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MiscellaneousNo Deal Yet for GM and Chrysler
Posted by mike on 2008/10/20 8:49:46 (1704) reads

The New York Times Blog is reporting that negotiations are tenuous, but ongoing, as the current major hurdle appears to be GM arranging the financing to complete the deal in the current world financial crisis.

If and when the deal does go through, expect massive plant closures and layouffs:

Chrysler has 14 assembly plants and the expectation is that many of those would be in danger of being shut if it merges.

Once the deal closes, G.M. is only interested in keeping Chrysler plants where the No. 3 U.S. automaker has made significant investments in retooling, according to Reuters.

That could include Chryslerís truck plant in Saltillo, Mexico, the Jefferson North Jeep plant in Detroit and its Belvidere, Illinois car assembly plant, one source briefed on the talks told the news service.

The Jefferson North plant is where the Grand Cherokee and Commander are assembled, while the Belvidere plant is home to the Compass and Patriot.

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skywater55
Posted: 2008/10/23 16:52  Updated: 2008/10/23 16:52
Just can't stay away
Joined: 2006/8/28
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Posts: 95
 Re: No Deal Yet for GM and Chrysler
I drove by one of those neat looking hummer sales centers and it only had 7 hummers on the lot the rest were other GM vehicles. I would think GM does not want Jeep by itself and probably thinks it can make GM branded "Jeep" type vehicle i guess the H4 to go head to head with Jeep without spending billions on an aquisition and integration of another brand........

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Ingela
Posted: 2008/10/21 20:16  Updated: 2008/10/21 20:18
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Joined: 2007/12/12
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Posts: 44
 Re: No Deal Yet for GM and Chrysler
I feel bad for Detroit, but at the same time its not like they havent had time to adjust to the markets, they are making the same mistakes over and over, why dont they have better fuel efficient cars? it's not like they havent lived through this before?
Chrysler hires Nardeli from Home freekin Depot, they never seem to get passionate men like Steve Jobs at Apple, or Ford himself, just pencil pushing generic bussiness men types taking home big paychecks.

Poster Thread
myhotwheels22981
Posted: 2008/10/21 12:13  Updated: 2008/10/21 12:13
Home away from home
Joined: 2002/3/22
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Posts: 247
 Re: No Deal Yet for GM and Chrysler
I read this morning that GM probably wont get the financing for a purchase of Chrysler, which puts the ball back into Nissan-Renault's court.

GM should just buy Jeep and leave the rest of Chrysler up for sale, they can probably scare up the cash for that...Nissan wants the fullsize pickups, and VW wants the Minivan market...GM wanted out of the Minivan market anyway, so why would they want back in, and they already have a fullsize truck market, so why would they want competing divisions...

I admit the fly in the ointment of this scenario is that the primary asset of this deal is JEEP, but there needs to be a much more orderly breakup of Chrysler, than letting GM raid a cash stash...Isn't that wht Mercedes did to Chrysler?

Harley Davidson should buy JEEP, they already have a conservative successful business model, they could simply build the Wrangler 2 and 4 door, JT Pickup, and rename the Liberty the Cherokee and be done with it. Then we'll at least get out HD edition Wrangler Pickup

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01TJ
Posted: 2008/10/21 14:03  Updated: 2008/10/21 14:03
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Posts: 109
 Re: No Deal Yet for GM and Chrysler
Are you serious? What a great idea, then a Wrangler would cost $100,000. Harley Davidson motor cycles are completely overpriced! I would hate for Jeeps to become something only rich yuppies could afford.

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jpsmith
Posted: 2008/10/21 14:20  Updated: 2008/10/21 14:20
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 Re: No Deal Yet for GM and Chrysler
rich yuppies


That word. I do not think it means what you think it means. I don't know many yuppies that ride Harleys. A yuppie is someone between 22 and 34 who lives in the city and works a white collar job - often in sales, marketing, or day trading. The "yup" in "yuppie" stands for "young urban professional." Think Charlie Sheen in Wall Street. My biker-relatives don't really remind me of that.

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jeepidiot
Posted: 2008/10/21 15:07  Updated: 2008/10/21 15:07
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 Re: No Deal Yet for GM and Chrysler
Actually, you just described my last division director here at work. Bought a pair for herself and her husband. There is more of them out there than you think.

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MarkH
Posted: 2008/10/21 9:30  Updated: 2008/10/21 9:30
Home away from home
Joined: 2005/7/20
From: The Great White North
Posts: 494
 Re: No Deal Yet for GM and Chrysler
Apparently, GM is greedily eyeballing Chrysler's estimated $11B liquidity... That strikes me as humorous, since GM lost an incredible $15.5B last quarter! (For comparison, ExxonMobil earned only $11B profit during the same period...)

Let's see, that would get them, what, about 2 months of operating costs? Even if GM can "slow bleed" that money for a year, what's the point? To get to a slower sinking boat?

The American auto industry is in critical shape, indeed, and unfortunately, I'm stuck in the thick of it!

Can you hear the bells toll, Detroit?

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Brian_R
Posted: 2008/10/20 18:21  Updated: 2008/10/20 18:21
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Joined: 2005/11/28
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Posts: 47
 Re: No Deal Yet for GM and Chrysler
I would believe that TNAP and Toledo Supplier Park would be intact as well since both of those were built within the past 10 years.

GM still has tons of plants that it has shuttered in the past that noone has dared to buy even for just raw land, like their Linden, NJ truck plant. They're just a mess all around.

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MarkH
Posted: 2008/10/21 9:17  Updated: 2008/10/21 9:21
Home away from home
Joined: 2005/7/20
From: The Great White North
Posts: 494
 Re: No Deal Yet for GM and Chrysler
One of the major issues with selling an old plant site is the "environmental impact". All the crud in the ground (heavy metals, solvents, carcinogens...) has to be addressed when the property changes hands... So the old sites tend to just sit & rot away...

What never ceases to amaze me is that there always seems to be a small contigent of do-gooders (let's call them community organizers...) that want to "reclaim" old industrial sites into parks!

That's about the stupidest thing you could do with them (health-wise) because you can never dig deep enough (i.e., too costly) to do a thorough soil restoration...

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RUBICON
Posted: 2008/10/20 10:22  Updated: 2008/10/20 10:22
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Posts: 377
 Re: No Deal Yet for GM and Chrysler
This morning's rumors include...

Cerebus is attempting to buy the remaining 19.9% of Chrysler from Daimler to clear up any sale issues.

That GM is only interested in portions of Chrysler and Dodge. Jeep would be sold to Nissan/Renault.

[Source: Autoblog]

Poster Thread
01TJ
Posted: 2008/10/20 10:18  Updated: 2008/10/20 10:18
Just can't stay away
Joined: 2006/8/25
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 Re: No Deal Yet for GM and Chrysler
This will be a really bad thing for the economy but of course they will keep the plant in Meixco.

Welcome to the new GM "General Mexico"!
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