GM-Chrysler Merger?

[Tuna]

It appears that GM is in discussion with Cerberus about acquiring Chrysler. Jayski's Silly Season site ( http://jayski.com/cupnews.htm ) is reporting that siting people at the Wall Street Journal. :confused

Anybody for a Hemi powered Vette?

 

[vett boy]

This was before the happenings of the past two weeks.GM can barely keep it's doors open .They (GM) are on credit watch ,where would they get the money.

 

[Hib Halverson]

(snip)

Anybody for a Hemi powered Vette?

Hopefully, that will not be the result of such a merger. The Gen 3/4 engine family is a better choice.

In fact, the Hemi's short block was based closely on Chrysler's benchmarking the LS1. I mean...what better way for Chrysler to get a great new V8 in a short time and limited development cost. Also, the so-called "Hemi" head (which actually is not truly a hemispherical combustion chamber head) is also based closely on Chrysler's benchmark of the LS1 head. For marketing reasons, Chrysler went to a kinda-sorta hemi chamber and, as usual with hemi chambers because they suck for emissions, Chrysler had to go to two spark plugs.

If a GM/Chrysler was the result, the first thing they oughta do is deep six the Hemi and put Gen 4s in all Chryslers trucks but....that won't happen because truck buyers have been fooled so long by Dodge's marketing that dropping the Hemi for a better engine, would hurt Chrysler full-sized truck sales more than they already have been.

A different perspective?

Ok. Try this. Product-wise, Chrysler has little to offer GM other than, once GM owns Chrysler, the advantage of being able to discontinue a lot of products which compete with GM's and get them off the market.

With an economy in a deep recession, that might be a wise idea.

The world doesn't need the Dodge Viper or Hemi Rams but it does need more Corvettes and Silverados.

 

[jrose7004]

Are 2 big broke car makers better as 1 big broke car maker?

 

[minifridge1138]

Hib is right: Chrysler hasn't made a true Hemi in a long time. But the Hemi name is so well known that they started putting it on high powered engines even though they didn't have hemispherical combustion chambers.

So if GM and Chrylser did merge, I think you'd still see the Hemi name but it might just be the name on the valve covers of a gen 4 motor.

If they do merge, they will have to start making cuts. Plant workers will find themsevles unemployed. So will most of middle and upper management.

 

[Hib Halverson]

I will say....in Chrysler's defense....the head design on the current Hemi while not having a true hemispherical combustion chamber, it's close and not a "normal" wedge-shape as is the head in the Gen 3/4 GM family.

But, when you lay a bare LS1 head and a bare Hemi head on a bench and, in your mind, subtract the quasi-hemispherical chamber and the two spark plug holes, the resemblence of the Chrysler head to the GM head is uncanny.

Same is true of the cylinder case

 

[Tuna]

If anyone read the Jayski article, you would have noticed that Cerberus owns 51% of GMAC (GM owns the other 49%) and 80% of Chrysler. Cerberus appears to be willing to trade Chrysler for the rest of GMAC. That would get Cerberus out of the automotive business where they don't have a clue in the first place. It would not cost GM anything and they could get rid of one Detroit competitor.

Of course the latest down turn in the stock market has put a hold on all these negotiations.

Other news is that GM will accelerate closure of some truck and SUV plants and other support facilities in the short term as a means of avoiding bankrupcy filing.

GM has too many brands and toooooo many dealers for where they are in the market. Filing bankrupcy may be the fastest way to turn GM around as that would give them a chance to void lots of dealer contracts and union contracts and get GM closer to a level playing field.

Cerberus wants out of the car business and is looking for a graceful way to exit without looking like fools. Nissan probably hasn't offered them enough money and trading for GMAC (before the stock market crash) probably looked like the best deal to persue.

Additionally, the hemi remark was just to get your attention. The current hemi is a marketing ploy and not that good in the first place. I'm not a fan of this generation hemi and it doesn't hold a candle to the Hemi of the '60s ( the 426 Hemi was powerful but it also weighted a ton though).

 

[BruceBed]

It appears that GM is in discussion with Cerberus about acquiring Chrysler. Jayski's Silly Season site ( http://jayski.com/cupnews.htm ) is reporting that siting people at the Wall Street Journal. :confused

Anybody for a Hemi powered Vette? [/quote

Charmin and Cottenelle are going to merge with them and the're all going down the crapper.

