What if GM were to buy Chrysler?

[jamz]

If you haven't been following the news or know about it, GM is in exploratory talks with Chrysler to possibly buy it. If this were to happen I see a few potential issues:

1. Managing all the brands - clearly, GM would need to consolidate some of them.

2. Buying out the dealers - Some Chevy dealerships have a Chrysler dealership in them. They would all need to be merged, but the dealerships would have to be bought out.

You can read some articles about this on-line but GMPT wants to know what you think.

Honestly, do you think GM could actually buy Chrsyler, manage it, and keep two brands as one afloat?

Voice your thoughts, let us know, we want to hear from you!

[jamz]

I'm all about GM growing and expanding and I think the Chrysler line would add some value to GM. But I am concerned with the management of all these brands and the debts of Chrysler. It would be marriage that would bring along additional debt I would imagine .. can GM handle that?

[StriperSS]

It was interesting that when this was first announced, Chryslers stock rose a couple of dollars, and GM's declined a little.
The whole US car industry is in crisis, and it's conceivable that in 10 years, it will end up like the UK, where every car manufacturer is owned by offshore companies.

[Vimjah]

While GM is buying Chrysler, why not just put Bob Lutz incharge again and let him run the entire thing into the ground. I don't think anyone has really thought about why Toyota didn't even think about trying a move like this. GM doesn't need 11 brands and all the dealerships that go with it. How about GM takes a good look at Toyota and start using leaner manufacturing procedures? Optimize JIT delivery to reduce buffers and large inventorys. With this acqusition GM will have to pay out billions in lay-off costs due to plant closures and other cutbacks.

What is more realistic is platform sharing and the sharing of other parts such as engines. This would reduce R & D costs and make more sence in that one common platform could be used to produce both a GM and Chrysler vehicle. For example, the 2011 Silverado and the Dodge Ram could have a Hemi coupled with a GM Transmission, GM Brake setup, and Chrysler PCM. The outside would be a noticible difference because the majority of what matters is what the customer sees. (Look at Kia's copy and improve method of design where there are features of the most popular vehicles in each class are transformed and placed into a Kia produce while the engine and not visible parts havn't changed for many years.)

In short, no freekin way it's gunna happen. It would litterally bankrupt both companies within a few years. Not to mention that the 2011 Vipette would surely bomb. lol

[Shadyman]

Ugh. GM needs to work on its core problems before getting any more tacked on. GM + Chrysler = Bad news.

[Spike]

I vote no and I'm sure GM execs are smart enough too as well. If GM were to buy Chrysler they would most likely keep the minivans and Jeep products while the rest go in the trash since they would compete with mainstay GM brands. Jeep would be merged in with the Hummer brand obviously and the minivans would probably go under Chevy, Buick and Saturn names. I wouldn't be suprised if Chrysler gets bought by one of the Chinese auto manufacturers trying to get into the US market.

[ROKTMAN]

I think that the aquisition is highly unlikely to proceed past the talking stage.GM is saddled with too much long term debt and low on surplus cash to make this a viable option.It would be interesting to see what would transpire out of the merger but we will probably never see it.

[jamz]

I doubt it would happen as well .. all good points and views posted for sure.

[nukkinfuttz]

Oil production has peaked. that means, from here on out, no matter how much energy we put into getting oil out of the ground, production will fall. this merger proposal is yet another manifestation of corporate canabalism. whos gonna be the last remaining?
www.lifeaftertheoilcrash.net

[darkfox]

common, this is a rumor... gm isn't going to buy anything...

and that peak oil crap is just a theory. it is possible we haven't even reached the peak production.

[Howard Holland]

What a joke!!!Our Americn companys need to go back to square one,

Don't put out all these different styles that no one wants!!

Go back to the BASIC models,They don't need Fifty of the same kind.


Were board with what there doing!!! They all look the SAME and brake

down at the same time.BUILD something worth having!!!!!!

Howard

[Vimjah]

Originally Posted by nukkinfuttz

Oil production has peaked. that means, from here on out, no matter how much energy we put into getting oil out of the ground, production will fall. this merger proposal is yet another manifestation of corporate canabalism. whos gonna be the last remaining?
www.lifeaftertheoilcrash.net

Off topic and I don't buy it. You can make stats show anything you want by doing the right calculations. The largest oil deposit in the world has barely been touched due to how expensive it is to refine oil trapped within sand.

Also, production fall isn't something I would worry about, it's increased demand that would worry me. Even if production stays stable and demand increases then price will increase until demand is lowered or production increased. Can you honestly think that multi-billion dollar oil companies will say "we don't feel like making more money as last year"? They are in it to make money and will continue to be as long as they can.

