GM/Chrysler Merger Dead in Water

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1. By Dave #1, Posted: 11/7/2008

   Good, lets hope this is the best thing, I wonder if the door is still open for Nissan? But Nardelli needs to go so does Wagoner. Why are these guys there?

2. By  Wayne #2, Posted: 11/8/2008

   I am honestly very happy to hear this news. I think that if GM and Chrysler merged, it would be an end to Chrysler, just to help GM stay afloat. I believe that Nissan/Renault with Chrysler is a much better "synergy". I guess some good can come out of this economy huh?

3. By Bill Burke #3, Posted: 11/8/2008

   Thank God! This idea was nothing short of a money grab on the part of Ceberus, which would have gained control of the auto industry on the cheap. As an investment venture, Ceberus has no other agenda than to make money for it's investors. No soul, no compassion, no sense of history or tradition,no automotive passion,no commitment to a culture of brand identity,existance without life and no place in the automotive business. Now is the time for workers to form a co-operative and get control of this company before these greed-mongers break it up and sell it off to anyone. I think Press/Nardelli have a viable business plan and some great product to restore this company. I actually think they have a better shot than Ford or GM. I think this was about saving GM, not about merging with Chrysler. All three companies have a shot with some help and some management leadership,intent on long term prosperity and not next quarters bonus strike point. Being a Chrysler devote has not been easy, but maybe,just maybe there is light at the end of the tunnel and maybe, just maybe people will realize we need Chrysler more than some silly imports. BUY AMERICAN! Have you driven one lately?

4. By Dan C. #4, Posted: 11/8/2008

   Buy American? I have bought and American car before and so have members of my family, but the experience has led us straight back to import brands. The public has this perception right now that import marques are efficient, innovative and reliable while the domestic manufactures are stodgy, out dated and poorly made. The truth is no cars, including the much vaunted Hondas and Toyotas, are perfect, but the car buying public seems to have an easier time trusting the import brands to deliver what they want in an automobile at the moment. Really, I think the "big three" have brought all this doom and gloom on themselves. Years of resting on their laurels, stagnation instead of innovation and taking their customers for granted is what has landed them in this mess. Why would, and why should I buy a car from them right now? Patriotism? Sympathy? For a good deal on a nice car? Hmm, let me think. Well I am not an American, I don't really feel sorry for them and I would not trade my current Lexus for anything else...other than a brand new Lexus.

5. By Tim #5, Posted: 11/9/2008

   The others said it best. If Cerebus wants out they need to sell to someone that will expand it's global presence and keep jobs like the Chinese, Koreans or an independent entity.

6. By Reece #6, Posted: 11/9/2008

   Sanity at last! while generally against government bailing out bad companies, just encourages them to to continue (eg US airline industry) bad management and no restructuring, these companies are too big to let die. Soem form of assistance will be needed, but there must also be a pound of flesh from the companies inr eturn, including much of their management such RickW And Nardelli (Ford seems to be making some ok decisions). A buy out by Nissan or at least some form of investment is Chrysler's best chance at this stage. Again why buy crap cars just because they are built in US buy the car that suits you best and encourage GM et al to build such cars.
   Cerberus no soul, only after the interests of its shareholders? Yeah thats the whole purpose of leverage buy out firms sorry "private equity firms" to expect anything else is to expect a christmas present from Osama Bin Laden.

7. By Lee #7, Posted: 11/10/2008

   GM/Chrysler would have been an ultimate example of what I call a "panic merger", when a faltering company thinks, "OMG we're going down fast and we need to do something, hey, lets merge with another company quick before someone else snatches them up". Lee Iacocca had it right - when you put two financial losers together, you get one big financial loser.
   If there's one thing GM doesn't need now, it's another three brands to sell their wares under (which would give them 11 brands to cover the market Toyota and others cover with two or three), a Chrysler lineup short on small fuel-efficient cars and heavy in declining categories like SUVs and vans. Then there's the additional pension and health insurance liabilities Chrysler would bring.
   I know Volkswagen has been eyeing building some U.S. assembly plants to reduce the cost of currently German-sourced vehicles like the Rabbit/GTI and Passat. GM and Chrysler have excess manufacturing capacity and need cash. Seems like there's a good deal for everybody in there somewhere.

8. By Ed #8, Posted: 11/10/2008

   Autoblog today: "UK site offering two Dodge Avengers for price of one"
   (But that price is 18,500 POUNDS or so. The pound was $2 a while ago, but now is only $1.5 or so. SO you get 2 for about 30k, or $15k each.
   Sounds about right, having driven the POS in CT (2 day rental selected by a colleague) and having an utterly low opinion of it.

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