GM - Chrysler Merger???

[70_challenger]

Here in Detroit, reports are that Cerberus will give Chrysler to GM in exchange for the remainder of GMAC.  Sorry, folks, we're talking about GM owning Chrysler outright...Not a 'merger'

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081011/AUTO01/810110443

When Daimler was trying to sell Chrysler last year, GM stepped up and offered twice to buy them.  But now, I cannot possibly imagine why they would want them.  Both companies are in dire straits financially, and I cannot imagine what GM would gain...Chrysler and Dodge have too much overlap with the other GM brands.

I don't really see this deal happening.  It would make more sense if they had some strategic partnerships (like engine/trans development), instead of outright owning the company.

-Tom

[ChallengerHK]

I don't really see this deal happening.  It would make more sense if they had some strategic partnerships (like engine/trans development), instead of outright owning the company.

If the powers that be are paying attention and thinking logically, this merger will not happen. GM and Chrysler, and Ford for that matter, are all saddled with one primary problem: the UAW, with its attendant low quality, high cost and most importantly high legacy costs. Merging GM and Chrysler, or GM owning Chrysler or however it would shake out, won't solve that issue. 

[go-fish]

I agree HK. That is just one of the many reasons this is all peculation and will most likely never happen. GM can't afford to pay attention and Cerebrus isn't done with Chrysler. Also, why would they give Chrysler away for a mortgage company. Do they not know the credit markets are bad right now.
Even when the credit markets were healthy (or appeared to be so, GMAC for Chrysler straight up would not be a good deal).

[jeryst]

In February, one of our competitors bought us, then promptly closed us. Their single intent was to take us out of the market and thereby gain more market share for themselves. They took our equipment and transferred it to their existing facilities, thereby gaining more capacity. They took our customers lists, and replaced our product lines with theirs. Because our facility was closed, the union couldnt do a thing, and the new owners werent committed to anything.

Sad to say, but this may be the fate in store for Chrysler if GM gets them.

[ChallengerHK]

I'm not completely certain, but I think the UAW's contracts include stipulations that any buyer buys the contract along with any production facilities. THe only way to torpedo the UAW that I've thought of would be to "go out of business," and re-open the next day as a new business, then tell the UAW that anyone who wants to do solid work for a reasonable wage is welcome to apply.

[BIGSHCLUNK]

I'll keep my comment brief..

UAW
 
Not buying American (been guilty of this myself)

'nuff said

[jeryst]

I'm not completely certain, but I think the UAW's contracts include stipulations that any buyer buys the contract along with any production facilities. THe only way to torpedo the UAW that I've thought of would be to "go out of business," and re-open the next day as a new business, then tell the UAW that anyone who wants to do solid work for a reasonable wage is welcome to apply.

That's true if the company is bought, and continues to operate. The union at our place had similar stipulations. But the company was closed, and the assets were relocated, so our company did go out of business. We simply ceased to exist as a company.

[ChallengerHK]

Not buying American (been guilty of this myself)

Things may well change, and I hope they do, but at this point, having seen what I've seen in assembly plants, foundries and stampng plants, I don't think I'll ever buy another American car until the unions are broken. I refuse to pay for them to smoke dope, drink, threaten and assault anyone who dares to actually work hard and in general do a pi55-poor job. This is the reason I own a Hyundai, because I couldn't afford a Honda or a Toyota.

[jeryst]

Things may well change, and I hope they do, but at this point, having seen what I've seen in assembly plants, foundries and stampng plants, I don't think I'll ever buy another American car until the unions are broken. I refuse to pay for them to smoke dope, drink, threaten and assault anyone who dares to actually work hard and in general do a pi55-poor job. This is the reason I own a Hyundai, because I couldn't afford a Honda or a Toyota.

I agree. I've worked in two union plants, and although the guys are decent people, there is a "union mentality" instilled in them, that is all about greed. Of couse, in their defense, the same mentality exists in management, so our manufacturing future is pretty much bleak.

[torredcuda]

I worked for a union shop doing government work and we had the same problems-drunk and drugged out employees doing little and crappy work being protected by the union.When contract time came up the owner wouldn`t negotiate with the union and finally closed the doors and moved the company south where he had another business and got rid of the union so he could actually compete in the market and be profitable.I hope it doesn`t happen but it did before and Chrysler is still kicking and making vehicles.I amy be in the minority but I have been driving a nothing but newer Mopars for years and except one all have been very good ,relaible,cheap to maintain vehicles.

[cudagirl4406pk]

OMG that would put kenny right over the falls having chrysler part of GM

[BIGSHCLUNK]

My uncle worked in the Ford plant just south of Chicago for pretty much his whole life (fron the end of WW2 till he retired) .... the stories I heard...    And yet the UAW DEMANDS this and that... its total B^!!$#it 

[jeryst]

My uncle worked in the Ford plant just south of Chicago for pretty much his whole life (fron the end of WW2 till he retired) .... the stories I heard...    And yet the UAW DEMANDS this and that... its total B^!!$#it 

They keep saying that they do what they do to keep American jobs, yet they are probably the biggest reason why so many American jobs have been lost.

[RaptorF229]

I saw a story on the news today saying they stopped talks about a merger to now. I think Cerberus needs to get the remaining shares of Chrysler from Daimler first.

[bb71challenger]

Never knew the UAW was such a rotten apple. I am all for union labor if it is done the right way. The union should protect the workers but not to the degree that they purposely put out crappy workmanship or to the point that they can get waisted on the clock