2k7gtcs

So I take it you really don't care for GM interiors Paul

svopaul

No

Having worked on Fords, GM's and Chryslers up to new I think I've got a fair assessment

Even a 2002 Trans Am while better than earlier cars still has issues...door panels prone to cracking as an example.

Knight

I don't understand how a company can buy the company for less then 11 billion, and get 11 billion in cash with the deal as well. I know there is reasons for it, but to a normal person it sounds like getting a company for free.


Me "I'll buy this house from you for $200,000 if one of the rooms in it contains $250,000 in cash." Seller "OK!"

97svtgoin05gt

I think GM buying Chrysler will sink GM even faster than they're sinking now. I worked for a company once that tried this. Just shoveling through the power struggles within management will take the better part of a year or maybe more. My company sank like a rock to the bottom once it was combined.

future9er24

What if it costs the seller $100,000 a year to maintain the house, and they weren't making enough in profits to hold on to the house much longer. Instead of living with the house for 2.5 years and then going bust, offload the problem house, with its assets, and you can move on to try something new with your life without wasting the 2.5 years on that house that was going to bankrupt you anyway

basically its just saving time... at least I think it is. thats how it sounds in the Arin brain

2k7gtcs

How about you slowly and methodically tear the house apart selling the pieces (assets) as you go. First you pull out the kitchen sink and sell it on ebay. Then you pull out the bath tub and sell it on ebay. Finally you sell the lot the house sat on and you have recouped your investment and yet you still get to keep the cash. In theory it works, I don't know if this is GM's intention because I have no idea what the requirements for the Chrysler employees pension plan would be. They would probably renegotiate huge cuts and concessions blaming tough times for the auto industry and then go ahead and bust it up anyway. Or even better for GM offload Chrylser's pension on the US taxpayer much like airline companies have done.

The problem is if it was really worth cannibalizing the equity firm that holds it would have done it already.

TomServo92

Agreed. It's like two drowning men grabbing on to each other to stay afloat. Buying Chrysler will be a qaugmire for GM.

future9er24

GIGGITY

Zastava_101

I hope Renault will buy Chrysler. That was Chrysler and Dodge will survive for sure.

edumspeed

That may work.

GT5088

I don't get it either, but I think there's one thing we can all agree on. If GM gets Chrysler, then the US Government will bail out GM for sure if they fail since there will be too many jobs at stake....good or bad? I am not sure.

Hollywood_North GT

This makes sense to me, too, except that I must assume GM and Chrysler would be well aware of this, and that other factors come into consideration. And, again, with Cerberus owning 51% of GM, they may be foisting Chrysler upon the General ... with the General likely to dissolve everything but Jeep, gain some tax leverage, and be in a better position to seek valuable concessions from the government.

GrnT

GT5088

something will have to give...

WaltM

Does anyone remember when Renault bought AMC? It was a brief union that was pretty much a disaster. In the end, Chrysler bought the remnants of AMC and liquidated the rest.

In the end, it's all about profit. Unfortunately, stripping Chrysler and keeping Jeep probably makes the most business sense.

Zastava_101

Yeah, but Renault didn't had Carlos Ghosn back then.
He managed to turn Nissan, after Renault bought them, from a point where they were ready to file for bankruptcy to a point when they made a profit in just 1 year.

TomServo92

GM can't even manager their own brands and production over-capacity. I don't have much confidence that they know how to deal with Chrysler once they have it. IMO this whole things just reeks of desperation.

jsaylor

This merger tells us a lot about the shape GM is in. Cerberus is dangling the 11 billion dollars that goes with Chrysler like a carrot, and despite the fact that taking on Chrysler is going to make every problematic logistical issue at the General even worse GM is so cash strapped that they just don't care. It looks like GM has resorted to simply gritting their teeth, closing their eyes, and squeezing the trigger on this deal despite what common sense is telling them because they can't come up with a better answer. Perhaps they are hoping that somehow they can manage something so miraculous with that 11 billion dollars that they can dodge (no pun intended) the bullet pulling the trigger on this deal is going to let loose.

That is desperation pure and simple, and says a lot about how close bankruptcy is for GM. Even more tragic, under decent management Chrysler represents a much easier and cheaper fix than GM does since they lack GM's rather severe brand redundancy problem and aren't quite as desperate for cash. Alas, it looks like GM's final major foray into stupidity may be making certain that they don't ride into that dry, dusty sunset alone. What a bunch of ***holes.

Autotooner

LMAO!!!

BTW, Arin- your custom title???

edumspeed