Rumors of GM buying Chrysler group

[TigerMike]

Hmmm, well, wouldn't that certainly be an interesting combination, after all these years. There are rumors going around in the GM/Chrysler camps of GM acquiring Chrysler. Not sure how I feel about that. I'm thinking it may be good for Chrysler, but possibly bad for GM....who knows, anyway I guess if it happened it would be the "Big Two" then!

DETROIT (Dow Jones)--General Motors Corp. (GM) is in talks to acquire
struggling rival Chrysler Group, according to a report Friday in industry trade
publication Automotive News.

Chrysler parent DaimlerChrysler AG (DCX) said Wednesday that all options are
on the table as it seeks to restructure its U.S. unit. The statement heightened
speculation that Chrysler, which posted an operating loss of $1.5 billion in
2006, could be up for sale.

The Automotive News report Friday, citing unnamed sources in Germany and the
U.S., said that high-level talks are taking place between GM and
DaimlerChrysler executives. Although the two companies have discussed
cooperation on a large sport utility vehicle, the sources say a potential deal
would go well beyond a limited product development alliance, the report said.

GM spokesman Tony Cervone declined to comment on the report, as did a
DaimlerChrysler spokeswoman.

[Danase]

There are a million rumors going around Detroit right now. You can view most of them at Detroit Free Press - www.freep.com - Your local Detroit news source.
GM could buy them, GM might work with them on some SUV's and large trucks, Nissan/Renault might want to do something, they could partner up with a Chinese company.....and so on. There is for real a new rumor on the news around here on the hour.

[rydawg]

WOW! I did not here about that. I am in the used car industry and have been for the past 15 years off an on. All I can say is that it is VERY BAD for sales. I am getting completly out as of April and I am going to open a highline detail shop.

I think when Chrysler took on Mercedes Benz, they put themselves in a bind. I know that the Mercedes in Massachusetts near me just laid off some mechanics and every detailer they had. They only have a couple of cars out for the month and they are 80% under sales. The other bad part for Chrysler is that all there parts went up and almost double in price, when other manufacturers just cut the cost of parts to stay competitive with the local parts stores.

I think we are going to see a lot of change in the car industry in the next couple of years and I don't know if is for the good or the bad. All I know after 15 years of doing this I want out. I lost a lot of money last year and will not this year. All of my friends that own big used car dealerships are selling out also.

Sad sad world! But atleast I will be back to my happiness in detailing full time and not just on the side.

[GBSLambo]

With all the money GM has lost the last few years I doubt if they can afford to buy Chrylser.

[a.k.a. Patrick]

Originally Posted by GBSLambo

With all the money GM has lost the last few years I doubt if they can afford to buy Chrylser.

First they wanted Ford Motor Co.....If they buy Chrysler, there goes US innovation......

[Surfer]

I heard a rumor of a Ford/GM merger, but it's part true, think they agree to co-produce some stuff like trannies etc, not a merger like others were saying. I doubt GM would buy Chrysler, even though Chrysler had some more layoffs their sitting finacially better then Ford/GM though still not great so doubt GM would want something else that could drag on funds. The Daimler merger was good for Chrysler which really turned around, funny part was that merger was the start of Benz quality downfall, we had an 03' E55 that was a nightmare..but still fun when it was running right lol. The 1st gen ML trucks weren't worthy of the Kia nameplate. such shoddy build quality. Seems like their improving now, but Benz really had their name tarnished from the last 8-9 years since the merger.

American manufacturers need better vehicles, aka "fun" or what people want. They tease us with concepts that usually blow away the foreign makes, but then gives us bland versions when they finally come out. Besides the Viper, Vette and other cars that carved nice niches (Chrysler 300C is exactly what Americans wanted, good size, V8 rwd sedan that doesn't drive like a barge). Trucks are great but their losing that market both to foreign and the fact that interest in trucks is declining.

GM needs to bring over versions of the Holden's from Aussie land that don't look like over grown Cavaliers. And Ford needs to bring its FPV line over from Aussie Land as well. who here wouldn't want a sedan with a manual trans and version of the past Cobra R engine lol. You would think with us being their "home turff" we'd have first dibbs but we didn't get squat. Plus the models over there had interiors on par with foreign makes for years while we got plastic bland crap untill recently the last couple years.

Caddy has done a great job with its image and vehicles, styling is love it or hate it, but in the case of the CTS-V I absolutley love the car even compared to an e39 M5. The engine, trans, suspension etc, everything is in snyc and it drives great and is easily modifiable.

[SpoiledMan]

Originally Posted by Surfer

The 1st gen ML trucks weren't worthy of the Kia nameplate. such shoddy build quality. Seems like their improving now, but Benz really had their name tarnished from the last 8-9 years since the merger.

