Reports: GM in talks to buy Chrysler Group

[Herman Munster]

http://money.cnn.com/2007/02/16/news/companies/chrysler_gm/index.htm?cnn=yes

NEW YORK (CNNMoney.com) -- General Motors is in talks to buy DaimlerChrysler AG's struggling Chrysler group in its entirety, according to several reports.

According to the reports, sources in Germany and the United States said high-level talks between GM (up $0.16 to $36.60, Charts) and DaimlerChrysler (up $2.50 to $72.75, Charts) executives are taking place.

Chrysler Group announced Wednesday it would be cutting about 13,000 workers over the next three years as a part of a restructuring plan. Reports also said its German parent was considering selling or spinning off the unit.

Talks of an alliance between GM and DaimlerChrysler was first reported last week in Germany's Manager-Magazin.

[ScreamingMeemie]

1. This is highly thought to be a rumor that won't come to fruition here in

the Motor City. GM already has too many brands-which is part of its own financial woes. While Chrysler said everything is on the table, this would be nuts for GM and insane for the rest of Michigan. I could only see them being interested in the design group.

[Gidney N Cloyd]

2. That's like throwing a drowning man a lead life preserver.

[ChairmanAgnostic]

5. accurately, no less.

in extremely deep water.

[Jack from Charlotte]

10. Merger? The term is.... "dinosaurs mating." ( NFM)

*

[Auggie]

3. Maybe they want the Jeep brand

[mr_hat]

6. Yep. Also gives them the rwd LX platform

from the 300, Charger and Magnum.

GM hasn't had much to offer that's rwd of late. I'd also guess that if it acquires Chrysler, it'll kill Buick.

-edit, syntax or sumpin'

[Auggie]

7. Interesting thought: Buick

A stuffy old brand that's ready for the junk yard

[AngryAmish]

8. I always wanted a Buick

But it is an old man's car.

[dragonlady]

9. The rich folks in China love Buicks (n/t)

[Auggie]

12. Not dumping on Buick -- there's just not much marketing excitiment there.

[ChairmanAgnostic]

4. you mean the brain trust that destroyed GM will take control

of a german company's american subsidiary, and ruin that as well?

ULTRA cool. Like watching Gomez Addams play with his train set.

[Ignacio Upton]

11. This is a bad idea

Here's a New York Times article talking about how mergers in the auto industry aren't working:

http://www.nytimes.com/2007/02/15/business/15auto.html?_r=1&hp&ex=1171602000&en=8f952a63012b521b&ei=5094&partner=homepage&oref=slogin

I would like to see them just spin off Chrysler instead. It would be nice to actually have a "Big Three" again.

[LTR]

13. I just can't see it

First off, they need to get FTC approval. Who knows if that would happen.

Second, GM is already bloated with brands. They already killed off Oldsmobile, and they've been consolidating Buick, Pontiac and GMC into combined dealerships in recent years.

I can't see this as workable. GM already has their hands full with what they've got, and they certainly can't take on an even bigger load. And Chrysler is a brand in dire need of some maintenance.

However, an alliance of sorts is not too far-fetched. This would merely include collaboration on things like technology, such as hybrid mechanisms. If the government okays this type of thing, then that I could see. Many other car companies are doing this. GM and Toyota still do it (Pontiac Vibe/Toyota Matrix).

[ChairmanAgnostic]

14. if they consolidated ther CPA and MBA brands, and replaced them

with engineers instead, imagine what they could do. Like, become a car company again!