GM and Chrysler talking about merger

[Nodz86]

BREAKING: GM and Chrysler talking about merger

 

Posted Oct 10th 2008 11:04PM by

Damon Lavrinc

Filed under: Etc., Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, LLC., GM

 

Our heads are still reeling from one of the most tumultuous financial weeks on record, and the auto industry was far from immune. But despite our best efforts to drown our concerns in Racer5 IPA, the hits keep coming, and this time it's courtesy of the New York Times.

 

The Gray Lady is reporting that General Motors and Chrysler have been in talks about a possible merger for the past month, that "negotiations are not certain to produce a deal," "would most likely still take weeks to work out" and that two unnamed sources say that the chances of the merger going through are "50-50." Obfuscate much?

 

With GM's stock prices ending the week below $5 a share and Cerberus – the private equity firm that owns Chrysler – grasping at the flimsiest of straws, including continued talks with Nissan/Renault, a merger of unequals is two parts disturbing and one part intriguing.

 

Cerberus' people haven't been returning phone calls and the only comment offered to the NYT from the General's spokesperson, Tony Cervone, was, "Without referencing that specific rumor, as we've often said at GM officials routinely discuss issues of mutual interest with other automakers." Broad, unclear and exactly what we'd expect.

 

The merger of GM and Chrysler would put Cerberus in charge of an "unspecified equity stake" in the corporation, making the two-headed General-Chrysler (or Chrysler Motors?) the world's largest automaker, controlling over 35 percent of the U.S. vehicle market, causing rifts among brand faithful and offering more potential (vehicle) cannibalization than the Donner Party. Not to mention both automakers' labor contracts, supplier dealers and slipping market share. Shocked? Don't be. We give it a snowball's chance on the Sun. Thanks to ALL who tipped in.

UPDATE: Official statement from Lori McTavish, Executive Director, Communications, Chrysler LLC:

 

Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.

[source: NYT]

 

 

 

From Autoblog.

[t.]

This I wouldn't of predicted. Shows how bad things must be for both of them if they are willing to merge. The Z06 and the Viper could become brother and... err, brother. :S

[gingervette]

no, never, absolutly, positively, 100%, NO! NO! NO! The only reason I would accept them merging is if they plan to un-merge once this economy scare is over. I do not want General Motors to have anything to do with Chrysler Co. I am a die-hard chevy fan and will be until the day I die. Ask the person who's post is above mine and he will confirm that this merger would upset me greatly. GM and Chysler have battled for years over sales and the car world would simply never be the same again, well for America anyway. Not only that, I do not like Chrysler vehicles. There is only 1 and only 1 vehicle they produce that I would consider putting in my garage and that is the Challenger. The other cars they make are worthless in my opinion and they would simply ruin General Motors. (please no hate posts please, this is simply from my opinion and hate posts clutter the threads). And since my opinion serves no purpose other than being only an opinion, there are other things at stake. The way that GM and Chrysler produce their vehicles, and by that I mean thier style of their vehicles, is very different. They could never mix all the styles together. And trying would most definately end up in epic battles over who's style is better. (*coughs* CHEVY *coughs*) What good would a car comapny be if all they do is argue all day? Nothing would ever get accomplished, so they should not consider anything except a possibility to continue their epic car battles. There is just no way that it would work. Absolutly, Positively, NO! NO! NO!

 

well now that I have vented I do believe that I feel better :)

[Nodz86]

You say that redvette but look at VAG they have lambo, buggatti and audi etc and they all manage to keep there individuality, its just that hey all use the same engine.

 

*Thinks about a vette with a V10 or a Viper with a V8*

[Gunned_Down666]

hahah the vette dont need no viper engine.. its ls7 is perfeclty fine the way it is and does a very good job of being a rival for the viper

[t.]

Ask the person who's post is above mine and he will confirm that this merger would upset me greatly.

 

Incase you don't believe him, it will up set him.. Trust me.

[Nige]

We have gotta look at beyond the fanboy issues we have (I'm a GM fanboy !) and just look at the current global econimic issues and they are bad ...........

 

If this merger goes through I won't complain at the end of the day the Motor insdustry is finding it hard through these hard times just like many other industries in the world and if it helps both companies then why not ??????

 

It will reduce manufacturing costs, R&D costs and other costs which you would hope they would pass onto the customer but I wouldn't hold my breath .......

[gingervette]

They now have a new plan that I enjoy...GM basically has most control over this merger. They want to by Chrysler, Dodge, and Jeep completely. Then they will move to keep the Jeeps, keep the 2 minivans that Chrysler/Dodge have, and dicontinue every single other vehicle. Every last one, that means no more Viper, Charger, Challegner, Durango, 300, Apen, Crossfire, all of them, gone. The minivans would be made into Chevrolet and Buick minivans and the Jeeps would keep their name.

[ExplosiveGoats]

no more Viper

 

I wonder how Balto will react to this.

[Baltoman]

Yeah I read that already before on autoblog and didn't really understand it but now I do... and what I have to say is...

 

VIPER vs VETTE 4 LIFE

 

I wonder how Balto will react to this.

 

My reactions are all on the "Dodge to sell Viper brand" thread ;)

[gingervette]

zGeneral Motors officially accounced today that the merger plans between them and Chrysler are cancelled. But with that news, it did not take Hyundai long to react, as they have already began discussions with Cerberus.

 

Hmm...a new 2009 Genesis V8 engine in a 300 maybe? Sounds alright to me :)

[Nodz86]

I read on Autoblog yesterday out of all the brands under Chrysler the Viper is the only one that hasn't slowed down selling and that all the ACR models are sold, mainly due to investment reasons as if the Viper and dodge do die then their value will shoot through the roof

[gingervette]

uh oh, Hyundai has quit talking with Chrysler as well, I would feel lonley if I were them, nobody wants them lol

[Nodz86]

but lets be honest no one would buy anyone atm, nearly every car maker is struggling

[gingervette]

even Toyota for God's sake lol