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Is GM gonna buy Chrysler???

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Old 02-16-2007, 02:29 PM
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Veloce Raptor
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Default Is GM gonna buy Chrysler???

http://money.cnn.com/2007/02/16/news...ex.htm?cnn=yes
Old 02-16-2007, 02:35 PM
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TR6
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On the surface, I don't think that would be a prudent move on GM's part, financially speaking. And I hope they wouldn't do it motivated by ego (to maintain position as the world's largest auto maker). Hopefully the board at GM has more sense than that.
Old 02-16-2007, 02:47 PM
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Cory M
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Seems like a bad move, GM already has too many brands that don't sell and Chrysler can't even sell the surplus inventory they have. They should cut off the fat and just concentrate on making better vehicles (like the C6 Z06, new Cadillacs, new Silverado, the new Saturns) and hope they can win back some of the domestic market.
Old 02-16-2007, 02:54 PM
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Veloce Raptor
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Chrysler has Mercedes technology in many of its models. In addition, it owns the high MPG minivan segment. It may be a good boost for GM if the combined entity can really pare down the crap that doesn't sell....and it may also be a way to castrate the unions.
Old 02-16-2007, 02:59 PM
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TR6
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Originally Posted by Veloce Raptor
It may be a good boost for GM if the combined entity can really pare down the crap that doesn't sell.....
I would agree with you IF they did that. But GM has historically shown that they suck at product rationalization.
Old 02-16-2007, 02:59 PM
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Here's a thought, build better cars that people want. Don't buy someone's problem.
Old 02-16-2007, 03:01 PM
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Veloce Raptor
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Originally Posted by TR6
I would agree with you IF they did that. But GM has historically shown that they suck at product rationalization.
Yup. Right you are.
Old 02-16-2007, 03:38 PM
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Tom R.
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Lee Iacocca in one of his books talked about chrysler merging with another company that wasnt doing well at the time.

he said something to the effect that the stupidest thing a company in trouble could do is merge with another company in trouble. all you get is one bigger company in a lot more trouble.
Old 02-16-2007, 03:48 PM
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I'm pretty sure that when you mate two pigs, you are still going to produce more pigs.

Best thing that could happen for the Benz boys though, as they pull out of their problems.
Old 02-16-2007, 07:37 PM
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More news:
GM to help Chrysler build truck DaimlerChrysler AG's Chrysler Group and General Motors Corp. are in talks on a joint project that would provide Chrysler with a version of the big Chevrolet Tahoe sport utility, the New York Times said on Friday, citing people with direct knowledge of the talks. The paper said there was no indication of when the two companies might reach a conclusion in the talks, which it said have been underway for about six months, according to the same sources. The Wall Street Journal also reported on Friday that an alliance between the two Detroit carmakers was possible, citing people familiar with the matter.
Old 02-16-2007, 10:21 PM
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Dan in Florida
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Originally Posted by TR6
GM has historically shown that they suck at product rationalization.
There is now significant overcapacity in worldwide auto production and the winners are already crossing the finish line. Regardless of what happens to the Chrysler division of MB, large parts of GM and Ford won't survive. Yes, some of their stronger brands will continue, but even with downsizing, they won't be competing on a world scale.
Old 02-17-2007, 02:17 AM
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I believe that if Chrysler is sold off, it will not be DaimlerChrysler but just the US Chrysler segment.

On the other hand, Chrysler did sustain Daimler through its tough times the past few years. Failed product innovations like the brake-by-wire, etc. Now, it has become a liability to its parent company and needs to be offloaded.

Taking about sucking blood from a turnip.
Old 02-17-2007, 08:41 AM
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Here's a thought, build better cars that people want.
Ford needs to take that advice as well. How much more bad off would they be if they didn't have the new Rustang?
Old 02-17-2007, 09:17 AM
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It's an interesting strategy especially if they use it to stay #1 ahead of Toyota (short term strategy).

Also, if they can make the product in existing GM plants (long term strategy) then they can use it to keep factories busy.

It's a pretty strong brand and although it overlaps with Buick it could help round out their portfolio.
Old 02-17-2007, 01:05 PM
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Originally Posted by Veloce Raptor
Tying two rocks together to see if they'll float...


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