steve burns

I first thought GM was nuts to try to acquire Chrysler.
But read today that GM would acquire Chrysler, then eliminate it.

This would be a brilliant move. Buying it for a song, and then eliminating it would increase GM's market share. Increase sales would more than make up for the acquisition cost.

V Amazed

I sincerely hope you're kidding. If not, please tell me you're not in corporate America.

evilmonkey

I would venture to guess that GM's real competition hails from Japan and not Detroit.

04 commemorative

Tkenmore

I can see your point. It would help GM to capture more of their bread and butter (truck sales.) Also they could then use Cummins diesels and the Hemi badge.

I just don't see it happening though.

steve burns

GM in the short term wont be able to compete with Japan...at least soon enough to make a difference.
But, eliminating Chrysler from the market, leaves one less American auto company for people to buy from. Those who bought Chrysler are not going to go to Honda for product...they are going to go to GM or Ford.

In the short term, the move would be brilliant.

cthusker

I wonder if there might be another reason behind GM's move to buy Chrysler. GM is huge but combined with Chrysler once again they instantly become the largest auto maker in the world.

With GM sliding into a possible Chapter 11 they beg Uncle Sam for HUGE loans. The government has already played piggy bank for over a trillion dollars to bail out Wall Street, investment banks, insurance companies, airlines.. etc.

Is the Govt really going to allow GM + Chrysler to slip into oblivion? How many jobs does that take with it? What a the ripple affect throughout America? You name it and the auto industry has something to do with it from transportation, finance, plastics, steel.. you name and they have an impact on it. Tens of thousand of small businesses tied into the auto industry. Ford is almost toes up too.....

Far be it for me to suggest some GM corporate execs would think of such a Machiavellian plan................

Smitter

GM may have competition with the other auto makers but the Corvette has no competition so they should just make Corvettes.

GCD1962

GM as it stands now can't sell enough of its cars, how does buying Chrysler and folding it, create more of a demand for GM cars that simply isn't there. Not well thought through

JBHunter

Finally...

A Chevy VIPER...now that's a name that even a Corvette guy could like...

C6 Fan

CerberChrysler has been trying to peddle off Chrysler to everyone.
Autoextremist did a pretty good summary
http://www.autoextremist.com/current/

dvilin

obie1

Can you say COMRADE!

C6NRED

Chrysler does not have even one vehicle they sell that I would like to see continue other than if they could take about 700 or 800 pounds out of the Challenger.......the rest of their line up pretty much consists of decent engines surrounded by cruddy chassis and bodies -- just like always........GM would have to be crazy to invest even one dollar in this company -- even if their ultimate goal was to eliminate them....Chrysler will take care of that all by themselves without GM having to invest in doing so for them!!!

John510

Cool maybe we can get a Viper body with a LS9 in it.

AORoads

The fact is, steve is right...in some businesses. The idea of "acquisition" is almost always defined as synergy, cost reduction, reduction of redundant products, more innovation, more great employees, etc. But the real reason is, in many cases, the elimination of a competitor.

Essentially, buying its "book" (of good customers), taking over its best product lines, keeping its best locations/plants, retaining only the top/cream of crop employees. Everything else goes in a fire sale, soon and fast. But the underlying, main reason is to eliminate a competitor.

In this case, however, Chrysler and GM, unfortunately Chrysler really isn't a competitor in anything, not product, product line, R&D, pipeline, plants, retail locations, etc. Therefore, it's a bum move, a dead end, a waste of more money that GM doesn't have to waste and only theoretically, a move to gain/increase governmental bailout support.

It would be a mistake that will get into business case study books shortly after GM's filing for permanent, final sale and dissolution. I hope it doesn't happen. Maybe "Carlos G." will dissolve his competitor.

Vinnie T

I'm with AORoads on this. I've never been a big fan of Chrysler and most of their best tech came from M-B which is now out of the picture more or less. It seems that the R/D end of the operation has somewhat dried up since being acquired by the investment group who's sole motivation seems to be spinning the company for a profit. Not sure they saw this downturn coming when they purchased Chrysler though.
I don't see a big upside on this other than eliminating a domestic competitor.

crazyeddie

Finally GM gets a minivan that someone would actually buy!!eddie

FLGator

GM has been trying to go bankrupt for years and couldn't even accomplish that. Looks like they may finally succeed. Combining two poorly managed companies does not make for a winning combination.

GCD1962

Even if Chrysler were given to GM for $1 it would prove to be too costly for GM. It would then have to buy out all the Chrysler dealers. With strict franchise laws in almost all states, the cost would sink GM even deeper into debt