Yahoo.com: GM in early talks to buy Chrysler
I heard this rumor today on the local news. I can't seriously believe this is real. Maybe someone who knows the industry better can explain it to me, but from what I see GM and Chrysler merging make no sense. Lets review:
Chrysler lost over $1.4 billion (that's with a "b") last year.
Chrysler depends on large SUV and truck sales just like GM, at a time when both are declining.
They have a similar line-up of vehicles.
They both have too much capcity as it is.
They have the same high labor costs.
What could GM possibly get from this?
5 years ago
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2 comments:
Yeah, I saw the same article and wondered... pretty much the same thing.
I'm so glad my mom is near retirement from GM. It's shitnews like this (and all the other problems The Big Three have had) that really make me wonder how she has managed to stay there for 40 years.
The 'Noise' could cause a temporary jump in the stock price on pure speculation. But that makes me think that the rumor probably came from Daimler-Chrysler. It would be a dumb move for GM considering that they're way over-burdened in debt.
I think there's a lot of pride and prejudice involved here. Selling Chrysler to Daimler-Benz was the first act. But this time, if Chrysler doesn't go to the most capable American company (GM), it would almost assuredly go to an Asian company. This would then mark the first time in History that a major US auto-company got sold to an Asian Company. Just let that sink in for a minute and savor how that feels. Sucks doesn't it? I think the rumor was a last hope speculation of preventing that eventuality.
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