Deal Book – February 16, 2007:
Days after Chrysler’s parent company said it would not rule out a sale of the struggling unit, there were two reports Friday that rival automaker General Motors was negotiating to buy it. Shares of G.M. fell as much as 2.2 percent following the first report, from the Automotive News, but soon recovered. Shares of DaimlerChrysler, which owns Chrysler, rose 3.6 percent. Citing unnamed sources, Automotive News said that G.M. and DaimlerChrysler executives have held “high-level” discussions beyond teaming up to design a large sport utility vehicle together. Instead, it said, G.M. may buy Chrysler outright.
Reuters also reported Friday that G.M. was in talks to acquire Chrysler, citing its own, unnamed sources.
German magazine Manager-Magazin reported the two automakers were in talks earlier this week.
In September, Automotive News reported that G.M. was holding merger negotiations with its other Big Three rival, Ford Motor.
“I’m Ted Stevens, and I approve of those boobs.”
Update: Jsforbes has found a very good article about the problems facing Chrysler.
It’s like the old story about the farmers who, realizing they were losing a dime for each watermelon they sold, bought a bigger truck so they could make it up on volume.
They were in talks about building a bigger SUV? Good lord. And now they’re gonna conglomerate?
I bit Toyota is just sitting back laughing.
Im in Michigan. Its not so much a merger as much as it looks like Ford is simply closing its doors, and GM is picking up its assets for a song.
I know precisely zero people working for Ford who have not been offered early retirement, or severance packages.
The internet is not a truck, it’s a series of boobs, er, I mean tubes, yes a series of tubes, and if you don’t understand those boobs can be filled and if, er, wait, did I say boobs? I meant tubes, yes a series of tubes…
2. “GM is picking up its assets for a song.”
Let’s hope they pick Detroit Rock City. That song rocks!
How about giving the unions the finger and stop the bleeding? Their benefits are 100 times better than those offered to teachers or anyone else in the private or public sector! It’s obscene.
Unions had their time, but that time is long gone.
And this is coming from a former union guy.
I really don’t care about Ford, Chrysler or GM. But isn’t that girl, hot!
This is why the US automakers are failing. One failing automaker thinks they can fix themselves buy taking over another failing automaker.
This theory might work in the days where there were only 3 or automakers but now it’s just stupid.
Here‘s a bigger version of that piccy:
(No, I didn’t go looking for it! That link was PUSHED onto my computer by a virus! Honest!)
I have a 1995 Toyota Corolla…the thing has 238,000 miles on it and I drive it everyday. Besides a wheel bearing and a new starter…everything else on it hasn’t failed. I can’t say the same for my wife’s Ford that she’s had for only 3 years.
Maybe if they get away from the notion of selling cars that fall apart every 2 or 3 years so people will go out and buy a new one, they would be in a better position today.
Too bad she can’t use her flotation devices to float Ford.
So Ford is essentially closing its doors? Wow. There goes another chapter in US history. Makes me sad, actually, if you’re right about that GregA.
She could squat 1000, but not in those shoes.
not really, no.
what?
My favorite car site has some info on this:
http://www.thetruthaboutcars.com/?p=3159
I don’t understand what this is supposed to do, GM’s problem is that it’s too big for its own good.
It seems the only logical conclusion, cause there is no way to truly compete against better cars when your selling crappy ones then to merge and sell crappy cars but have the money to still stay in business.
Let’s continue to make this a blog I can’t visit at work. Good thinking gang.
15. “Let’s continue to make this a blog I can’t visit at work. Good thinking gang.”
Damn, he figured out our plan!
#15, Where do you work? The White House?
BTW, I hadn’t really intended for the piccy to be *embedded* in my post. I just posted a link. I guess this site puts image tags around it anyway.
17. That was me, one of the few perks of being a CE here.
Nascar is supposed to be developing the race car of the future. The race cars would all be identical in size and shape except for the engines powering them. Who knew that the Big-3 automakers would join together and beat them to it.
