And Then There Were Two? Plan Surfaces Depicting GM Absorbing Chrysler

General Motors Corp. could swallow Chrysler LLC and end the Auburn Hills automaker's 83-year existence under one scenario being discussed by GM and Chrysler's owner, Cerberus Capital Management LP, said a source briefed on the talks.

Such a deal, similar to Chrysler's 1987 acquisition of American Motors Corp., would allow GM to pick up some of Chrysler's 2.7 million in annual sales -- while avoiding the bulk of Chrysler's costs, the source said.

GM, Cerberus and Chrysler all declined to comment.

 

mini22 - 10/16/2008 11:46:37 AM

+1 Boost

This would be a sad day if this happens.

Agent009 - 10/16/2008 12:28:42 PM

+1 Boost

I hate to say it, but I really think it will happen.

AMiodynski - 10/16/2008 1:09:26 PM

+1 Boost

Why is that so sad? Have you not seen the new Chrysler Product out there? What do they really have that is nice? Sure, they have a Viper, Challenger and 300C, but the jeep line is terrible, the Sebring sucks, and oh wait, I think I just threw up thinking about the rest of the line up...

M35MT - 10/16/2008 1:31:44 PM

+1 Boost

There are many loyal Jeep owners in the snowbelt. The brand should become more focused and not have any cars in its lineup (patriot, compass).

Having those vehicles to reduce overall fleet fuel economy is f'ing retarded. Is congress that blind? "Let's rebadge a Dodge Caliber and sell it with a Jeep badge to make Jeep a greener brand" WTF??!?! That makes no sense. Politicians and consumers need to lay off the Michael Taylor Juice.

Shredmo - 10/16/2008 2:25:22 PM

+1 Boost

Jeep should not be a brand by itself. Why can't it just be a model with variations. In reality, only the Wrangler needs to survive. Make 2 and 4 door convertibles as well as hard tops. This would solve the CAFE problem without the lousy Compass and Patriot. How many stand alone Jeep dealers are even out there? Most I have seen are part of a Chrysler/Dodge dealer already.

LACMAN - 10/17/2008 12:59:42 AM

0 Boost

^^^Where are u from? Most of the Jeep dealers here in the Suburbs of Chicago are Jeep only...

Shredmo - 10/17/2008 1:22:35 PM

+1 Boost

I am in Iowa. The majority of dealers in the 'burbs are owned by a dealer that owns multiple franchises. Sure, the multiple franchises might not be under the same roof, but they aren't stand alone. Think Napleton, Continental, Naperville, etc. All own multiple franchises. THere might be a couple independent Jeep dealers in the 'burbs, but the majority are not.

sold2early - 10/16/2008 1:14:49 PM

+2 Boost

Ron Gettelfinger is going to throw a major hissy fit.

Whelan - 10/16/2008 2:12:41 PM

+6 Boost

Jeep is doing ok for itself, the car lineup at Chrysler needs a HUGE revamp.

I would even promote the resurfacing of the Neon or something similar instead of simply the FUGLY Caliber that is offered by Dodge.

Shredmo - 10/16/2008 2:29:24 PM

+2 Boost

Right on, IMO the Caliber isn't terrible, but it should be the sidekick to a small sedan similar in class to the old Neon. Toyota has the Corolla/Matrix combo which seems to do very well satisfying customers needs.

Then there is the Avenger/Sebring problem... :(

woood - 10/17/2008 12:37:21 AM

-1 Boost

I agree with Chrysler having a huge fan base but as to easily improving the vehicle line up, is another question. Same can be said with Ford. Why not merge the three companies and lets call it a day.

topneuro - 10/17/2008 10:16:29 AM

+1 Boost

There has been no moribund lethally injured horse that has deserved to be shot out of its misery more than Chrysler. They have had and still have few outstanding vehicles but the majority is of dismal quality. Even Pontiac and Oldsmobile had better vehicles.

rallyss - 10/19/2008 12:23:19 AM

+1 Boost

this is bad because gm will just take the mini vans and jeep and dump the rest of the line up that they dont need and along with it will go the 30,000 chrysler employees not to mention the supplyers that rely on them.