Why would GM actually want Chrysler?

  • Thread starter Thread starter iamacarguyru
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iamacarguyru

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The usual reason is to be able to share platforms but Chrysler is using many of MB's platforms and GM will not be buying platforms from MB. The only other reason would be to get Jeep. They just sold Hummer so replacing it with Jeep makes little sense. Trading GMAC for Chrysler's finance arm makes little sense either.

Can anyone tell me why they would buy Chrysler?
That makes no sense either. Combining one company that is loosing money with another that is loosing money will not make either of them profitable.
Oops, my mistake. Hummer is not sold but is for sale, as I undertand.
Oops, my mistake. Hummer is not sold but is for sale, as I understand.
 
GM is in no shape to buy Chrysler.

The thinking is that Chrysler might be interested in trading their remaining 49% stake in GMAC to Cerberus, which owns Chrysler.

Cerberus is private, has tons of capital, and can recognize losses without worrying about shareholder revolts. Being private is a luxury in a climate like this, and it allows them to accept deals that public companies can't afford to accept - namely taking a larger stake in a financing company with huge levels of toxic debt.

And while each company may be unprofitable at the moment, combining the two would give the two companies significant synergistic savings (especially in sales and marketing), and give them a lot of power of UAW - they could potentially even break the union, which would be good for everyone.

And by the way, GM still owns HUMMER - they didn't sell it.
 
Survival. At this point they would probably almost make a deal with anyone that would have them.
 
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