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  • GM-Chrysler alliance floated

    Oct 13, 2008 12:06 PM

    General Motors has refused to confirm or deny speculation that it plans to merge with Chrysler, but sources inside both companies say talks are well underway.
    Industry analysts have reacted unenthusiastically to a potential merger between GM and Chrysler. A GM-Chrysler alliance would widen the gap with Ford, but many believe that any savings from administration efficiencies and shared model platforms would be years away. Apart from any other complications, it would create a 10,000-strong dea...Read the full article
    • TegTypeR
    • Joined Nov 25, 2007
    • 667 Posts
    • Status: Offline

    Re: GM-Chrysler alliance floated

    Oct 13, 2008 12:16 PM

    I personally can't see this being a viable option.  As the article says there will be so much duplication of dealers and other business elements that it will take them years to break it all down and make it profitable.

    GM already need to rationalise its US business model.  They still have too many brands with too weaker line up to be profitable at the moment.  Taking on Chrysler will only make matters worse.

    As harsh as its sounds, let Chrysler go to the wall.  This isn't banking it's business and that means survival of the fittest.  There are too many manufacturers supplying a too smaller market - its good old fashioned supply and demand.

    Mind you after what's been going on in the financial markets recently, you never know, the US government may bail them out!

    Read my motoring and car related diatribe at.........

    http://TegTypeR.blog.co.uk

    Updated: 23rd November 2008
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