Chrysler/GM merger OT

[NatesSedan]

http://www.msnbc.msn.com/id/27125864

I guess a 350 SBC won't be frowned upon anymore if this thing happens since it may join the family. Chrysler is putting out the only innovative cars these days. I would sure hate to see GM get their hands in things.

[PatS....]

GM, Chrysler and Ford have been driven into oblivion by boring beancounters who know nothing about cars/trucks.

May as well merge all 3 and have it done with. The damage has been done.

GM shares are at $5!!! The lowest since 1950!!! Were just waiting for the fat lady to waddle up to the mike and start singin'

Sad

[pflaming]

Showed my wife a picture of the 08 Chevy Malibu and asked her opinion. She said it looked like our '98 Chrysler Cirrus. Told my GM friends I was going to put Mallibu markings on my car and consider it new. Mopar has often lead the industry in innovation but not always so good in quality. I like my car but did a lot of fixiing. Have 170,000 miles on it.

Gonna keep it, times are goin to get tight!

[Mr. Belvedere]

The sad thing is the big three were hurting even before the economic downturn started. They do not have much else to sell to stay afloat, besides who has the money to buy anything anymore, I doubt they will be able to borrow anymore since nobody is lending and with their credit reduced to junk status looks like the death of at least one or perhaps all three is almost certain. It is sad, another blow to the American phsyche. They like Studebaker and Packard can console each other as they go down togather.

[RobertKB]

Nowadays it is hard to believe but at one time GM had 50% of the market in the US and Canada in the 1950's and 60's. To me it seems that management missed the boat not only once, but several times, with what the buying public wanted. Latest example of that is how GM, as well as Ford and Chrysler, kept turning out giant SUV's and pickups which most people have stopped buying. Not sure what will happen to the once "Big Three" but a merger is a possibilty or the disappearance of one or more.

[Norm's Coupe]

Think positive. I've been thinking of jumping in the frying pan and picking up some GM shares the past couple of days. Was down to about $4.89 yesterday. Now's the time to hop in on good well known major company's stocks since they are hitting bottom. No where to go but back up.

Now, if GM were to pick up Chrysler in a deal for GMAC, as they said it will give them a 1/3rd market share, selling far more than Toyota in the US. I'm not too concerned about GM going belly up, Chrysler is more likely to do that unless they are swallowed up by someone like GM.

The real problem with a GM/Chrysler buyout is jobs. Lots more automotive jobs would probably be lost since GM would not need all the duplicate Chrysler plants. Therefore you'd see a lot more plants closed for good.

[JerseyHarold]

Back around 1981, Chrysler was in rough shape, their stock was in the toilet, and they were going under.

I told friends and family that it was a great time to buy Chrysler stock because the government wouldn't let Chrysler go down and their stock would rebound. Everything happened the way I predicted, and the people who listened to me made a nice amount on the stock.

Everyone, that is, except ME...I didn't take my own advice! I'm still kicking myself.

[Norm's Coupe]

Back around 1981, Chrysler was in rough shape, their stock was in the toilet, and they were going under.

I told friends and family that it was a great time to buy Chrysler stock because the government wouldn't let Chrysler go down and their stock would rebound. Everything happened the way I predicted, and the people who listened to me made a nice amount on the stock.

Everyone, that is, except ME...I didn't take my own advice! I'm still kicking myself.

When I said "Think Positive" before, I was thinking back to the Great Depression of 1929. Of course I wasn't around then, but did look at reports of those times during the 70's. There was one stock in particular I was thinking about from those times. That was IBM.

Back during that depression no one wanted IBM stock. You could buy it for 25 cents a share and some people did. The people who did buy it made a killing on that stock if they kept it until the 60's or 70's, or even today.

That was my whole point about buying stocks at a time like this. They are at or near their lowest prices. Prices will go back up, you just have to be willing to gamble a little. Also if you do, don't look at them everyday and do a panic sale if they fall a little after you buy them. Just don't buy on margin, only what you can afford to pay cash for.

[dezeldoc]

Boy o' boy will that boil the blood of the bowtie boys!! I bet a bunch of them will choke from their bowtie shrinking around their necks. Funny thing is they said GM will have to come up with some $$ to make it happen. Hmm according to most of the Chevy crowd mopars ain't worth a damn! He He who is laughing now!

[Plymouthy Adams]

actually it is quite a shame and no one should be laughing..the economy is tough..the big three has failed to meet the challenge and continued to throw their weight around to the tune of SUV's for much too long..they may as well jump on board for a govenment bailout...everyone else is getting one...

[Don Coatney]

..they may as well jump on board for a govenment bailout...everyone else is getting one...

I am not getting one. And believe me I lost big....real big bucks in the past 6 months.

[Plymouthy Adams]

tell me about it Don..I bust my hump to pay my bill on time..live within my means and such..and what do I get for being on the up and up..the added cost of paying for those who over extend and are sucked into the ballon payment mortgages etc etc...in reality, who in the name of all that is good allowed these types of mortgages to be created..and these reverse mortgages..yah..well I want to know just what the fallout will be when these people outlive the payoff of their equity...

[PatS....]

The ones who created and profited from the mortgage disaster are the same guys who are now being bailed out...they aren't giving back the big profits made on them but they are taking the bailouts. They take the bailouts and go on a spa weekend, then get back and want more. And they get it.

The average Joe is ignored by the bailout, he still loses his house, car, business...and in many cases, his life.

But the stuffed suits lose nothing.

Interesting how that works and how the average people sit back and let it happen.

