What’s missing from the GM-Chrysler coverage
I remember when the analysts desperately wanted Apple to die… because they’d been predicting it so long. You couldn’t open up a mainstream mag or paper without seeing the weekly or monthly “Apple to disappear” or “Apple to merge” or “Apple to be bought by ___ and disbanded” article not unlike the current “GM will buy Chrysler to eliminate a competitor” nonsense. (Incidentally, despite Apple’s insanely large cash hoard, which I believe would buy both Chrysler and GM, I’ve already read two recent speculative articles that Apple will die because of the bad economic times.)
No article I have seen mentions the CTC – except those who assume it will be shut down. They don’t have a clue. (They also don’t have Bob Sheaves and others to give them a clue, apparently.)
No article I have seen suggests that maybe, because the Dodge trucks are clearly superior (especially in Class 3-5), that GM might shift over to Dodge’s designs. Only one mentioned the Dodge trucks in any way other than “to be canned” at all, and that was to point out the bad timing of their launch. Ford’s big, trucklike Flex, Toyota’s Tundra (with one factory already being converted to other uses), and Ford’s upcoming F-series were apparently examples of good timing.
No article I’ve seen mentions the Hemi except disparagingly, as in “dummies make V8s when people don’t want them any more.” (Four years ago.) Never mind that trucks still need V8s and the Hemi is best in class, especially in variable cam form.
No article I’ve seen mentions the Phoenix engines or the dual-clutch transmission technology. The latter, to be fair, appears to be dead at the moment, as Chrysler chose to cancel their launch by picking a fight with Getrag and abruptly canceling all talks.
No article I’ve seen mentions the possibility that maybe GM would keep the Dodge and Jeep brands alive, and drop Pontiac and/or Buick. I really don’t think the Chinese will care if Buick disappears from the United States, honestly. Nor do Americans still seem to think of Pontiac as the sporty brand, despite the G8, which could live on as the Dodge Charger. Or not.
To be fair I have not yet seen coverage from Fortune, whose main auto guy is a real thinker. Pete DeLorenzo is very bright but also very angry and that, I think, colors his thinking to the point where he can’t imagine any scenario other than Cerberus trying to back out as quickly as possible. (And to be fair to Pete, I suggested the “Cerberus just wants all of GMAC because they have the political connections to get all its lousy loans converted into government-backed assets, at no cost and with no conditions” scenario last week. I was shot down because the articles said that GM/Chrysler negotiations had been dropped due to bad economic times. Apparently, though, the latter rumor was untrue; they’re pushing to have it all done before the next election. I wonder if that’s so GMAC can get bailed out before the new president takes over in January; the public won’t associate McCain or Obama with Bush’s administration’s actions.)
DeLorenzo, incidentally, implied that GM itself might have to be taken over. This theme was also taken up by a friend within the industry, who is very well connected. He suggested, as noted in a prior weblog entry, that
The fact that the news writers – or armchair speculators, your choice – have not brought any of these things up greatly diminishes my respect for them. It should also make you think twice the next time you see a rumor printed as fact, a bunch of denigrating comments thrown in for no journalistic reason, or a quick sarcastic blow-off closing line from a popular weblog. The truth is out there, but as the Pew Foundation noted, you won’t get it if you stick to one media source – no matter what that source is. Like scientists, informed citizens need a variety of opinions and perspectives to triangulate on reality.
So don’t assume GM will swallow Chrysler, dump Dodge, and then disappear itself. Even if it’s pitched as GM taking over Chrysler (so they can keep some executives as figureheads, or so they can more easily shut down Chrysler factories and vehicles and the Chrysler brand itself — which might be the least valuable brand in the entire GM and Chrysler franchise, given how much it has been associated with bailouts, Daimler, and takeovers), it might not be that way. Cerberus owns Chrysler and it may soon control a large enough chunk of GM to call the shots, even as its spokesmen profess helplessness – or, as they prefer to do, remain silent, and allow pundits to cover the wrong game.
