GM to merg with CHRYSLER?

[Dave F.]

Re: GM to merg with Ford!

Forget all this talk about Chrysler. They really wanted to hook up with Ford!

http://tinyurl.com/4dehf6

-Dave

[Tom M.]

Re: GM to merg with Ford!

Forget all this talk about Chrysler. They really wanted to hook up with Ford!

http://tinyurl.com/4dehf6

-Dave

that would be a better deal

[Dave F.]

Re: GM to merg with CHRYSLER?

Yes, but the moral ramifications could be too much for some people to bear.

-Dave

[John H.]

Re: GM to merg with CHRYSLER?

Well, if they do, I'm covered - I retired from both of them.

[Dick W.]

Re: GM to merg with CHRYSLER?

Cerberus and Daimler have written the value of Chrysler down over 50%. They might be glad have have someone take it off their hands at any price.

[John H.]

Re: GM to merg with CHRYSLER?

I'll bet that Cerberus Board meetings with Steve whatsisname (Chairman) aren't very pleasant. They bought 51% of GMAC from GM (GMAC has made BILLIONS every year and more than covered GM's 25-year-straight massive losses in North American Car & Truck Operations like a money printing press up until 18 months ago), then GMAC's ResCap (residential mortgage) division tanked and GMAC overall is now LOSING billions. Then Cerberus bought Chrysler, which continues to lose money, although cash flow is positive and Cerberus says they're "on plan" to their objectives.

[Bill M.]

Re: GM to merg with CHRYSLER?

Saturday morning Detroit Free Press reports that Cerberus offered Chrysler to GM in return for the 50% of GMAC that GM still owns (Cerberus owns the other 50%).

[Chuck S.]

Re: GM to merg with CHRYSLER?

Saturday morning Detroit Free Press reports that Cerberus offered Chrysler to GM in return for the 50% of GMAC that GM still owns (Cerberus owns the other 50%).

Yeah, that's right...I was surprised to learn that Chrysler owns 51% (controlling interest) in the company long associated as the dealer financing option for GM cars, and with GM in it's name.

Now, for the $64,000 question:

Q: Given the forseeable economic climate (higher energy costs, frigid credit markets, low vehicle sales)...Two years from now, would you rather be a car company?...Or a finance company?

A: The correct answer is Cerberus' answer...a finance company. Who wants to be a bigger car company with outdated products for the car market right now? As John said, GMAC paid the bills when car/truck sales weren't delivering the goods. If Chrysler wants all of GMAC, I would sell it to them...for hard cash only

The financial companies are going to recover quickly...almost from the time this "crisis" begins to resolve itself with government help. Being a car company for the next decade, especially one behind the curve on suitable products for the market and compromised owner loyalty, is going to be an "unprecedented challenge".