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A new crazy rumor: GM is interested in buying Chrysler.

That’s a weird one. Coming from multiple sources.
Wasn’t GM is so much financial trouble just a short while ago???
Do they have that much cash now?

I know Daimler/Chryser is trying to cut their loses with the Chrysler unit. Which was doing pretty well right before Mercedes took them over.
But I really don’t get what GM would be interested. Do they really need more brands in the US???

Conversation 11 comments

  1. This is true, Vince.
    Chrysler wants a GM version of their Suburbian and large size SUV for some reason. Maybe there is emergency money to do this merger and buyout
    that we don’t know about.

  2. how else will they beat toyota…

    the answer is more brands to encompass the GM brand…so they sell more cars!

  3. Why on earth would GM want Chrysler? Minivans? With this purchase, they’d get Jeep, Chrysler and Dodge. That’s three additional brands that GM doesn’t need. The general needs to continue to work on distinguishing their existing portfolio. Not create more of a blur by adding redundant brands.

  4. Nobody is buying anyone, GM is just sharing truck platforms to Chrysler so they can make profit from producing on a large scale, and Chrysler doesn’t have to invest in a new line. I think GM and Ford collaborated on transmissions a while ago, and Toyota sells Hybrid technology to Ford and Nissan.

  5. Speculation on 3 possible reasons for this.
    1. GM allows the acquisition rumor to spread to make GM look financially vigorous. “Look at how great things are, we could by Chrysler if we want to.” Plus they stall other offers while it’s tied up in negotiation.
    2. Someone figures out there are only a limited number of people that will buy American-branded cars, does the math and finds that buying Chrysler, taking what is needed and bankrupting the rest, will add to GM’s overall existing sales (Ford’s too) enough to pay for the deal.
    3. We know GM is doing well in China but probably would like to sell more cars there. Foreign automakers must have local partners (sometimes several) in China that own a majority of the business. I’ve read many Chinese auto makers would like to sell in the US, but don’t have dealers, testing facilities and for now, crashworthy vehicles to sell. Being in the US market validates them as a world automaker – they like that status. How to do a deal? I’m not sure how the details would be handled (cutting the Chrysler carcass up), but I bet a Chinese Automaker would be quite grateful to GM for allowing them participation in the US that there would be bounty in China paid to GM – extra production/sales, whatever.
    GM buying Chrysler (and keeping a majority or selling off bits) avoids the political ramifications that a Chinese company buying it directly from DCX would have. Having a partner or partners reduces the cost of the deal. Also, GM gets a Chinese partner in the US, which heads off problems with other low cost Chinese companies. For the Chinese, this is about jump-starting themselves as a global auto player – don’t focus on the Chrysler products / plants / workforce. The tech center, test tracks, designs and tooling can be sold / traded independently of the carcass of the corporate structure.
    I’m betting the real answer is the simple one, #1.

  6. Maybe GM and Chrysler could lay off tens of thousands of people all together. Sort of a Republican synergism.

  7. american + american + quality,prestige . quality great cars

    i don’t see anu=ything wrong with it

  8. Seems product lines too similar, not really what GM needs right now. Teaming up with a Korean would make more sense. The selling of America. LOL bound to happen.

  9. “The selling of America. LOL bound to happen.”
    You know Chrysler has been German for years, right?

  10. A large company can buy a smaller company without any cash.
    If company A is worth 10 billion and company B is worth 1 billion. Company a can spend half a billion and get a controlling interest. They then force company B to buy a 5% stake in company A. Net result – no cash outlay.
    However I dont think the difference between GM and Chrysler is enough for this type of game.

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