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GM and Chrysler Merging? Who Will Be The Next To Fall?
DETROIT - General Motors Corp. and Chrysler LLC have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports late Friday.

The Wall Street Journal, citing people it described as familiar with the discussions, said Cerberus Capital Management, the private equity firm that owns 80.1 percent of Chrysler and 51 percent of GMAC Financial Services, proposed trading Chrysler's automotive operations to GM. The Journal said Cerberus would receive GM's remaining 49 percent stake in GMAC.
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GM and Chrysler Merging? Who Will Be The Next To Fall?



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350zdon17350zdon17 - 10/11/2008 9:51:21 AM
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think they wanted to add to their debt

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dodgedartdodgedart - 10/11/2008 10:48:31 AM
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I can't wait for the new models. Hindsight Hybrid, Lawn Dart, Little Green Wagon Hybrid Express (made from recycled 1970's dodge army trucks).

You never know. If it works out it will establish widespread respectability for Gay Marriage.

Will they rename the chrysler building?

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TTRaceRRTTRaceRR - 10/13/2008 11:30:44 AM
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The Chrysler building is now owned by Arabs, specifically the Abu Dhabi Investment Council. That should conjur up some interestings names.


AMiodynskiAMiodynski - 10/11/2008 10:52:07 AM
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They will rename is it to Dumb and Dumber !!

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wooodwoood - 10/13/2008 12:22:32 AM
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Bingo!!!!!!!!!!!

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1995e341995e34 - 10/11/2008 2:53:48 PM
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if oldsmobile can't survive, how can chrysler?

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DieselRulesDieselRules - 10/11/2008 4:13:27 PM
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Auto-leasing is a cash-cow.
But GM's finance division "diversified" into home mortgages, and is facing a temporary cash hit at a time when it can't afford ANY kind of hit.
Cerberus is taking advantage of this, and using it as a way to dump its unprofitable Chrysler lump on an unprofitable GM lump. Together, they could lose money at a new, record-setting pace!

As Arlo Guthrie said (of garbage piles) "I figured one big pile is better than 2 small piles ..." and that's exactly what this merger looks like to me.

On the other hand, if they merge together, imagine how much $$$ they can save on the legal costs of one bankruptcy instead of 2!

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bmwdrvrbmwdrvr - 10/11/2008 4:45:25 PM
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this sounds like an awful idea, i no alot of peopledont want to see chrysler fail but GM is in bad shape, if Daimler with all its resources couldnt do it all these years, why does GM think it can save chrysler and make them profitable. GM is in this situation paritally by thinking like this with FIAT, now FIAT has gained alot of capital, technology, r&d, and platforms, and engines....while GM was stuck with the bill. Bad idea GM let it go

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TTRaceRRTTRaceRR - 10/13/2008 10:16:12 PM
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"if Daimler with all its resources couldnt do it all these years, why does GM think it can save chrysler and make them profitable."

Chrysler was a profitable company until Daimler stepped in. I doubt they would be in this bad of a situation if it wasn't for Daimler raping them and leaving them to die.


g2okg2ok - 10/12/2008 12:04:05 AM
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GM should stay away from Chrysler.

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TTRaceRRTTRaceRR - 10/13/2008 11:40:03 AM
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I agree! It's GM is grabbing for an anchor when they need a life preserver. It's like the obese kid drowning in a pond, grabbing onto a little kid to stay afloat. GM only wants to eliminate a domestic competitor to retain market share. It won't work. Read the headlines today. GM is drowning. They both stand a better chance going it alone and dog paddling to shore.


doctorproctordoctorproctor - 10/12/2008 12:26:22 AM
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Sort of like 'flogging a dead horse', don't ya think?

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minhvunguyenminhvunguyen - 10/13/2008 5:15:34 AM
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This is certainly news but I think the article did refer this as being somewhat dated (initial conversation was over a month ago) and may prove to be no longer appropriate in the recent days. Specifically, the 2 companies are reverting back to their core skill. In essence Cerberus is a financial holding company (it buys into various troubled mfg and service companies, regardless of industries) and do some quick clean up of underutilised assets for quick turn around sale. Apparently they found something in Chrysler that was possibly worth some money to GM (reduced pension plan, promising tech, favourable union terms, etc.). Meanwhile GM was trying to get away from financing and go back to car making. But this possible matching of interest has taken the back seat given the worsening credit crisis over the last 10 days. GM's valuation has gone down and its financing arm is undoubtedly in worse condition. Cerberus likewise is now peddling a promising asset to a poorer potential-customer. This thing will likely go away until there's some semblance of order in the credit and stock market.

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TTRaceRRTTRaceRR - 10/13/2008 11:25:38 AM
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How could GM buy anything? They are on the brink. Their only interest is getting Jeep and grabbing up Chrysler's slice of market domestic share by eliminating them since they won't win over any import buyers. It's a shame that Cerberus is now showing its true colors using the once great Chrysler Corporation and it's many employees and suppliers as a bargaining chip in it's real life game of Monopoly. They might as well put them up for auction on E-Bay. Where's Kirk Kerkorian when you need him? I wonder how much the golden parachute is going to be for Nardelli this time. Jim Press might as well retire. Who'd hire him now? The fall of the US auto industy is nothing to laugh about or celebrate unless you're not American. We all fall together, and before you Euro-fans celebrate, you'll fall too.

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