GM Leads Race to Buy Chrysler

jamesmcclain340 said

i dont see how they can lose money like they did and still have the capital to buy chrysler. i wouldnt take stock options in a loser. maybe they are taking the options thinking that after they gut the money makers out of mopar and discard the rest it will bolster gm back into the black. maybe with less competition they can make a profit at the expense of mopar.

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Loosing money in simplified terms is more cash going out (expenses) than cash coming in (revenue) Capital is money or assets in the bank (savings) GM just sold their share in GMAC which gave them a lot of cash. They are probably going to use this money to purchase Chrysler.

Also there usually is no advantage as far as revenue is concerned to spending a large amount of money for something then parting it out (I said usually, doesn't mean they won't). Not counting the assets of Chrysler if you part it out GM or anyone else doesn't what to offend the current customers and risk loosing them.

If GM parts out Chrysler, I the very next day become a Ford guy. I left GM once because they parted someone out I not going thru that again.


Chuck