Chrysler still sees GM merger as best bet
December 31st, 1969
Desperate times call for desperate measures and at Chrysler it appears every option is on the table. The Auburn Hills carmaker has been tied with at least five major carmakers in the past six months, even coming close to a merger with Detroit rival General Motors. While such a move may seem a little like the blind leading the blind, Chrysler in its latest viability plan said it still believes a partnership with GM is the "best option for the U.S. auto industry."
Speaking with Bloomberg, Chrysler spokesman Stuart Schorr explained that a GM tie-up “would create a company better positioned to compete with Toyota and other non-U.S. automakers.”
But remember, this is the same company negotiating with Fiat over a 35% acquisition and technology sharing deal. The message being sent to the U.S. Treasury and the Obama administration, however, is that both GM and Chrysler may be dead if they continue to proceed alone.
Chrysler's hope is that with enough prodding, the government may force some kind of an alliance with GM but right now nothing is confirmed. The Obama administration is currently contemplating lending GM and Chrysler a combined $21.6 billion in new loans, and this ultimately could lead to the government persuading GM into an alliance.
The key word here is persuade as GM previously pulled out of alliance talks with Chrysler, citing a desire to focus on its own survival as the main reason. At present both GM and Chrysler claim they are not looking at renewing partnership talks but if such a move is ideal then it may fall on the government to decide upon. So far the Obama administration hasn’t signalled what direction it might take but there’s no doubt that some major changes and restructuring are on the horizon for the U.S. auto industry.
Desperate times call for desperate measures and at Chrysler it appears every option is on the table. The Auburn Hills carmaker has been tied with at least five major carmakers in the past six months, even coming close to a merger with Detroit rival General Motors. While such a move may seem a little like the blind leading the blind, Chrysler in its latest viability plan said it still believes a partnership with GM is the "best option for the U.S. auto industry."
Speaking with Bloomberg, Chrysler spokesman Stuart Schorr explained that a GM tie-up “would create a company better positioned to compete with Toyota and other non-U.S. automakers.”
But remember, this is the same company negotiating with Fiat over a 35% acquisition and technology sharing deal. The message being sent to the U.S. Treasury and the Obama administration, however, is that both GM and Chrysler may be dead if they continue to proceed alone.
Chrysler's hope is that with enough prodding, the government may force some kind of an alliance with GM but right now nothing is confirmed. The Obama administration is currently contemplating lending GM and Chrysler a combined $21.6 billion in new loans, and this ultimately could lead to the government persuading GM into an alliance.
The key word here is persuade as GM previously pulled out of alliance talks with Chrysler, citing a desire to focus on its own survival as the main reason. At present both GM and Chrysler claim they are not looking at renewing partnership talks but if such a move is ideal then it may fall on the government to decide upon. So far the Obama administration hasn’t signalled what direction it might take but there’s no doubt that some major changes and restructuring are on the horizon for the U.S. auto industry.
Chrysler still sees GM merger as best bet
February 20th, 2009
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February 20th, 2009
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February 20th, 2009
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GM and Chrysler are in immediate need of loan funds, while Ford seeks only a standby line of credit
Enlarge PhotoSpeaking with Bloomberg, Chrysler spokesman Stuart Schorr explained that a GM tie-up “would create a company better positioned to compete with Toyota and other non-U.S. automakers.”
But remember, this is the same company negotiating with Fiat over a 35% acquisition and technology sharing deal. The message being sent to the U.S. Treasury and the Obama administration, however, is that both GM and Chrysler may be dead if they continue to proceed alone.
Chrysler's hope is that with enough prodding, the government may force some kind of an alliance with GM but right now nothing is confirmed. The Obama administration is currently contemplating lending GM and Chrysler a combined $21.6 billion in new loans, and this ultimately could lead to the government persuading GM into an alliance.
The key word here is persuade as GM previously pulled out of alliance talks with Chrysler, citing a desire to focus on its own survival as the main reason. At present both GM and Chrysler claim they are not looking at renewing partnership talks but if such a move is ideal then it may fall on the government to decide upon. So far the Obama administration hasn’t signalled what direction it might take but there’s no doubt that some major changes and restructuring are on the horizon for the U.S. auto industry.
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Comments (5 total)
Meet the top commenters on the LeaderboardDumb and Dumber 3
Time for Cerberus to sell Chrysler to Irwin Jacobs (if he's still alive) and let Irv the Liquidator do for Chrysler what he did for AMF. Seems to me most of those brands are doing quite well and at least one, Harley Davidson, have been blow out successes.
Chrysler will be torn apart if they merge with GM. GM will take the reigns and kill of Dodge and Chrysler, leaving Jeep to submit to its mauling.
Chrysler showed really promising products, especially the new 300 and the Grand Cherokee...Just try to drop as many vehicles are needed.
Chrysler needs to work, very much like GM's GMC, Buick, Pontiac dealers
Each brand offer only CERTAIN types of vehicles.
Jeep offer only SUV's
Dodge only offer Light and Heavy duty Trucks and sports cars
Chrysler offer more of a entry to mid-level luxury saloons and coupes
I would have to see GM take Chrysler...
This is still a bad idea, Chrysler, shut up, you may offend Fiat, the only company interested in you
Cerberus: without Fiat, your only mildly valuable Chrysler assets are Jeep and minivans. I can't imagine you'd get a better deal from GM with government prodding, compared to the traditional private equity "strip and flip." surely there must be a Chinese company with more liquid cash than GM?
Spurn Fiat and you will be truly exposed as a one (perhaps one and a half) trick pony.
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