DCX seeks sale of Chrysler to...GM?

[Drew Dowdell]

Daimler mum on report it seeks Chrysler sale to GM

FRANKFURT (Reuters) - DaimlerChrysler declined comment on a German magazine report on Wednesday that it was in talks to sell its loss-making Chrysler division to General Motors.

"I cannot and will not go into any further details," Chief Executive Dieter Zetsche told reporters in Detroit when asked about GM. The news conference was carried on the Internet.

Germany's Manager Magazin cited company sources as saying the talks were in full swing but still at an early stage.

link

[aaaantoine]

No. Please, just no.

[FAPTurbo]

It would suck and be totally funny at the same time.

[Northstar]

This isn't going to happen... GM has enough troubles without adding Chrysler to royally screw things up. AND, GM would be "known for having the worst interiors in the industry" (because Chrysler is so terrible at them) when it appears they're starting to make some of the best.

[Flybrian]

An aquisitions of Chrysler would give GM the formidable Dodge Attitude.

That alone is worth considering.

[VenSeattle]

Yeeeeahhhh..... Grrreeeaaaattttt.... and if Ford goes Bankrupt, GM can buy them too

but... for some bizarre reason, I'm going to try and picture this.

Dodge & Chrysler completely overlap the B-P-G trio in every way imaginable.

The only benefit GM would gain from it would be Jeep. It makes sense to have the Jeep and Hummer brands sold under the same roof, so break Jeep off from Chrysler and merge Jeep & Hummer into one division/retail chain. That's a mighty expensive move for just one brand.

[ZL-1]

:rotflmao: rumours are so funny

[Z-06]

April Fool Day is another 45 days away.

[Sixty8panther]

Dodge & Chrysler completely overlap the B-P-G trio in every way imaginable.

Yes... too much overlap. Way too much.

The only benefit GM would gain from it would be Jeep. It makes sense to have the Jeep and Hummer brands sold under the same roof, so break Jeep off from Chrysler and merge Jeep & Hummer into one division/retail chain. That's a mighty expensive move for just one brand.

Jeep vs. Hummer is a BIG rivlary these days. I certainly

do not see them merging... but I guess stranger things

have happened I suppose.

It would be almost as weird as a GM-Ford partnership.

[Z-06]

Well my brother and I were talking the other day about the crisis of Detroit Automakers. He is not at all a car freak, to him cars are utility but should be beautifil.

He asked me a question. "So what if a car company dies?" He said like every other businesses or life in general a company is born and if it is not strong and fit to survive on its own it will be on its path to death. GM is showing some recovery at least an effort. But DC and Ford look like their efforts are muted. Rather than taking it over and taking their mess, why not just let it go if they are not capable of fighting themselves?

[Drew Dowdell]

Well my brother and I were talking the other day about the crisis of Detroit Automakers. He is not at all a car freak, to him cars are utility but should be beautifil.

He asked me a question. "So what if a car company dies?" He said like every other businesses or life in general a company is born and if it is not strong and fit to survive on its own it will be on its path to death. GM is showing some recovery at least an effort. But DC and Ford look like their efforts are muted. Rather than taking it over and taking their mess, why not just let it go if they are not capable of fighting themselves?

because right now GM, Chrysler, and Ford are fighting with one hand tied behind their back with legacy cost rope while the Asians and to a lesser extent the Europeans are fighting with one extra hand <their respective governments>.

[NINETY EIGHT REGENCY]

Report: GM in talks to buy Chrysler

Dale Jewett | | Automotive News / February 14, 2007 - 4:39 pm

DaimlerChrysler is reportedly talking with General Motors about the possibility of GM's buying the Chrysler group, according to the German magazine Manager Magazin.

The magazine cited company sources as saying the talks were in full swing but still at an early stage.

The report came today as DaimlerChrysler AG said it was open to all options for the Chrysler group. Chrysler today unveiled a restructuring plan as it posted a $1.47 billion loss for 2006. That plan calls for cutting 13,000 jobs in the United States and Canada by 2009.

DaimlerChrysler CEO Dieter Zetsche declined to comment on the report.

"I cannot and will not go into any further details," Zetsche told reporters in Detroit, where he announced the automaker's 2006 results.

A GM spokeswoman also declined to comment on the report.

DaimlerChrysler has retained JPMorgan Chase & Co. to consider options for the Chrysler group, the Detroit News reported this afternoon.

In a report on its Web site, the newspaper quoted unidentified company sources as saying the automaker had hired the investment bank.

Reuters contributed to this report.

[Flybrian]

Jeep vs. Hummer is a BIG rivlary these days. I certainly

do not see them merging... but I guess stranger things

have happened I suppose.

They both have a common ancestor and a common heritage in reality.

