vrazzhledazzle

Dude that seem like a good idea. Would it work?

Earlier on either this or last page I posted four private equity firms that might buy Chrylser. Since we seem to agree that Chrysler would benefit much more that GM from a potential merger/sale unless GM has money to pump into Chrysler group..(in which case GM would make money from a potential buyout) WHAT IF Chrysler was bought by one of these equity firms. They provide the funding (healthcare costs, all other money to take them out of the red) as well as funding for development costs (design) AND GM can provide the powertrains (engines, transmissions, ect.)GM gets paid for this and also get a huge stake in Chrysler and at the same time manages to keep it out of the hands of China or other rival automakers who want a bigger presence in the US

Many of us, including myself, don't want Chrysler to be bought by GM. However, it seems there is a fair likelyhood of that happening which is why we are "entertaining" the idea. From what we know, it doesN'T make good business sense, but, think of it this way: It keeps a major part of the US auto industry away from competitors hands, especially the Chinese and Koreans (who might soon be as big of an enemy as Toyota). Keeping Chrysler intact even under new owners will save jobs, that's after the impending 13,000 cuts though. Actually buying Chrysler will keep GM #1 for years to come (depending on what they do with it), but I do pray to god that GM doesn't have the mentality of 'anything to remain #1"...that would make them no better than Toyota. I agree, product integration is too complicated, requires too much money, and its just flat out stupid. That's why I was suggesting that Chrysler should remain a seperate corporation, UNDER GM, creating vehicles using components FROM GM. There won't be additional platforms other than the ones currently under development. Development costs for Chrysler will be minimal because they will be spread out throughout GM which would include all GM brands as well as the three seperate Chrysler brands. That's why I suggested selling all '06 leftover Chrysler inventory to fleets (an article estimated 50,000 Chrysler vehicles from 2006 are looking for buyers - that's a pullback of 50,000 of GM cars that will be sold to fleets...a much needed reduction). I don't recall anyone saying Chrysler is technologically advanced... minivans, Jeep, LX cars, among other things are CG's advantageous things. That's why GM would drop its own engines, interiors, ect. True, true, true. Chrysler deserves to be its own American corporation again... wishful thinking. That's the idea and the best possible scenario...an american equity company buying it, but I'm afraid those types of people will mess it up to the point where it will die completely.

I read something similar that mentioned 4 US private equity groups that might be interested. http://www.chryslerweblog.com (scroll down a little bit when you open the link)

But they won't need to spend much on development costs. After the current Chryslers' model runs are over, GM will put them on their own newly developed platforms, drop their own new engines, transmissions, use similar interior materials and parts, ect. The development costs will be spread across all GM brands as well as the Chrysler brands. Of course, we don't want badge-engineered ex/interiors so they'll spend minimal development costs on differentiating everything and upholding brand's image (think Enclave - Outlook - Acadia or Sierra-Silverado-(Ram?) or Zeta=Charger,300,G8,RWD Buick) In addition, Jeep is a niche brand that doesn't directly compete with any GM brands. Chrysler's image (near-luxury) can be made different from Buick's (near-luxury performance). Wouldn't you like to see sporty Buicks again?

This is NOT mine so I'm not entering it in the competition, but I thought this was very good...a little inspiration to everyone.

That would be the easiest. There is an article I posted on earlier (its mid-way thru page 4) that says analysts think there's a 50/50 chance of GM buying Chrysler. Now that Hyundai and NissanRenault are out the chances are much higher. Unless someone steps up, this likely WILL happen. GM will buy Chrysler.

That sounds good as long as they don't kill Pontiac and GMC just to keep Dodge around. Everyone can be happy if they keep Chrysler and GM seperate.

Well not exactly half, but if they pay 5 billion for Chrysler, even if they can get $20,000 per car, that's 1 billion which would be 20% of the purchase price. (If they can get Chrysler for 5 billion, I'd say go for it). That's a lot of IFs, but if some of the things we're talking about are true, it doesn't seem like Chrysler is as bad of a deal as we thought it was. And the best part? Chrysler doesn't go to the Chinese, Toyota, Nissan, or anyone else but back to America where it belongs.

I got mixed up with the '07 Sebrings (which also aren't very competitive, but they represent exactly what me and you we're saying - with minor tweaks such as redesigning the rearlights and changing the engines and lots of other small things like that, GM can make the car pretty decent and it will be good enough until they completely redesign it and move it to Epsilon later on when it starts to get old) But yes, those 50,000 or so durangos and whatever else that we heard about are sitting in some other people's parking lots can bring a nice profit (50,000 x $15000 (average per car) = 750,000,000) just like that.

That wasn't what I was thinking, but I'll let you show it to us first, then I'll comment on it.

Well, GM buying Chrysler isn't something I want in the first place. I was just pointing out that it would be easier to keep them seperate companies (by this I mean keep Chrysler Group Chrysler-Jeep-Dodge instead of killing Chrysler, Killing Pontiac-GMC and replacing it with Dodge, and merging Jeep and Hummer into one brand). Chrysler already has platforms, keep their vehicle the way they are now except of course re-design most exteriors and significantly upgrade interiors). Then, for example, eventually transfer LX cars to Zeta (cancel LY) because it doesn't make sense to develop two platforms for the same type of vehicle (this saves costs). I am not gonna keep explaining it, but you get the idea. Dealer network is kept the same, except they could possible add Hummer to all Jeep dealerships (keep them as separate brands -- that way there'll be brand recognition between Hummer (upscale) and Jeep (more affortable). The two would compete again Range Rover and Land Rover respectively.