Don't blame that lame duck ML on Chrysler. The R/D and design was set in stone by the time the merger came along.

I really don't see this merger or even rumors of it as a good thing for either company.

[Danase]

Ford and GM designed a 6 speed transmission together. I am not sure what it is used in but I think the Ford Edge might be using it.

I don't really think the problem lays with bland cars. In my opinion, and that of many automotive journalists, Toyota has produced a lot of bland cars and look how they are. GM could want to buy Chrysler to stop from being called #2 shortly. I also don't really agree that Americans wanted the 300C. I see more of the V6 models driving around than I do anything else. I think what most Americans want is a well built reliable car. Which the Detroit 3 has been improving on greatly but given their recent past history it will take some time getting people back into their cars. Trucks are declining because of gas prices I believe. That is the main reason the Ram is not selling like it was.
These companies don't bring over their Aussie oversea versions for a lot of reasons. Not because they want to keep us from them but because they just won't sell that great. Look what our #1 selling car is...the Toyota Camry. People want a nice reliable commuter car. There is a reason why the Camaro and Trans Am left us a while back.

At least this is my take on things.

[velobard]

Originally Posted by Surfer

Besides the Viper, Vette and other cars that carved nice niches (Chrysler 300C is exactly what Americans wanted, good size, V8 rwd sedan that doesn't drive like a barge).

Did you ever see the Chrysler Hemi C concept car that was touring the shows as the successor to the 300M? Reports from journalists and insiders at Chrysler is that Mercedes killed the project because it upstaged their own coupes.



The current 300 has done very well for DC and made them tons of money, but it should have worn a different name and this should have been the new 300. It would still do well as a "gentleman's companion" to the upcoming Challenger.

[rydawg]

I know that all car manufactures are starting to hurt badly. Maybe cause the past 5 or 6 years they have sold so many cars and they are running for a long time now. Plus who wants a new car payment? The wholeasle end is up very high and that is what's keeping the big dealers in business. I know I go to the auctions all the time and the prices are very high. Also a BMW dealership here in town buys from one auction and sells to the other auction to keep the money coming in. They also buy there trades so cheap and have an auction once a month and they profit 1000-2000 on every vehicle wholesaled. I just don't get it. The trades is whats keeping most of these big dealers in business. As for the manufacturers, It's up in the air and the future will only tell.

I know for myself, my profit use to be $3000 and now is down to an average of $500 to $1000 max! Thanks god I am a pro detailer also and I make great money. I am gonna miss the easy money as it lasted for 15 years.

[TigerMike]

Originally Posted by Danase

I think what most Americans want is a well built reliable car.

Bingo, I agree. This is, IMO, a large part of why American companies have languished in recent years. Not because everyone thinks the Accord or Camry are hot to trot in styling and performance, but because they are solidly built and mostly worry free. Well built/reliable/functional is at the top of my list when considering a new auto, but I also want unique style and hopefully some bit of performance in there too. These were the big factors in my decision to buy a G35 several years ago. It has been a very reliable car, but to me at least, has nice stlye and performance aspects as well. A good blend of all the factors I desire. The car has been nearly bulletproof, being built in Japan.

The Americans could build cars with all the style they want...heck they could make them look like exotics (Lambos, Ferraris, etc) if they wanted, but people would still not buy them if they spent a large majority of the time in the shops or having constant problems/defects. I think that while style and performance is what really gets people's blood boiling about a particular make, at the end of the day none of that means anything if quality isn't there to back it up. Noone wants to have a car fall apart on them (inside and out) almost immediately after buying it.

I certainly don't know how they are going to do it, but the Americans need to figure out a way to equal or exceed the build quality of their foriegn peers, at a competitive price. Only then will they regain so much lost market share. There has to be a complete shift of perception among american consumers that our own products are as good as foreign, and again, I don't know how or if that will ever happen.

[paul34]

That's weird. How can GM, who is having trouble with its existing divisions (IMO too many) try to bring yet another division out of the dumps? Do they really have the cash and manpower to do that?

I recently read an article on TTAC, a little enlightening about GM.

Link: The Truth About Cars | General Motors Death Watch 109: Fingerspitzengefuhl

Also, TTAC is a great blog... they also do a good job of tracking all the Big 2.5 drama

Plus, a big problem with the domestics is that they have trouble competing on price because SO MUCH of a car's price goes to the unions. If the domestics could shed that bloodsucking leech, then they could realistically look at coming out of the mess a lot sooner.

Originally Posted by a.k.a. Patrick

First they wanted Ford Motor Co.....If they buy Chrysler, there goes US innovation......

Well, I mean, if GM gets Chrysler, then they would be American again... right now they're still half German, unless I misunderstand what you wrote, which is possible