In any case, you could just about dump the entire D-C-J lineup except the Sprinter, Wrangler, Grand Cherokee, Liberty, Patriot, Caliber, and minivans. Those are the only things really worth a damn.

[Intrepidation]

I would personally find a way to German and kill everyone that runs Mercedes. Anyway instead of trying to find ways to dump Chrysler they should fix it. It's not that hard. Update the engines, make the 6-speed more available across lineups, simply engine choices in various cars (why does the Avenger and Sebring need 3 engines?) and finally (most importantly) make good interiors. Oh and I guess work on designing nice looking cars again (fire whoever made the Compass and Sebring).

[NINETY EIGHT REGENCY]

I only reported what I read. I would not say I "believe" this. This would be more of a headache for GM. The only reason I see do this would be for the minvans and that is a shrinking market. There would be too much overlap , plus GM is not finished fixing it own divisions. It is probably a rumor based on fear. If Dr. Dieter Zetsche from Mercedes Benz/Daimler Chrysler wants the unions to give in, you threaten them will selling Chrysler and play hard ball. I really do not know.. I just have a hard time believing this in the first place.

Edited February 14, 2007 by NINETY EIGHT REGENCY

[Flybrian]

simply engine choices in various cars (why does the Avenger and Sebring need 3 engines?)

IMO, it isn't that they have three engines, its that the midlevel engine blows and the top engine should be the midlevel engine.

[Sixty8panther]

Rather than taking it over and taking their mess, why not just let it go if they are not capable of fighting themselves?

Because I'd rather not see 33% of what's left of the American Automotive Industry

go down the toilet. I'd much rather see Toyota/Lex/Sci, HondAcura, Mitshubishi,

Kia/Hyundai & VW all go out of Business than to loose Mopar.

Oldsmoboi's last point is 75% of the reason WHY I feel that way.

FLY:

You think the Liberty Patriot & Caliber have redeming value but

the Charger, Magnum & 300 do not matter?!?!?! :blink:

Edited February 14, 2007 by Sixty8panther

[DetroitNut90]

Aside from the RT vans, I can't really think of what the Chrysler Corp. has that would peak GM's interest.

[dcs]

Anything is possible.

After all Chrysler does have mini-vans that sell, and are not as expensive as Honda/Toyota

And RWD cars on the road now..the rest of Chrysler autos could be chopped.

who knows?

[NOS2006]

Chrysler could really benefit from GM, but I'm not sure the opposite is true..

[Flybrian]

FLY:

You think the Liberty Patriot & Caliber have redeming value but

the Charger, Magnum & 300 do not matter?!?!?! :blink:

Why would you want a Charger over a G8? A 300 over a new (or in some cases, current) Lucerne? The Magnum just doesn't sell that well.

They don't matter in terms of an aquisition because GM has/will shortly have product that exceeds those vehicles on a GM platform. Even if they were equal (and they're not), dump the older ones.

All the vehicles I listed fill gaps in GM's lineup (SXT Calibers = Vibe GT; minivans) or are just too good to let go (Core Jeep brand). The Sprinter is an excellent companion to GM's cargo/15-passenger vans.

So, no, the LX cars do not matter one bit in this far-fetched, hypothetical, and will-never-happen possibility.

[Oracle of Delphi]

The Jeep brand will fit very nicely within Hummer. This family was split apart by AMC, perhaps GM can put the family back together again.

[aaaantoine]

GM would get nothing but headaches from buying the Chrysler group.

- GM is barely profitable at this point.

- Chrysler is losing money pretty fast.

- Chrysler and Dodge cars compete almost directly with Chevy, Pontiac, Saturn and Buick.

- Buying Chrysler group means getting a bigger chunk of the UAW... Which means more pensions, job banks, and union wages.

[Sixty8panther]

5-cylinder diesel vans are better suited for the EU than the USA but the Sprinter is not the issue.

1. Where was the G8 TWO YEARS AGO when the Charger hit the streets?

2. Dude... never in a million years in an alternate universe would I buy a

Lucerne over a 300C. Never. The Lucerne is quite lame IMHO.

[Flybrian]

1. Where was the G8 TWO YEARS AGO when the Charger hit the streets?

Non-issue. Its irrelevent now that GM has a better car on a newer platform. Again, we're talking about mergers and getting rid of overlap and what's best for the highest bidder (i.e. GM). Charger is a fleet princess anyway.

2. Dude... never in a million years in an alternate universe would I buy a

Lucerne over a 300C. Never. The Lucerne is quite lame IMHO.

Dude...doesn't matter. Again, hypothetically, GM has its own models of mediocre Chrysler products. The only worthwhile thing for GM out of this deal would be, I feel, the vehicles I mentioned. What good does the hemi do GM? None. What good does an older Mercedes-sourced RWD platform do GM when its in the beginning stages of ramping up its own? None. What good do two sedans whose volume six-cylinder models end up in fleets and a wagon that no one buys do for GM when they're trying to curtail rental sales? None. This isn't even mentioning the overstocked pickups and midsize cars and SUVs Chrysler can't give away.