The upper management at the Big Three will get a bailout when the time comes and they'll still get their multi million dollar bonuses and pensions, even though they are incompetent boobs.

Where's Iacocca when you need him?

They need car guys to run car companies, not bean counters.

[Bingster]

Lee Iacocca has a web site and I e-mailed him to say that I think he should be in the headlines commenting on the bailouts. It seems to me that there should be a think tank in Washington with folks like Iacocca. I read his books and anybody who could bail out Chrysler at that time and pay back the government loan should be consulted.

[mackster]

Nowadays it is hard to believe but at one time GM had 50% of the market in the US and Canada in the 1950's and 60's. To me it seems that management missed the boat not only once, but several times, with what the buying public wanted. Latest example of that is how GM, as well as Ford and Chrysler, kept turning out giant SUV's and pickups which most people have stopped buying. Not sure what will happen to the once "Big Three" but a merger is a possibilty or the disappearance of one or more.

I feel bad seating here reading about the fall (or possible fall of two) American car icons...I drive my Asian car that shall remain nameless,but rhymes with ONDA. I had my eye on several American cars over the pass few years but I ended up going with a good quality, less expensive car that had all I needed and gave me great MPG. The big SUV they were putting out were pompous American excess and did not appeal to me. I wish they would turn out a better product like the Chrysler 300 earlier on. I really dig that car. and a hemi is a big plus! I could not afford driving it regardless of the look that i desired. they had smaller engine versions and that could have work for me. but again I know some of us would not spend in excess of our means like some were push to do in the housing market...Glad I stuck to the basic "Don't Spend what you don't have..."

[Norm's Coupe]

Lee Iacocca has a web site and I e-mailed him to say that I think he should be in the headlines commenting on the bailouts. It seems to me that there should be a think tank in Washington with folks like Iacocca. I read his books and anybody who could bail out Chrysler at that time and pay back the government loan should be consulted.

Did you forget that Chrysler also got a government backed bailout when Iacocca was at the helm at Chrysler?

Actually, the way I read the deal between GM and Chrysler requires no cash for GM to take over Chrysler. Cerberus owns 80% of Chrysler and wants out. The way I read the news Cerberus wants to give 51% of Chrysler (controlling interest) or more to GM in a swap for GM's Finance Division GMAC. That gives Cerberus a stronger position in the financial market and GM a stronger market in the auto business. So there is no cash involved in the deal. It's a stock exchange, making it a paper trade instead of cash trade.

I don't think any of us GM fans would worry about them taking over Chrysler since GM management would be making the rules. If anything, the modern Mopar's would probably become Chevy's or Buicks, etc.

[Frank Elder]

The merger has stalled this morning, GM and Chrysler have broken off talks for now.

[Young Ed]

Norm he didnt forget. He mentioned that Chrysler paid it back in less time then the terms of the loan.

[Plymouthy Adams]

Chrysler had to secure their own loans as I understood..the government only backed these loans to protect the investor should they go tits up..I for one would had to see Chrysler demise..it sure got raped by Mercedes..they skimmed the top better than any dairy can remove cream...

[RobertKB]

If this merger actually happens, old Walter P. will be turning in his grave. I don't believe he had much time for the GM brass or Ford. He set out to build his own company and acquired many assets to do that as well as start to build cars using his name.

[Plymouthy Adams]

You probably are right but when ford was having difficutlies with getting a dependable automatic traqnsmission..Chrysler stepped up to bad and gve them the blueprints..am sure money changed hands in the deal but it got ford out of a bad squeeze..Chrysler and Ford shook hands a number of time over the years..even Autolite was a Mopar name till about 1956 when a trade between the two changed the industry a bit

[RobertKB]

One story I heard, and it may be urban legend, was Walter Chrysler took the first Plymouth built and drove it over to the Ford factory and personally presented it to Henry Ford. Both the Plymouth and Ford Model A came out about the same time (1928). The Plymouth had hydraulic brakes, full engine oil pressure, and few more mechanical advances over the Model A. However, as we all know, the Model A was the bigger seller. We on this forum also know which was the better car.

[Young Ed]

I've heard that story too. Wouldn't surprise me if it was true.

[blueskies]

Showed my wife a picture of the 08 Chevy Malibu and asked her opinion. She said it looked like our '98 Chrysler Cirrus. Told my GM friends I was going to put Mallibu markings on my car and consider it new. Mopar has often lead the industry in innovation but not always so good in quality. I like my car but did a lot of fixiing. Have 170,000 miles on it.

Gonna keep it, times are goin to get tight!

My brother was all hot to buy a new Malibu, just torn on which color to get. I looked through the brochure he brought back from the dealer, and was looking at the estimated gas mileage....

The four cylinder gas model is supposed to get 33mpg highway, while the hybrid version is supposed to get a whopping 1 mpg/highway better. ONE MPG better. WTF? My '08 Honda Civic hybrid gets 46.5 mpg/CITY and can easly achieve over 50 mpg/Highway.

GM still doesn't get it, and I'm not sure they will survive long enough before they do. It seems to me that the hybrid models in their lineup are tokens made to make the company seem green, without having to actually make any difference at all in what they are really capable of.

Pete

[Young Ed]

Just for comparison I looked up the non hybrid civics. They are mostly rated at 36mpg with the SI version at 29. So the honda one does have quite the jump from 36 to 45. As far as comparing the actual MPG and not the increase you'd have to compare the size of the vehicles too. If the malibu is larger you can't expect it to get the same mileage. But I agree the 1mpg increase is a joke.