Yup. we're waiting for that NOS. Now, are you gonna keep GM and Chrysler seperate or are you gonna intergrate Chrysler into GM (example: are you going to make the Dodge Caliber the Pontiac Vibe or are you gonna keep both -- one for GM, one for Chrysler Group and redesign the Vibe based on the Caliber).

Exactly. Chrysler only has 3 brands right now anyway. Its the perfect size company to turn itself around (easier to do so than GM and Ford) especially using GM great new platforms, engines, interior designs, ect.

Sorry man, I forgot about that post (I looked back and I actually quoted you and agreed with what you said) My bad. With the leftover 06 stock, GM could sell it to rental fleets and make more than $9000 a car. If sold to the public, its not a great car and it would be a bad start perception-wise since I invision GM making Chrysler into a stylish, affordable carmaker and selling trashy cars is not a good way for GM to start turning Chrysler's image around.

Yeah, but Chrysler is in the same boat as GM. Their problems are cheap, rental-fleeted cars, quality perception problems, healthcare costs (& everything else UAW related), ect. GM has already started to fix its problems...they can help Chrysler while helping themselves (like I said Chrysler can start being profitable very soon if handled the way GM is handling themselves right now).

Haha. As for the Viper thing..I think that car is worth keeping around no matter what. GM made the XLR off the Corvette so they could use that platform for a new Viper. Or at least keep the current one until it gets old.

Why can't Chrysler be run exactly like it was under DaimlerChrysler (where Benz and Chrysler were like too seperate companies)? I mean why can't GM just take control of Chrysler, improve interior quality and designs and sell them exactly how they are now? Chrysler only lost a billion last year which may seem like a lot, but compared to Ford and GM (in 2005) its not that much. With the way GM is going right now, I feel that they could easily turn Chrysler into a profitable company next year. I don't see why GM should take over Chrysler, destroy half its product and kill some of its own divisions just to intergrade another company into itself.

MORE NEWS ---Chrysler CEO mum on de-merger rumors--- In a letter sent to Chrysler employees today, CEO Tom LaSorda encouraged workers to continue to "produce great cars and trucks," but refused to deny rumors of a possible sale or spin-off of the Chrysler Group from DaimlerChrysler. "Journalists and analysts have been busy conjecturing over what will happen," LaSorda wrote. "We simply cannot respond to these reports. The Board of Management has a duty to consider all options; but while this process is ongoing, the Board – including myself – can’t comment on developments because of strict legal requirements." "It may take weeks or months before official comments can be made on some issues." LaSorda's comments seem to confirm drastic strategies are being considered by the automaker. Recent rumors have suggested General Motors is seriously considering acquiring the Chrysler Group and integrating it into its family of brands and products. http://www.leftlanenews.com/2007/02/22/chr...-merger-rumors/

Perfect. Exactly what I was thinking. Product overlap? Yea, but big deal. All the sales go to the same company. Share parts and other things which saves money which would make up for the development of so many different models.

OK you guys are suggesting that GM kill Chrysler's cars like flies. Kill this, kill that, kill everything except like 2 cars. If GM should just kill nearly everything, then they shouldn't buy Chrysler in the first place. I mean "Chrysler getting saved by GM" or "keeping Chrysler alive" is BS if GM buys it, kills, everything, closes all the dealers, closes most plants, cuts most jobs, and keeps 3-4 cars. That doesn't make sense. And everyone is dreaming up what to do with Dodge and how to incorporate it with B-P-G...what about Chrysler? Kill that too? (I think we've figured out Jeep)

Would you f@#ks stop saying that!?!! That's the worst thing ever. Can you imagine how bad Chryslers will look then? China is America's worst enemy. I want their economy to collapse before it becomes a superpower or something and then we'd have to deal with them on everything. I don't want them to have anything american. Make your own $h!! Hopefully they'll screw themselves over eventually.

Another article I forgot about: Analysts say 50/50 chance of GM-Chrysler tie-up General Motors stands a 50 percent chance of buying Chrysler, Jeep, and Dodge from DaimlerChrysler, according to Merrill Lynch analyst John Murphy, who said such a move would be a "defensive maneuver." "Given the transformation the U.S. industry is beginning, we would not rule out a tie-up," Murphy said in a memo to investors today. "GM may view the acquisition as a defensive maneuver to box out new competition." With Toyota's sales climbing, GM's "global volume lead is certainly in question," he said. "The acquisition of Chrysler would certainly allow GM to maintain its crown for many years to come." Chrysler could add as much as $9 billion in value to GM due to products and "operating efficiencies including reduced research and development and advertising costs per vehicle," Jon Rogers, an analyst at Citigroup. The UAW might also be more willing to make concessions if Chrysler is owned by an American company rather than a foreign one, Rogers said. http://www.leftlanenews.com/2007/02/20/ana...hrysler-tie-up/

I am starting to agree with you. With better interiors, the Caliber is a great replacement for the Vibe, the Nitro is perfect to replace the Torrent, forget about the Demon concept and keep the Solstice, upgrade the G6 with the Torana from Holden and kill the Avenger, Charger or G8 is a tough choice (for me at least)

That's true, but most are saying it just because they think Chrysler will bring down GM (and of course, most would take GM over Chrysler anyday). I don't want Chrysler to die...