Is doesn't matter if OMG TEH LUZERNE IZ TEH SUK!!!! The statement I made was "Those are the only things really worth a damn [to GM]," and regardless of what 'hit the streets' when, those are still the only things worth a damn to GM.

[VenSeattle]

Jeep vs. Hummer is a BIG rivlary these days. I certainly

do not see them merging... but I guess stranger things

have happened I suppose.

It would be almost as weird as a GM-Ford partnership.

68, name a pair of vehicles that directly compete between Jeep and HUMMER... The closest is the H3 & Jeep Commander, but they're targeting very different markets. Besides, the Commander is already out the door.

Most (if not all) of Jeep's business is below $40k. Most of HUMMER's is above $40k. They're a perfect match to be paired up.

[balthazar]

Boy- daimler (mercedes) really screwed up ChryCo, huh?

[CSpec]

There is no way this is going to happen. Chrysler sucks, GM doesn't.

[Northstar]

Buying just Jeep would be fine. Buying anything more than just Jeep would be dumb.

[daves87rs]

There is no way this is going to happen.

This is just another rumor to get GM's stock price up-that's about it.

GM can't afford Chrysler...one only has to look at the numbers...

I could see them buying a divsion (Jeep, maybe) or Van line, engines, or something....but not the whole thing.

GM would have to be just about the dumbest company on earth to buy that much of a company-I don't want to think about the mess it would cause...

Won't happen.

[daves87rs]

Buying just Jeep would be fine. Buying anything more than just Jeep would be dumb.

Agreed.

[PurdueGuy]

TWO DOLLA!

While Chrysler is worth far more than that, it's not to GM. It's headaches upon headaches, and even at two bucks, would be questionable about being worthwhile to have to sift through. All the product cuts, plant closures, etc would be devastating to GM's PR, and expensive. While the brand nameplates hold value, most of the product nameplates hold far less, and the product nameplates that do hold value are already being milked by recent Chrysler products that mostly wouldn't jive well with GM products.

[FAPTurbo]

Chrysler sucks, GM doesn't.

I ought do a search and see how many times the words 'suck' and 'Chrysler' come up in the same sentence.

Should be fun!

[SimonDavid]

I agree GM shouldnt buy Chrysler outright.

But if they can do some joint product development and get a new minivan and maybe a Colorado replacement quickly and cheaply, then how can it hurt?

Maybe this is a downpayment on a broader alliance with DCX - they are already partners in hybrids, which will be very important in a few years time

[ZL-1]

This is just another rumor to get GM's stock price up-that's about it.

There's more of a tendency for the potential buyer's stock price to drop on acquisition news. I don't have much time to check stock charts right now, but it would be interesting to see a GM and DCX comparison on the same chart after the news came out :AH-HA_wink:

[Chicagoland]

Jeep is only brand worth keeping. And I think the Zeta RWD platform is better than the LX, so they can sell the rest of Mopar to China.

[Sixty8panther]

I guess it's all silly to even discuss... my point was that the 300C/Charger are about the only

cars that I care about from DCX, but yes, I agree the LS-series V8s are more valuable, and

have a lot more stayig power than the semi-HEMIs. Still I think almost all non-LX Chryslers

are lame, including the Minivans. They suck in terms or transmission problems like 99% of

FWD Mopars. It's been a quarter century and it seems Chrysler still can't make a FWD trans,

that will last more than 40,000 miles. Forget bad interiors, crappy transmissions are still the

biggest reason why Mopars have a poor reputation, they keep saying the problem is fixed

but I've been hearing that since the late 1980s.

[carman21]

We could afford it by killing Dodge, replace Saturn with Chrysler, and selling off Saab.

This would restre GM's orginal 5 brand liine-up.

Chevrolet

Pontiac

Chrysler(Oldsmobile)

Buick

Cadillac

I'd rather have Chrysler between Pontiac & Buick than Saturn. At least Chrysler is a decent replacement of Olds.

Chrysler sells 500k per year, thats a good boost in GM's sales, even while chopping off Dodge and Saturn.

GM better buy it or Toyota might to jump ahead of GM in the US and globally.

If GM could benefit from a Chrysler buyout, I'm for, otherwise it can only delay GM's rebirth.

[carman21]

Perhaps GM should just buy Chrysler and Jeep and sell off Dodge & Saab. Oh yeah, and replace Saturn with Chrysler.

Edited February 15, 2007 by carman21

[Flybrian]

Still I think almost all non-LX Chryslers are lame, including the Minivans.

