autoblog.com/2008/10/21/g...-to-get-the-c/

Design1stCode2nd · 10-22-2008, 09:56 AM

Seriously MM if you are interested in a Challenger I'd get one soon.

10-21-2008, 09:58 PM	#81
camaro5 Drives: X-15 Velocipede Join Date: Mar 2008 Location: SW Florida Posts: 4,630	GM wants Chrysler deal done soon, might not be able to get the cash General Motors and Cerberus reportedly want to act as quickly as possible if they are going to make a move on Chrysler. It seems that the two bargainers would like to come to a decision before the upcoming Presidential elections, as they believe they may get more promises from either candidate before the actual vote takes place. A potential problem exists though, as General Motors is finding it tough to come up with the cash needed to make a deal happen and banks aren't about the lend it to them. An alternative option that's being considered is getting government backing for the deal. Though it sounded hard to believe when we first heard the GM/Chrysler merger rumors, it truly appears that these talks are taking place at a very high level and the deal could indeed be on its way too. We'll just need to pay close attention in the next few weeks to the reactions from the Feds, the UAW and the thousands of workers that would inevitably be affected by the deal. Stay tuned. http://www.autoblog.com/2008/10/21/g...-to-get-the-c/

10-20-2008, 04:09 PM	#71
shank0668 Drives: '14 LML/'06 LJ/'76 Trans Am Join Date: Feb 2008 Location: Ohio Posts: 8,438 View My Garage	ok it was in the paper gm, if they buy chrylser, will only keep jeep and minivans and end dodge!

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.

10-21-2008, 12:40 PM	#73
Design1stCode2nd Drives: four wheels Join Date: Oct 2007 Location: usa Posts: 585	I’ve been following the Big 3 financial saga for a couple of years and I think we’ll know something within the month on how all of this goes down. My guess is I see the following: Jeep going to Renault – Carlos has been sniffing around that tree for a while GM getting the mini-van platform and a couple of other bits in a trade for the rest of GMAC and access to the 11billion Chrysler cash reserve. This allows GM to stick it out until the Federal bailout hits and allows them to bargain for a bigger piece of the pie. They can also ask for more, which they will. Now the government can’t let them fail as it would be too detrimental to and already damaged economy. Also expect to see tons of overlap cut as in jobs and plants closed with perhaps some sold to Fiat/Alfa Romeo for their return to the US market. Cerebus gets the rest of GMAC which is all they wanted anyway (they never planned on running Chrysler long term). I remember hearing a Dodge dealer justifying the markup on a Challenger SE saying it “Will be a collectible” and thinking he was plum crazy. Who knew he was right after all.

10-21-2008, 05:07 PM	#79
patriotpa Account Suspended Drives: 02 Silverado, 09 Vue, 10 1SS Join Date: Aug 2008 Location: Tired of apologizing when we should be kickin' butt! Posts: 1,962 View My Garage	If Chrysler took over GM, I guess I'd have to buy German or British.

10-22-2008, 09:56 AM	#82
Design1stCode2nd Drives: four wheels Join Date: Oct 2007 Location: usa Posts: 585	Seriously MM if you are interested in a Challenger I'd get one soon.