S
Scott G
Guest
Its at about $5.00 a share right now, if the merger happens will GM stock loses all its money, or will it just turn into Chrysler 9and prob make money)?
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J
Jeff S
Guest
Well it depends on how current and potential investors see the deal going down.
If I'm an investor in GM and I know a lot about the Big 3, this is what I want to see happen. I want GM to kill off all of the Chrysler brands, because there is 100% overlap in product development between the two companies. Then I want GM to sell all the plants that Chrysler currently has dedicated to Jeep and Dodge pickups as well as all the engine and transmission plants for their trucks and suv's. Let's be honest, the Hemi is merely a marketing ploy, many import engines are actually Hemi's because the real difference between a standard engine and a Hemi is the top of the cylinder chamber. And I've seen Nissan sedans that have this.
Now, as an investor I want to see GM keep the Chrysler car and Dodge car factories for both the cars and the engines. Why? because GM can convert these factories to produce GM products like the Malibu and the upcoming Volt as well as the Ecotec I4 engine and upcoming I4 engines for the Volt and Chevy Cruze. We've already seen how strained GM's current car factories are with the success of the Malibu, Aveo, and Aura. After this GM needs to use the money gained via the sale of Dodge and Jeep factories to do at least one of several things. 1. Retrofit current truck factories to manufacture cars or smaller crossover vehicles. 2. Increase funding for R&D of Volt programs and Hydrogen Fuel Cell Programs. 3. Save the cash for liquidity in the coming years.
Now as an investor, I need to here these plans from GM right now, not a few months after the merger, but as soon as a merger is complete Rick Wagoner or Bob Lutz needs to call an emergency press conference to tell us their plans.
Now as an investor, if GM did not of these and announced that it would merely add all of Chryslers lineup to its current line, then I would probably panic and sell, as many other investors will. I mean look, GM is already having contract problems with it's people at Delphi , American Axle, etc. If GM brings in Chrysler, it's going to add another parts manufacturer to the bargaining table, Mopar.
Now, I know that there are hardcore fans of Chrysler/Mopar vehicles, but you all need to realize that the market has changed since the 1950's. There is little to no room for product overlap anymore. If you think your product is 10 times better then everyone those of everyone else, then in the real world it will only be 2 times better if even that. For years now Chrysler has been making cars that it believed were merely "just as good" as the competition, and it took its toll on the company.
The American Automotive industry is hurting, and unless the Big 3 can work together rather than working against each other they will have no future. During the 90's it was always GM vs Ford vs Chrysler, then suddenly in the late 90's it became (GM vs Ford vs Chrysler) vs Toyota.
As of lately Chrysler has not been doing justice to the Chrysler name, I mean come on, the Dodge Caliber and Chrysler Aspen? GM needs to absorb Chrysler to increase its liquidity not increase its lineup.
They've finally realized just because they're the #1 auto manufacturer in the world doesn't mean they're invulnerable. This is GM doing what it can to make sure that it and the American Automobile survive, and I will support it if they do it right.
If I'm an investor in GM and I know a lot about the Big 3, this is what I want to see happen. I want GM to kill off all of the Chrysler brands, because there is 100% overlap in product development between the two companies. Then I want GM to sell all the plants that Chrysler currently has dedicated to Jeep and Dodge pickups as well as all the engine and transmission plants for their trucks and suv's. Let's be honest, the Hemi is merely a marketing ploy, many import engines are actually Hemi's because the real difference between a standard engine and a Hemi is the top of the cylinder chamber. And I've seen Nissan sedans that have this.
Now, as an investor I want to see GM keep the Chrysler car and Dodge car factories for both the cars and the engines. Why? because GM can convert these factories to produce GM products like the Malibu and the upcoming Volt as well as the Ecotec I4 engine and upcoming I4 engines for the Volt and Chevy Cruze. We've already seen how strained GM's current car factories are with the success of the Malibu, Aveo, and Aura. After this GM needs to use the money gained via the sale of Dodge and Jeep factories to do at least one of several things. 1. Retrofit current truck factories to manufacture cars or smaller crossover vehicles. 2. Increase funding for R&D of Volt programs and Hydrogen Fuel Cell Programs. 3. Save the cash for liquidity in the coming years.
Now as an investor, I need to here these plans from GM right now, not a few months after the merger, but as soon as a merger is complete Rick Wagoner or Bob Lutz needs to call an emergency press conference to tell us their plans.
Now as an investor, if GM did not of these and announced that it would merely add all of Chryslers lineup to its current line, then I would probably panic and sell, as many other investors will. I mean look, GM is already having contract problems with it's people at Delphi , American Axle, etc. If GM brings in Chrysler, it's going to add another parts manufacturer to the bargaining table, Mopar.
Now, I know that there are hardcore fans of Chrysler/Mopar vehicles, but you all need to realize that the market has changed since the 1950's. There is little to no room for product overlap anymore. If you think your product is 10 times better then everyone those of everyone else, then in the real world it will only be 2 times better if even that. For years now Chrysler has been making cars that it believed were merely "just as good" as the competition, and it took its toll on the company.
The American Automotive industry is hurting, and unless the Big 3 can work together rather than working against each other they will have no future. During the 90's it was always GM vs Ford vs Chrysler, then suddenly in the late 90's it became (GM vs Ford vs Chrysler) vs Toyota.
As of lately Chrysler has not been doing justice to the Chrysler name, I mean come on, the Dodge Caliber and Chrysler Aspen? GM needs to absorb Chrysler to increase its liquidity not increase its lineup.
They've finally realized just because they're the #1 auto manufacturer in the world doesn't mean they're invulnerable. This is GM doing what it can to make sure that it and the American Automobile survive, and I will support it if they do it right.
W
what?
Guest
normally, it would just get exchanged for the stock of the acquiring company.
however, chrysler isn't public. it's owned by a private equity firm.
so you'll probably get a slight premium. probably not more than $1-1.5 above the market price here.
however, chrysler isn't public. it's owned by a private equity firm.
so you'll probably get a slight premium. probably not more than $1-1.5 above the market price here.