View Full Version : GM to buy Chrysler?

02-17-2007, 12:07 AM
GM to buy Chrysler? (http://news.yahoo.com/s/nm/20070216/bs_nm/chryslergroup_gm_dc)

NEW YORK/DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news) is in preliminary talks to buy Chrysler, the struggling U.S. arm of DaimlerChrysler AG (DCXGn.DE) (NYSE:DCX - news), or to strike a strategic alliance with the rival automaker, sources familiar with the situation said on Friday.

There was deep skepticism on Wall Street about whether such a merger made sense for GM and whether it could ever happen.

An outright takeover of the Chrysler Group by GM would risk complicating the turnaround efforts of both companies, analysts said, even as it created an industry giant with a nearly 40 percent share of the U.S. market.

The talks to buy Chrysler, described by a source familiar with the situation as exploratory, were first reported on Friday by the trade journal Automotive News.

Automotive News, citing unnamed sources in Germany and the United States, said the companies were engaged in high-level talks about GM buying Chrysler Group -- which sells Chrysler, Dodge and Jeep vehicles -- in its entirety.

02-17-2007, 01:42 AM
i don't think it's gonna happen... anti-trust laws in the US would prevent tht (i think)... also, a collaborative relationship would be more beneficial

02-17-2007, 06:27 AM
Ha. If yall thought Jeeps fell apart before. If that actually does happen, which I doubt, I'd never buy a jeep again.

02-17-2007, 10:27 AM
I think Toyoa shed buy out Chrysler..

02-17-2007, 10:37 AM
I think Toyoa shed buy out Chrysler..

Why? When Chrysler doesn't sell enough to make it worthwhile NE ways...

02-17-2007, 01:09 PM
i don't think it's gonna happen... anti-trust laws in the US would prevent tht (i think)... also, a collaborative relationship would be more beneficial
It didn't stop Daimler from buying them. But you're right, a co-op arrangement would better-they might even be able to put themselves on top of the truck market.

02-17-2007, 01:43 PM
GM is grasping for straws at this point.

02-17-2007, 04:22 PM
Yeah, I don't think it'll happen, either. GM turned down any connections to Nissan/Renault because they felt that N/R would get far more benefits than GM. A merger with Chrysler means that both companies would just end up with extra liabilities. On the other hand, it would be a way of making sure GM stays the world's largest automaker for a few more years.

02-17-2007, 04:48 PM
GM is grasping for straws at this point.


We do a lot of research in my 400 level marketing courses on stuff like this (case studies etc)...when company's start to fall they'll grab at anything to try to swim.

GM and Ford lost a lot of their loyalty in the US when they sold out to Mexico, and Toyota stepped right in and started producing their product here in the states...which took a shit ton of both Ford and GM's market share :).

At this point i dont think it would be smart for GM to buy a company such as Chrysler...most people know that they have a horrible reputation for quality of cars they produce anyhow, that'd just be another nail in GM's coffin. They may be able to work with them, but let's face it...the popularity of buying "new cars" isnt as great as it was a few years back. People simply started looking at what they are spending on these things and noticing that they are spending a 40-50,000 on a new vehicle and in a few years time you damn near can't give it away because its disposable.

Putting food on the table > New car in the driveway loosing value every day.

02-17-2007, 08:47 PM
The diffrent is chryslers sells havent really dropped like GM's has, there not selling a ton but they arent losing sells either you know what i mean?

If GM buys out chrysler that is going to be sad.

02-17-2007, 09:31 PM
so much mis-information being thrown around, il make a new thread.