As I recall, James works in Utah. ‘Nuff said.
Meanwhile, every dicho about the blind leading the blind comes to mind. I actually think Ford might be capable of getting themselves out of the doodoo. GM, no way. Dodge seems incapable of understanding any interrelationship between design, marketing and economics.
My Dodge Ram pickup is well built, 200,000 miles with few problems. I might consider buying a Dakota, esp. with say a 3 litre turbo diesel — but, I stand a better chance of Toyota bringing in something slightly smaller or bigger.
FedEx had to go to Eaton to have their Sprinters rebuilt as diesel-hybrids because Dodge and Daimler wouldn’t do it. A free commercial goes down the tubes (not Ted’s).
I own an ’04 Dodge Ram 3500 (dually diesel) and as far as I’m concerned it’s the best vehicle I’ve ever had. Nothing on it has failed yet. (And this ain’t no soccer mom truck — I live on a ranch and haul a horse trailer and a 35′ travel trailer with it.) So Chrysler knows how to make big trucks, at least! I just hope that I can still get parts for it 5 years from now.
My 1986 Ford Mustang GT has over 340,000 mile on it and is still going strong. Original engine, original transmission, rebuilt radiator and alternator. Our 1984 Mazda GLC on the other hand went about 143,000 miles before the engine blew.
#20 hit it on the head.
#16, on the other hand, would be excluded from this community if original thought ever came in to play around here.
24. “#16, on the other hand, would be excluded from this community if original thought ever came in to play around here.”
So I’m the reason you keep coming back. I knew you loved me. XOXO TLA
The Chevy Avalanche is the greatest vehicle ever made. It’s a nice mid-size truck/SUV combo that can most of what normal people need on a daily basis. Every carmaker needs to make a version. The Honda Ridgeline comes close but doesn’t have the midgate. There’s certainly no need to drive anything smaller, except maybe a recreational sportscar on the weekend.
It’s all about the damn unions. Why is it that Toyota and Honda can build cars that last for ever in North America and not have to deal with those virus of the corp world.
I had a Saturn (92) before going back to big daddy GM with 170,000 miles on it the engine was never touched, the clutch gave out at 170000(factory manual), then I got a Oldsmobile Alero and that was a big heap of trash on wheels with 57,000miles and it started to spend more time in the shop then my garage.
Trash the N.American cars for me, and now it’s a Toyota and BMW.
When ever someone says, what kind of car should I get 98% of the time I hear people say get a Toyota or Honda. I wonder why?
Because they spend more time in Engineering and no sucking union dogs.
#2 – it’s the same in Atlanta… everyone has been offered up to $100,000 to leave Ford.
Personally, I think the fact we do not have a nationalized health care system is more to blame than the unions. With nationalized health care, it would be easier for companies to keep jobs here. . .
I think they all need to do the opposite. Split off into separate companies and DITCH THE UNIONS!!! They are killing them. If necessary, move them all out of Michigan and start running them like Toyota and Mercedes does, in rural states with better tax incentives. Then, hire some DESIGNERS (no committees!) and get a good quality control program in place. Then, let each company FOCUS on what they do best. No crossovers at first. Let each one get an identity again. If quality was job 1, then they would thrive again, but conglomeration is killing all the businesses. It’s too hard to innovate and change direction when you’re top heavy. For instance, imagine a Pontiac that was small and focused, like Lotus, making serious performance cars. I think they would flourish. Or, they could keep doing what they’ve been doing and continue to die.
#29 & #5, It’s obvious you listen to far too much right wing, nut case, talk radio!!! Try to get your facts straight and stop listening to people who lie for a living.CRIPES!!!
By the way #5, most teachers these days are in unions too, and yet you seem to think they’re underpaid(by a factor of 100X ???).How does this happen, if your view of unions is correct?
Try checking your facts and thinking through your arguments a little more thoroughly before posting.
#31 is far closer to the truth of the situation.