GM to Purchase Chrysler to Eliminate Them (Minus the Jeep Brand)?
Date 2008/10/16 22:26:21 | Topic: Miscellaneous
|The Detriot News has an interesting article that postulates that GM may be thinking about purchasing Chrysler just to eliminate them, sparing the Jeep brand:|
Analysts say a deal along the lines of Chrysler's purchase of AMC, which eliminated Detroit's No. 4 automaker as an entity and all its brands except Jeep, would make sense for GM.
Besides the Jeep brand and Chrysler's minivans, the company has few assets of value to its bigger rival, he said.
"For GM, the only reason to absorb Chrysler would be to eliminate a competitor," he said.
Many industry experts believe GM's interest in Chrysler, both now and in 2007, when DaimlerChrysler AG put the American unit up for sale, reflected its goal to reduce the excess capacity in the U.S. auto industry that has hurt all of Detroit's carmakers.
"The others (automakers) will be delighted to have Chrysler just die and take 1.5 million units out of the industry, which is about what the excess is," said Gerald Meyers, former chairman of AMC and now a professor at the University of Michigan.
So, is GM owning Jeep a good thing or a bad thing? Let us know what you think in the reader comments.