GM/Chrysler Merger

[PeteLeathersac]

Anyone have up to date news on this?.
Rumor is GM has an announcement to make tomorrow Nov. 7'th?.


~ Pete

[Chevy454]

Yeah, the announcement is that they're both *broke*, so neither can afford to buy the other!

The Fed said "no" to a loan/bailout for Gm to by ChryCo...guess the bankers/investors had better "lobbyists"...or at least more $$$ to throw at those who had a vote.

[PeteLeathersac]

Thanks Rob...that may be good news anyway?.

If only Billy Durant was still around, he'd find the dough and shake things into order quickly!.
Sadly the days of guys like him and Kettering are long gone for GM..


~ Pete

[tom406]

I still don't understand how this makes any sense, particularly for GM. What does Chrysler have, besides minivans and Jeeps, that GM doesn't? They both have too many factories and too many dealerships.

I hope this isn't just Studebaker buying Packard, finding a companion to go down with.

[L78racer]

They can get out of the RENCEN in Detroit. They can get out of the Tech Center in Warren (50 year old buildings). Consolidate it all into the newer Auburn Hills location. They drop all of Chrysler's product except the van and Jeep (both maybes). They have already postponed or axed any new developement on any new engines in particular their new small car and its new engine. They would like Toyota to join in too. They can supply the small car product. It can all be built on Chrysler's assembly lines. JMO

[rubbinisracing]

[ QUOTE ]
I still don't understand how this makes any sense, particularly for GM. What does Chrysler have, besides minivans and Jeeps, that GM doesn't?

[/ QUOTE ]

11 Billion Dollars in cash on hand!

I beleive GM has about 10 Billion on hand and this merger may help them last long enough for a turn around to take effect. In the end the government would rather bailout just 2 automakers than 3. GM & Ford will definitely get a bailout as both are too important to the economy, consumer confidence and strategic manufacturing capacity to let fail.

[JRSully]

It's all about the daily cash burn and jobs. Yuo have the new factories in the south, non union, that are operating skinned to the bone, the big 3 have to figure out a way to fund the heavy pension and health care issues due to the terms of the last bloated UAW contract, once that is out of the way, they may be able to go forward with a similar setup the south is using, assuming the industry as a whole gets better. My .02

[MosportGreen66]

How long can the big three operate in the red? Its already been years...

[Donutblue]

Operating in red for the most part is nothing more than creative accounting --

[69Tom]

Well, it looks like they're running out of creative ideas. This is pretty scary. http://news.yahoo.com/s/ap/20081107/...bi_ge/earns_gm