 

[Tuna]

Charmin and Cottenelle are going to merge with them and the're all going down the crapper.

FedEX and UPS are considering a merger also. If so, they will be called FedUP. :W

Which is how most of us feel right now.

 

[BruceBed]

FedEX and UPS are considering a merger also. If so, they will be called FedUP. :W

Which is how most of us feel right now.

:L:L:L:L:L:L:bash

 

[Patrick]

If anyone read the Jayski article, you would have noticed that Cerberus owns 51% of GMAC (GM owns the other 49%) and 80% of Chrysler. Cerberus appears to be willing to trade Chrysler for the rest of GMAC. That would get Cerberus out of the automotive business where they don't have a clue in the first place. It would not cost GM anything and they could get rid of one Detroit competitor.

That's how FoxNews has been covering the story, as well. At a time when the credit crunch has affected the ability of dealers to finance customers for cars, I question the wisdom of GM relinquishing its financial services arm.

GM has too many brands and toooooo many dealers for where they are in the market. Filing bankrupcy may be the fastest way to turn GM around as that would give them a chance to void lots of dealer contracts and union contracts and get GM closer to a level playing field.

United Airlines has a big presence here in Denver, and went through a bankruptcy after 9/11. I think they emerged from that as a better company, only to be hit with skyrocketing fuel prices.

I think if GM files for re-organization, they could also emerge as a better company. The commonality between GM and United Airlines is that both require fuel as a component to the product/service they offer the consumer. Unless we begin exploring for domestic oil reserves of the Outer Continental Shelf and in ANWR, the cost of fuel will ultimately kill both companies.

Now, before people start chiming in about electric vehicles or alternative fuels, I have to point out that barring some quantum level break-thru in those technologies, these have limitations. Right now, I don't think most electrical vehicles can go more than 100 miles without needing a recharge, for example.

 

[L48]

If GM buys Chrysler and dumps GMAC, they will be ahead of Toyota in sales. If GM buys Chrysler then goes bankrupt, they will just reogranize and come out - ahead of Toyota in sales.

 

[JohnZ]

GMAC has become a millstone around the neck of both Cerberus and GM. Up until 18 months ago, GMAC made BILLIONS every year, and covered GM's continuing massive losses in North American Car & Truck Operations for over 20 years to make GM profitable overall; GM hasn't made a profit in the car & truck business for decades.

Right after Cerberus bought 51% of GMAC, the ResCap (residential mortgage) division tanked due to the sub-prime mortgage mess, and GMAC overall has LOST billions since (for the first time in history); that grief is shared 51%/49% by Cerberus and GM respectively. I'm sure both of them would like to be rid of GMAC.

 

[Hib Halverson]

It wasn't until this morning that I carefully re-read some of the reports about this and they say that the talks between GM and Cerberus about a GM purchase of Chrysler were ongoing but were suspended when the stock market began to tank last week. They have not been resumed. It just might be that the deal is dead at this point, but once the story of what happended came out, it had legs.

Chrysler has nothing of value other than the "Jeep" Brand.

It's full-sized truck platform is inferior to the GMT900. It's mid-sized truck platform sells worse than does GMs. Its high-sports platform is inferior to the Corvette. GM doesn't need a second sporty coupe as the one it will introduce next year is better. Chrysler has no useful small car platform. It's mid-sized and full-sized car platforms are obsolete. GM doesn't need any more plants, workers or dealers because it already has way to many of each.

The only reason GM might want to buy Chrysler is that which is suggested above. It could make a kinda-sorta trade of the rest of GMAC for Chrysler, then kill everything but Jeep and fold HUMMER into a new HUMJeep brand.

 

[Scottsredvette]

The only reason GM might want to buy Chrysler is that which is suggested above. It could make a kinda-sorta trade of the rest of GMAC for Chrysler, then kill everything but Jeep and fold HUMMER into a new HUMJeep brand.

So, would it be called a HUMp or a Heep????

 

[crowvet]

FedEX and UPS are considering a merger also. If so, they will be called FedUP. :W

Which is how most of us feel right now.

Hey I heard that FoMoCo and Mopar are considering a merge. They will call it MOFO