Rumor Mill: Chrysler to merge with…

Chrysler has been in the hot seat ever since Daimler dumped it and private equity firm Cerebus picked it up. Recently, the company’s brand-new CEO, Bob Nardelli, was under fire after The Wall Street Journal reported that he told employees at a meeting earlier this month that the company is headed for a huge loss this year.

The company has been under fire from critics and rivals who are saying that Chrysler is just dumping its car into the fleet market to make up for loss. Now something else, and pretty exciting, is boiling in Detroit.

Pundits are pondering the possibility of a merger between Chrysler and another weak link...
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S4cabriofoxone - 1/23/2008 11:54:51 AM

+4 Boost

The least you could do is put the word "Ford" on this page.

EnnNorak - 1/23/2008 10:11:30 PM

+1 Boost

If I were Ford, I would offer only to buy Jeep and minivan assets and not these divisions as going concerns. The rights to the Jeep and Chrysler brands should also be included in the sale and Ford could then sell all its minivans under the more upscale Chrysler name. If Chrysler continues to lose money and goes belly up, it will have to sell off bits and pieces of its assets anyway.

1970toyotamarc - 1/23/2008 11:56:50 AM

+2 Boost

The product mix might actually work, but they could never deal with the excessive dealers and plants. Add suppliers and all the other jobs dependent on the auto industry, and you will have tens, if not hundreds of thousands without jobs. There is just no happy ending to any Chrysler scenario right now. The DaimlerChrysler merge is going to go down as one of the biggest blunders in the history of business (if it is not already considered that).

cdoke - 1/23/2008 12:02:25 PM

+3 Boost

I am confessedly and thoroughly baffled by the assertion of a merger between Chrysler and Ford. The pundits are saying this, so there is no verification, but I really wonder how well they thought that out. From Fords perspective they have been selling off their more exclusive and profitable brands in order to “focus on their core”. That type of idealism is cute until it prevents a company from executing their primary goal of making money, that would be called stupidity. Why would Ford attach themselves to Chrysler if it is losing so much money, even if it does help their core products?

EnnNorak - 1/23/2008 10:16:01 PM

0 Boost

I'm not at all baffled. Both companies are under financial pressure and need to secure long-term profitability through consolidation of overhead and economies of scale in design and manufacturing.

A merger of two "dogs" can be engineered to create a single profitable enter[rise.

w209w114 - 1/23/2008 12:36:54 PM

+2 Boost

The blind leading the blind, Thats all I have to say.

EnnNorak - 1/23/2008 10:23:02 PM

+1 Boost

If you want a new name, bring back American Motors and Ford"s airplane guy can lead it. American Motors has a very patriotic ring to it and would be an excellent name for a merged Ford and Chrysler.

VISO - 1/23/2008 1:37:27 PM

0 Boost

The Reaper is circling.

tagh72 - 1/23/2008 1:45:31 PM

+2 Boost

I think the pundits are drinking too much kool-aid!

Obliv - 1/23/2008 2:16:22 PM

+1 Boost

Fords not going anywhere. Theyre getting on the right track, as their new vehicles and concepts as evidence.
I dont see any merit in this thread, as it will never happen.

EnnNorak - 1/23/2008 10:24:42 PM

+1 Boost

Never say "never". My guess is that it is already being discussed internally at both companies.

CarbonBlue - 1/23/2008 2:35:36 PM

0 Boost

If anyone hasn't noticed yet you can visit:
motorauthority.com & egmcartech.com
daily its this exact news, only sooner, and without of the toyo & lexus fanboys...

w209w114 - 1/23/2008 3:22:25 PM

+2 Boost

Yep, I actually do. The news are as much as 5-6 hours earlier there

jt716 - 1/23/2008 3:40:07 PM

+2 Boost

Oh no, please don't even try! Chrysler has too much problems and will drag them both down! Ford is beginning to see the light and Chrysler will just be a hindrance to that.

EnnNorak - 1/23/2008 10:27:40 PM

+1 Boost

jt716, I agree that Chrysler has problems but Ford can simply buy the assets and rights to certain brand names -- they don't have to buy a going concern. Of course some financial vulture will have to put up the money in exchange for many shares.

Anthony - 1/23/2008 3:54:32 PM

0 Boost

Certainly Ford would not dump the Chrysler/Dodge passenger cars?! I personally think the "Chrysler" name has more cache than "Lincoln" nowadays.

If ever there were such a phrase as 'automotive karma,' I think it would apply if this were to happen.

EnnNorak - 1/24/2008 6:59:09 PM

+1 Boost

I think that Lincoln is still a strong brand but is getting close to being flushed down the toilet because Ford never kept cars like the Town Car current. They tried a smaller LS but it had no leg room for rear passengers (a deal breaker). The MKX is not a true Lincoln -- it's a fancy Ford Edge. Lincoln needs to borrow a page from Cadillac's play book.

S4cabriofoxone - 1/23/2008 10:27:11 PM

+1 Boost

GM is leading the way, but Ford is not far behind. I can tell that they are really trying (Ford Explorer America, anyone?).

But Chrysler... oh, poor Chrysler. They have no idea what they're doing. Pretty much where Ford was two years ago.

StickShiftCamry - 1/23/2008 10:41:01 PM

+1 Boost

All Chrysler needs are the 300's, Chargers, and Challengers. The 3.5 RWD is really nice to drive even, u get nice V8 like wheelspin when u want. The 3.5, 5.7 and 6.1 are really good cars, it'll be sad to see them go.

toolatetorace - 1/23/2008 10:58:39 PM

+1 Boost

Pundits kind of remind me of the people that start a sentence with the word(s) ,,, "I heard"

krackerhatesme - 1/25/2008 9:04:27 PM

+1 Boost

Did Chrysler bankrupt its new owners already? Now its Fords turn to get bankrupt it it takes Chrysler. Ford Compass.. Ford Liberty... Ford Charger.... Does that sound right? Maybe Ford takes Chrysler and beats it to a pulp - then thats one less compitition for them.