“DeLorenzo, incidentally, implied that GM itself might have to be taken over. This theme was also taken up by a friend within the industry, who is very well connected. He suggested, as noted in a prior weblog entry, that…”
Seems to miss a bit of text, correct me if I’m wrong but I think I might know the anwser of that one possibility: Carlos Ghosn of Renault-Nissan!? With the recent nomination of Patrick Pelata as Renault’s COO, he already picked his possible successor at Renault and I think where he might be the future president/CEO of GM.
This merger or takeover of Chrysler will not help GM, it will just delay the fact that they are going down fast and looks like they will take Chrysler and lets not forget, hundreds of thousands of jobs along with it! Factory jobs, dealer employees, zone and factory reps will all be left out in the cold. For what, GM will just put off the fact that they are a sinking ship and now they will take Chrysler along with them. Cerberus I believe could weather this out with Chrysler, why not they have 11 BILLION in the bank! So how cant they be making money! They just want to make more in the short term. Isnt Cerberus a 2 headed dog that guards the gates of hades? I knew we should not trust them! P.S I am sure prsying that Renault/Nissan comes into play or this will be the end of Chrysler as we know it!
I have herd that GeneralMopor is dead. It would now be Nissan-Renault-Chrysler as the latest AP story suggest.
Very, very, sad. I have waited over 35 years to purchase a sublime or plum crazy Challenger and now the plug will be pulled before I can purchase one. I will never purchase a new car again. It is disgusting how these congressmen can be bought to allow the Japanese and other foreign car makers to build their cars in nonunion states and hire mainly temporary workers. Manufacturing creates wealth and losing the big three will only cause more of our money to go overseas where in a few years China, Japan, etc. will own us and shut down our cash flow if we try to do something. We have now lost the war and are country is in a downward spiral. It really saddens me when I see old see people purchase Toyotas and then put American flags on the rear windshields and bumpers. Are we so blind that we cannot see? Our society has been brainwashed and we will fail. It so very sad that a few people can be bought at the top and everyone else has to pay the price. If this continues there will be so many unemployed people that there will be a revolution. The very rich who have done this because of their greed will have to move to another country in fear of their lives. This madness cannot go on forever. Mark my words. Please, no merger!
Was a GM owner untill I purchased my first Dodge. Dumped my 3/4 ton chevy for one of the first Cummins Pickups in the Dallas area. Since it has been Mopar,7 new vehicles since that first truck and not a one has been back to the dealership for work. Thats a sign of a great product.
I’m going to have to agree with what I have read. It will be the end of a great Auto manufacture, and the delay of the demize of GM.
And just think, Ford is setting on the side lines wringing there hands waiting for the fall.
And the thought of that, well, IT’S SAD.
The more I read about all of this conjecture, the more I think this is a smoke screen. Is Cerberus really that stupid? We are living in time of great fear, monumental changes, and much anticipation. The cure is simple – Chrysler needs to reinvent itself and build on the popularity of the latest 300 model and upgrade it’s tarnished image (inherited by Daimler) by developing some great cars. The Sebring/Avenger platform is about as cheap feeling as an old Chevette. The Caliber looks like a Citreon on steroids. Come guys. Look at what works! Quality, quality, quality. My new ‘08 Charger R/T is a great car. It could be better by minimizing some minor quality controls issue -a rattle or two, and smoother MDS operation. Maybe I’m an eternal optimist, but all I’m reading here is that Chrysler is dead. Very reminiscent of the early ’80’s when Iococca took over. Cerberus needs to trim the fat, tweak the styling studio on mid-size platforms, offer greater variety of smaller entry level fuel efficient vehicles. Has Chrysler become too bureaucratic to adjust to the times more quickly? I believe they are the least of the big three. I suspect the smoke screen will clear after Nov 4th. Sorry DaveAdmin.