Originally Posted by Howard Holland

What a joke!!!Our Americn companys need to go back to square one,

Don't put out all these different styles that no one wants!!

Go back to the BASIC models,They don't need Fifty of the same kind.


Were board with what there doing!!! They all look the SAME and brake

down at the same time.BUILD something worth having!!!!!!

Howard

The simple fact is that the multiple variations of each type of vehicle allow customers a limited form of mass customization. Say two people want the exact same car, same colour, same engine, but one doesn't want power door locks. Is the manufacturer going to say "sorry! you have to get power door locks on every car that colour?" Going back to square one pretty much means "you can get it in any colour you want as long as it's black."

As for "all looking the same" that's because they use five to seven different platforms to build twenty to thirty different models, all using some of the same parts. It's cost effective, allows shorter lead time and means that you are not paying for something that had many specific parts made just for that car (i.e. Koenigsegg CCX that costs a fortune will have the majority of the parts on that car produced only for that car.)

As for your comment on how they "all break down at the same time." They still want to make money on the after sales service and parts. The average automaker only makes $1700 on each unit (5.6% profit margin on a $30,000 vehicle.) The majority of their profit comes in replacement parts and service. So yes, if your sick of them "all looking the same and breaking down at the same time" I suggest you buy a Koenigsegg. At least they will fly a Tech out to you when it breaks down. :)

[nukkinfuttz]

yes, sand oil. with our conventional oil, you put 1 unit of energy in, you return 30 units of energy. with the sand oil thats so plentyful, you put 1 unit in and get back 5 units. its not as profitable to do that. either way, your right, the planet will never run out of oil. but it will be priced so high only very rich people and the military will have access to it. you and me will be riding bicycles.

it also really doesnt matter if you buy it. Many other countrys of the world have openly acknowleged this to the people. but we here in the states get a more sanitiesed news release. our govt instead is suggestion that we begin reducing dependance on foriegn oil and reduceing our greenhouse gas emmisions. that way, when the oil crisis hits, it will be in the name of meeting the above quotas. plus our govt cant openly say that oil is gone, or that would prove without a question why we are in iraq. which is not the reason that was sold to us. thats why no matter what the people vote, or polls show, or what the senate does, we will not pull our troops out of iraq. our leader feels we need access to the last bit of oil at any expence. thats what tragic. if fact if you still have trouble thinking that your govt doesnt have your best interest in mind... read this Govt paper. these people wrote this before they came into power, and look, its a road map to what has happened, and what will be happening. they spelled it all out. http://www.newamericancentury.org/Re...asDefenses.pdf
you can choose to look the other way, but here it is.

the most distubing line of this document that was written in 2000, can be found on page 51, first paragraph. " Further, the process of transfomation, even if it brings revolutinary change, is likely to be a long one, absent some catastophic and catalyzing event- like a new Pearl Harbor."
what did bush say one the day of Sept. 11??? "today, we had a new Pearl Harbor."
look at the last page of the document. look at the names. now look who is in the white house now.
and of course, if you havent seen Loose Change, thats a good one. http://video.google.com/videoplay?do...20724339766288

[Sublime22]

I am a GM fanatic, I just bought my GTP two weeks ago, I have everything a Grand AM, Grand Prix, now another Grand Prix, before a saturn, a little mistake in my path, but hey its a GM. Chrysler, yes they make some horsepower, but that is about it, working in the rental car industry a few years back, I think any Chrysler product cannot even stand up to a ford product let alone, GM, however GM could make the product better, but everyone knows american car companies are in trouble, and buying the worst of them all in chrysler is a huge mistake. it would cost way more money in RandD to make the cars reliable, in the motor department, as well as upgrade the amentaties the cars come with, and with I think if GM buys chrysler, GM could have serious financial problems, and hey if they were any good, why is Mercedes considering selling? This should tell us something. If GM wants to buy out a competitor, go after Nissan, they are the weakest of the Japanese companies, and maybe their cars would tell GM something about Japanese reliability, on top of that Nissan has the closest engines power wise to that of american, in fact their v6's rival that of most GM v8's. Just my two cents worth.

[darkfox]

Originally Posted by nukkinfuttz

yes, sand oil. with our conventional oil, you put 1 unit of energy in, you return 30 units of energy. with the sand oil thats so plentyful, you put 1 unit in and get back 5 units. its not as profitable to do that. either way, your right, the planet will never run out of oil. but it will be priced so high only very rich people and the military will have access to it. you and me will be riding bicycles.

maybe that's the way it should be. walking, riding a bike, and using public provided mass transit. they would all solve a lot of problems, they are all more efficiant means of transportation.

sad to see carmakers go under though.

then again we may see the age of the electric car soon--and a boom in electricity produced by nuclear power.