GM Leads Race to Buy Chrysler

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whitey

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Written by: Autocar staff Detroit, Mich. – 2/26/2007

General Motors is likely to become the new owner of the Chrysler Group. That's according to reports in the financial press today, which suggest that DaimlerChrysler bosses and investors would be happy with a deal that included a significant shareholding in GM in return for Chrysler.

It's almost two weeks since DaimlerChrysler boss Dieter Zetsche made it known that DC was considering “all options” to secure a profitable future for both the German and American arms of its business.

Over that time, several possibilities have been mooted. Hyundai was linked with a Chrysler Group buyout and then publicly distanced itself from the sale. Several Chinese car manufacturers were also reported to be preparing bids, as were various private equity firms in the U.S.

The reason DC bosses are reported to favor a deal with GM is that the General knows what it takes to run a global car company, and has sufficient industrial capital, both in the States and elsewhere, to make the cost savings necessary to turn Chrysler's business around. The Chrysler Group made a loss of nearly $1.5 billion last year; greater economies of scale and far-reaching production tie-ups will be essential parts of its recovery.

One of DaimlerChrysler's shareholders told the Financial Times that DC bosses “are interested in who takes Chrysler over and they would be happy to take equity in GM in return.”
 
Ughhh, Im still not sure how I feel about all this, but.. with that said, Im sure most of us would rather it stay here at home then go with the europian crowd! And well, im glad they are concernd with who buys it! and that they arent concidering Ford!.
 
I wonder if GM does buy it, will it still be a stand alone company as far as brand identy & product. What about future products, like the new Challenger? This is a dark day for the Mopar fans.
 
mikedevore said:
This is a dark day for the Mopar fans.
Click to expand...

Yup even the thought of GM buying it, sickens me.

Wasn't there an individual guy last time Chrysler had trouble that had the cash to purchase Chrysler? I would rather him purchase it than it go any where else.
 
Ugh,
the 2010 Challenger with an LS1.
How bad does that hurt. Or an abortionized penstar/bowtie... Ugh!!!

I must however confess that my daily driver is a 2001 Pontiac Firebird convertible. Chrysler didn't make a rear wheel drive conv. so please don't give any flack.

In all honesty, I wouldn't mind it if they let Chrysler be Chrysler.
 
A dark day indeed.
I have brought this up to some other people and they have not herd the new's yet.
Thank's whitey for the updates on this bad new's :salute:
 
Should this actually happen, I would fully expect it to stand alone like their other divisions do, Chevy, Pontiac, Buick, Chrysler, doesn't quite sound like it belongs there but what the hey, better than going TU. :thumbup:
 
I just wrote a response on this on the bankruptcy thread. It will be interesting to see how GM plans on pullng this off.
 
stupidasso said:
Ugh,
the 2010 Challenger with an LS1.
How bad does that hurt. Or an abortionized penstar/bowtie... Ugh!!!

I'm thinking it would be the opposite if it happened, Hemi's in GM cars or trucks.


Chuck
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340mopar said:
stupidasso said:
Ugh,
the 2010 Challenger with an LS1.
How bad does that hurt. Or an abortionized penstar/bowtie... Ugh!!!

I'm thinking it would be the opposite if it happened, Hemi's in GM cars or trucks.


Chuck
Click to expand...

Worst case scenario. GM cannibalizes Chrysler for its Jeeps and minivans, both Chrysler strengths in the industry that GM doesn't have, similar to what Chrysler did when they purchased AMC in the 80's. Unimaginable, but possible.
Click to expand...
 
Well, like someone said, if they let Chrysler be Chrysler it would be great. Let them make cars and such. But the GM honchos will have to restructure them alot.
 
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.
 
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.
Click to expand...


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
 
I'd rather GM buy Chrysler than a chinese company, at least it will be american again. I don't see how they would be able to avoid sharing parts. I'd expect to see a chevy-ish mopar. Oh well, I'll drive the old stuff until it's gone, then ride a bike.
 
gts340 said:
I'd rather GM buy Chrysler than a chinese company, at least it will be american again. I don't see how they would be able to avoid sharing parts. I'd expect to see a chevy-ish mopar. Oh well, I'll drive the old stuff until it's gone, then ride a bike.
Click to expand...

i hear ya. id get a dual sport and another gsxr for sunny days! :thumbup:
 
If GM did buy it, and tried to keep the planned production of the Challenger as-is, it could conceiveably go 2 ways............

1. Chrysler fans buy the completed Challenger as the "last great Mopar" of all time, and they sell out like fresh hotcakes, OOOOOOOOOr,

2. Chrysler fans rebel en'masse and refuse the Challenger based upon the principle of the matter, expecting the Chryslers to flat take a nose dive in popularity and investment value due to the GM stigma.....

Who knows...............?

IF the Challenger were left ALONE, and marketed as Chrysler has planned it, I for one would LOVE to buy one...........IF my wallet were that big..........But it probably ain't, and you can be DEAD sure that I won't be selling any classic Mopars to pay for a Challenger that was sold as a 'consolation prize' of sorts AFTER a GM buyout.

I'm a little double-minded about it myself I guess...................

Just WAY too freaky for me to imagine..........that's what happens when foreign powers take over ANY aspect of a purely American Dream.......which the Classics have been............as the "bottom-line" goes, so go the CEO's.............they have little respect for the Mopar name and lineage, as long as their wallets are very nicely lined with "stock options".

Same ol' same ol'.

I'd like to hear some more opinions on the fiasco. :pain10:
 
How can GM buy Chrysler with the money problems they just had, their stock last week was $36 compared to Chryslers $76. Chrysler wouldn't be in trouble if Daimler wouldn't have molested it. GM should leave it alone, they have a huge fan base, just look at events like the Nats, Carlisle, and Las Vegas to start the list off.
 
Last week on a talk show, they were discussing GM's interest in the Hemi tech being why they want to buy Chrysler. Hemi Corvette? Instead of depending on the aftermarket to make a GM fast.. they just buy the company with the fastest engine. So much for...Wimps wear bow ties.

I had a friend tell me last year that GM would be buying the Jeep line in 5 yrs. Looks like it may happen sooner than expected.
 
Didn't the guy running GM now used to run Chrysler back in the 70's and 80's?
 
It ain't over yet, there's a company based in Canada called Magna looking at Chryslers books. They're a large auto parts manufactorer but industry analysts don't think Magna can come up with the money.
 
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