The simple fact is Chrysler has minivans and GM doesn't. Even if they're not world-beaters, they exist and people buy them. That's reason enough to keep.

Saturn is in a better position than Chrysler right now, speaking of which. Saturn has an entire line of appealing products while Chrysler has two trim levels of one car that are presentable.

[Satty]

I guess it's all silly to even discuss... my point was that the 300C/Charger are about the only

cars that I care about from DCX, but yes, I agree the LS-series V8s are more valuable, and

have a lot more stayig power than the semi-HEMIs. Still I think almost all non-LX Chryslers

are lame, including the Minivans.

What you think doesn't matter. What I think doesn't matter. Hell, what Fly thinks doesn't matter. What matters are the however many million people buy new cars every year (wait, I just did that so I guess I matter a little) because they're what keeps companies alive. And they're buying Camrys, Accord, F-150s and Caravans. Lame? Maybe. Toyota will sell more Camrys in two months than Pontiac will sell G8s in the first year. Lame? Maybe. Dodge will sell more Caravans/T&Cs in one year than Chevy will sell Camaros in 3 years. Lame? Maybe. But its reality.

[Camino LS6]

I would love to see Chrysler under American ownership again, I just don't think the owner should be GM.

[hyperv6]

I am not worried as GM will not buy Chrysler.

But I would like to see them Buy Jeep and toss the Liberty, Compass and 4 door Wrangler. Combine the original type Jeep with Hummer and offer the ultimate American 4x4 division.

If they want too much for Jeep make em throw in the rights to the Mini Van or build one for GM. If Pontiac can selll Toyota's Chevy can sell a Dodge van. I would make them change the engien to the 3.6 since all of Chryslers put out blue smoke after a while.

Hmm Could they be talking to Chrylser about a rebadged Dodge minivan. If you can't beat em join em. GM could use the van and Chrysler can use the money. They don't have to be from Japan to be a partner.

[roadwarrior]

Hmm Could they be talking to Chrylser about a rebadged Dodge minivan. If you can't beat em join em. GM could use the van and Chrysler can use the money. They don't have to be from Japan to be a partner.

I would only say that GM should "rebadge" a dodge minivan if they dropped their own engine/trans combo in there. Chrysler trannies are absolute junk (my dad's buddy has replaced 5 trans's in 100K miles between 2 vehicles), and a good, modern GM engine would be a better powerplant.

[Drew Dowdell]

I would love to see Chrysler under American ownership again, I just don't think the owner should be GM.

We at C&G should pool our money together and buy Chrysler. Since we're all American car buffs we could name the company American Motor Company. Yeah! ..... I can see it now! :thumbsup:

[VenSeattle]

We at C&G should pool our money together and buy Chrysler. Since we're all American car buffs we could name the company American Motor Company. Yeah! ..... I can see it now! :thumbsup:

Heh... You never know... Kerkorian could be back in the market for Chrysler since the GM deal didn't work to his liking.

Seriously though, this chould be the reason GM backed off from developing Lambda minivans. There has to be a pretty good offer on the table for GM to consider giving someone a copy of the Suburban. I'm wondering how many versions of DCX's minivans are needed in the US. VW is getting one pretty soon... now GM?

[ZL-1]

Would Daimler sell the Chrysler Group to Tracinda?

[VenSeattle]

Would Daimler sell the Chrysler Group to Tracinda?

That's exactly what I'm wondering. He could finally get his wish if he's willing to pay enough.

[hyperv6]

The latest rumor is that GM would make a deal to partner with Chrysler to give them a SUV base on the Suburban.

I know it would bring money into GM but how would it effect their own sales if gas goes back up this summer.

I would like to see the details on what GM would get in return for such a deal if this is true.

Just have to wait for some kind of anouncement to see what this is all about.

[Sixty8panther]

Satty:

If you were living in Europe in 1943 it was a $hitty place to be. But it

was "reality" to people, nothing you could do, just deal with it, right?

Still does not mean I have to be happy about it!

While that's a pretty drastic example I'm just saying the average car

these days is just disgusting. We as Americans have become

complete pu$$ies. Most Lexus owners can't even change a flat tire &

need back up sensors to make sure they do not drive over their kids'

bike when they're backing out of their driveway. I think we should all

be fu**ing ashamed of ourselves for making the Camry the best

selling car in the USA. Disgusting!

As far as me, EVERY single car purchase I have affected or my family

has made has been GM. Even our best friends Chris & Izabella when

they looked around for new cars to buy and trade Chris' 1995 Tercel

in on asked me for advice I did my best to keep their new car GM, &

if not then at least American. If it had not been for me they probably

would have just defaulted to a Corolla but instead they actually

went to a few dealers other than just Toyota and bought a 2005

PT-Cruiser. 45,000 miles later they're VERY happy with their decision.