GM to merge with Chrysler?
Discussion
If you hadn't heard by now, the New York Times breaking a story that GM and Chrysler have been engaging in merger talks for as long as month. Unnamed sources close to the talks are reporting that the chances of a merger taking place are as high as 50-50.
Without question, the merger of General Motors and Chrysler would dramatically change the dynamics of the world automotive market. Whether it would ultimately be a good or bad move is, of course, highly debatable.
Without question, the merger of General Motors and Chrysler would dramatically change the dynamics of the world automotive market. Whether it would ultimately be a good or bad move is, of course, highly debatable.
Cerberus bought Chrysler for all the wrong reasons, hoping to re-finance the company quickly then move it straight on. They also own 51% of GMAC. Cerberus is hoping to dump Chrylser and its debt onto GM and in return give them back the 51% stake they hold in GMAC. An interesting plan but I have to think that GMAC in these current financial times probably isn't that hot a property right now either. Personally smacks of a lose/lose for GM if they do it, to me anyhow!
Strange if the big three become two!! Chrysler remind me of When BMW sold Rover all they were living off was one model and a lot of face lifted cars, MG's were all re badged and Chrysler range is very much the same within Jeep/Dodge the only thing in Chryslers Range is the 300C but that's had its day!
Not sure if anyone would just buy the Viper as a brand but they don't seem to sell enough cars.
Not sure if anyone would just buy the Viper as a brand but they don't seem to sell enough cars.
If they could structure the merger to get rid of some of the debt it may be a go, although that kind of thing is looked at quite hard in current climes...
Of course they could be going for a virtual monopoly to try and increase the prices that Americans pay for cars to get them out of debt!
Of course they could be going for a virtual monopoly to try and increase the prices that Americans pay for cars to get them out of debt!
Chrysler's September 2008 sales were down 33 percent from the same period a year ago.
Dodge Ram sales declined 31 percent in that period, from 30,100 in September 2007 to 20,812 in September 2008.
Jeep Compass was down 65 percent, Dodge Durango down 78 percent and Dodge Dakota down 85 percent.
The Viper was the only vehicle to have a sales increase out of the whole group, up 258 percent in September versus a year ago, although the actual numbers are very small. Chrysler earlier announced earlier in the year its looking for a buyer for the Viper.
i take it these figures dont include the UK market
Dodge Ram sales declined 31 percent in that period, from 30,100 in September 2007 to 20,812 in September 2008.
Jeep Compass was down 65 percent, Dodge Durango down 78 percent and Dodge Dakota down 85 percent.
The Viper was the only vehicle to have a sales increase out of the whole group, up 258 percent in September versus a year ago, although the actual numbers are very small. Chrysler earlier announced earlier in the year its looking for a buyer for the Viper.
i take it these figures dont include the UK market
Edited by Viper on Tuesday 14th October 18:04
It wouldn't matter if it did include the U.K. market. If they're in trouble in the U.S. they couldn't sell enough cars outside the U.S. to plug the hole. Chrysler is in a serious mess and is being run by a master with no motor industry experience. I can't imagine VIper is worth that much to a potential purchaser as you'd only be buying a brand name. The existing product would be hard to replicate and somewhat pointless now anyhow. It'd be rather a placebo sale by all accounts.
Durange sales are in the toilet because it uses about as much fuel as a Boeing 747-400. Even over here it has a bad reputation for guzzling petrol. Now that Petrol isn't cheap here anymore nobody wants them, back in the early summer when fuel was over $4/Gallon selling big SUVs was like selling Heroin at a Monastery.
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