GM and Chrysler in merger/buyout talks?

[Kryten]

http://news.bbc.co.uk/1/hi/business/7664866.stm

If that happens I think it could be the biggest company merger yet? That would make for one massive car manufacturer in the US. It kind of makes sense now as Chrysler are mostly owned by a private equity company after Daimler/Mercedes gave up their stake. Would not have much effect on the UK car market though as Chrysler only sell **** cars over here (Dodge brand and Jeep included), but GM owning Vauxhall and Saab means there could be some effect in the future. Although knowing how sensetive to brands some US buyers are (hence the badge engineering that still exists over there to some extent) they may try to keep them as seperate as possible, but would still expect to see shared platforms underneath.

From a financial point of view, I think it could be good for the GM stock as its going to give them an even stronger position over Ford, Honda and Toyota in the US and hopefully an even cheaper development costs etc.

Of course the big issue with mergers like this in the US are the unions who have a huge amount of clout :|

[RobDickinson]

IMO world car making is going to be a very hard business to be in for a while

[Coolio]

Doesn't GMC have the issue that 20% of all revenue earnt is going towards pensions?

[NicolaUK]

Chrysler only sell **** cars over here (Dodge brand and Jeep included)

You are such a mark when it comes to cars, as a Dodge Caliber owner for over 2 years now, your opinion is just that - **** :p

Great car, great price, great service - they get a :thumbs: from us.

[CLH]

Ultimately quite sensible. Hope that they now plough their combined research into future fuels.

[Kryten]

You are such a mark when it comes to cars, as a Dodge Caliber owner for over 2 years now, your opinion is just that - **** :p

Great car, great price, great service - they get a :thumbs: from us.

And probably worth about 30% of what you paid 2 years ago ;) The newer Dodge cars are better than previous, but the martials used in them (in the US anyway) are very low rent.

[daveyb]

GM make 24 different types of bonnet catch; other manufacturers get away with 3.

Nuff said.

[splobber]

GM make 24 different types of bonnet catch; other manufacturers get away with 3.

Nuff said.

Really? I won't be buying one of their cars again now I know that.

[daveyb]

Bonnet catch advice is free Splobber; but if it's windscreen trim advice you're seeking that's a different matter....

[NicolaUK]

And probably worth about 30% of what you paid 2 years ago ;) The newer Dodge cars are better than previous, but the martials used in them (in the US anyway) are very low rent.

I honestly don't think so but TBH we didn't buy it to let it sit garaged in pristine condition, it's done 44,000 miles in two years and is getting used to it's full potential which was the whole purpose of buying it. We're more than quids in with the car allowance paid and the business mileage claimed, it's not exactly costing us anything :D

So far it's been fantastic, the only gripe I would have is the high cost of tyres at £150 a pop but we knew that so can't complain really.

[Kryten]

To be honest they have not proved anywhere near as bad as the old Neon it replaced. The interior still is too cheap feeling for my liking, but the diesel engine is decent.

Anyway back on topic, I think that GM and Chrysler deals will need a government intervention to get around copmetition laws? And of course someone to deal with the unions who could well be the biggest hurdle in a deal like this as they will not want to risk any job losses at all despite it probably coming to a point of some job losses and pay cuts or the company collapsing :|

[daveyb]

Thing is, GM certainly are running out of free cash. The bonnet catch phrase is a disdainful statement issued about by the brokers in N.America/Canada.

The finance options dont look good for GM at the mo, and they are just seeking protection options.

[Butch Coolidge]

Looks like the Alitalia story. Lots of car makers can be interested by the ailing company.

Renault-Nissan is apparently in talk for quite a while now. Not sure what they will gain from it as Renault-Nissan is already quite complementary and sell already in the US thru Nissan.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081014/AUTO01/810140380/1148

[njc]

I read an article somewhere the other way stating that the market capitalisation of GM is less than the cash it has in the bank. Same for Ford.

That's a pretty bad state of affairs.

[Dick Long]

The US car makers' dilemma is that the cars that have served them as cash cows for years - big pick-ups and SUVs - are increasingly unpopular. New sales are through the floor and no-one wants them as trade-ins.

The market now demands smaller efficient cars which the Yanks basically don't do. They do have suitable models built by their European subsidiaries but these are higher quality cars which cost much more to make. Hence although GM imports the Astra for Saturn it's as a premium model, and Ford sticks with its US home market Focus which is far inferior to the more costly Euro Focus. The Japanese can bring in the Yaris and the Fit (Jazz) but they're priced higher than many bigger US cars, so still have to pushed hard.

Chrysler are in particularly deep doos as they're refusing to lease their own cars (because of lousy residuals) and so other leasing firms are saying they won't either. The pick-ups and SUVs coming in at the end of 3 year leases are causing huge losses for all makers as they're actually worth far less than their projected values.

On the Caliber issue, I have to side with Kryten. We had a new one a couple of weeks ago as a rental (it's the base model rental for Thrifty and Dollar) and took it back next day. The interior had the nastiest plastics I'd seen in years and a tyre warning light kept coming on, even though nothing was wrong. Swapped it for a PT Cruiser which I actually quite liked especially the retro interior in silver and electric blue!

[Mandrill]

GM have started laying off people

http://news.yahoo.com/s/ap/20081016/ap_on_bi_ge/gm_factories;_ylt=AsaOQzP1mvHnLExTxtyyYPis0NUE