More news coming; keep an eye on Allpar over the weekend
We have now gotten three reports of a “big announcement” on November 4 or November 5, involving GM and Chrysler. Speculation includes:
- the usual “GM giving Cerberus GMAC in return for Chrysler” rumor
- GM being purchased (in whole or in part) by Cerberus
- the formation of a new jointly owned company (”letting the old ones die”)
- both GM and Nissan/Renault linking up with Chrysler somehow
- whatever your imagination comes up with. It’s not likely to be nuttier than what some of the analysts have suggested.
We don’t know what’s happening. However, I’m pretty sure they won’t start a new auto company and let the shells of GM and Chrysler fall apart just to have revenge on the unions for not demanding better executives. Likewise, I somehow doubt Nissan/Renault would want to get too tied up in a three way match.
We suspect there is a way for GM to buy Chrysler’s assets in such a way that either union agreements or, more important, dealer agreements fall apart. We’re not lawyers, though, so we don’t know if that’s possible. You can’t just close down a brand… or can you?
It is possible that all that’s going on is an agreement to consolidate Chrysler Financial into GMAC, completely. That wouldn’t really be worth all the hyperbole, though.
Again, we’ll keep you updated - as far as we can. But be prepared for something to happen on November 4 or November 5.
Oh, and Chrysler is celebrating 25 years of the minivan on Monday morning. If we’d had more notice, we’d be covering it. It should be a fun shindig for the reporters who go there - complete with a 1984 minivan and the original program head.
Probably better to wait until the morning after, though, wouldn’t it? Then the heated fervor will be at its peak about who won, who didn’t, what happened, who voted for who, why they voted, who voted, and yards and yards of mass media hype, analysis, and (NOT NEWS) spins. As well, if the election is NOT over, then the fever pitch will increase about which court it is going to go to, what the allegations are, who did what to who, why who did what to who, why they didn’t vote, who did vote, what the voters thinks, what the media thinks, what the people think (but no one really cares) and what the candidates are saying, doing, or suing. In any event, the exchange of a few (maybe 10?) billion over a couple of AMERICAN car companies probably won’t even make the major business news networks, let alone the mass media outlets. Get out the stone chisel and hammer to carve RIP on the granite slab. One of the major employment centers that has been the source of pride for America is going to be laid to rest. While the undertaker walks away, rubbing their hands together in preparation to counting all that money they got for the dirty deed.
The mass media coverage on the election is exactly why they would want to get the announcement out on Nov. 4th. The less the media covers this news the better, which makes me think it’ll be bad news for a lot of people.
I’m looking at a Chrysler Nissan tie up at this point. I read on MSN money that Cereberus and Goshen (spelling) have been in talks again. Lets hope and pray for a Nissan-Renault-Chrysler!
A merger with GM will be the sorriest marriage we could ever hope for. As bad as it was during the Daimler raping at least Chrysler was still a company. What a sickening end this will be to a closing on a great car company the will always IMO have built the most reconizeable cars in the industry.
The media is already doing eulogies for Chrysler. http://www.newsweek.com/id/166659
I have heard from a source that GM is now out. They were asking the Government for money, not to buy Chrysler, but as a bailout.
And I have also heard that if Nissan doesn’t work, that Daimler might step in again. But hey, anything is better than GM.
Oh stop, please stop. I am almost breathless form the laughter caused by that Daimler remark, Oh my sides are darn near slitting. Aha, ah, ha ,ha ,ha…. Ahhhh….., oh crap! You don’t think that’s possible do you? Oh man, no way! Of course they could get it for a song, which would make the whole “buy, sell, buy” thing profitable. But Daimler helped create this mess we’re in. Well, the mess Chrysler is in, not the mess GM and Ford is in. Hmmm… As bad as it would seem, it would be better than the Cerberus raping the whole country….. and getting away with it.
There are people out there that have oodles of cash sitting around that have no idea what to do with it. Listening (ok, reading) there Bill? Huh? How about if some of these “believers” in the American way of life that allowed them to amass their personal fortunes, risk some of it on helping their fellow Americans?
There is enough cash available in the good old US of A to get control of Chrysler. I mean if Bill Gates were to toss some of his billions into the fray think he couldn’t swing enough clout around to dump Nardelli? And put maybe Press or some other wise guy from the automotive world in the drivers seat? Maybe even re-hire Lutz? Christ, put Dave in the drivers seat. He couldn’t do any worse and he would listen to serious suggestions form the auto buying public about what the US auto companies should be doing?
Come on you guys in the top three percent. Help your country (and yourselves). You have the big stick, it’s called cash. Use it.
I am not sure that imploring someone like Bill Gates will do anymore than fall on deaf ears, and blind eyes. Considering what Microsoft has done to the computer world, I would not truly believe that Gates would be of any help in owning Chrysler. The issue with the monied people is that they do think differently, on a whole other scale, much of which is how to make more while hanging on to what they have already accumulated. They will kiss that money 10 times before they spend it. And in these times, they will kiss it 50 times before a dime goes out to something other than making more money. Money, property and power have always, and I mean ALWAYS controlled this country. Look at the considerations for the formation of the Constitution, along with the background of those signatories on it. Government is but a window for dressing, while the real power has never been revealed, and is still very much in control. Now more than ever. The government truly gave up any possible semblance of input when the Federal Reserve System took over the control of the currency. Those that abide by the “golden rule” know full well that he that controls the gold makes the rules. The current economic condition is but a scene in achieving the long held scheme in development of the “new world order” that we seem to be hearing more and more about. Guys like Bill Gates will be little more than “Pikers” compared to what is going to happen. Cerberus? Poof! America? Not in play as a power.
I am so disgusted (to be polite) at the chicanery concerning this whole ‘merger’ mess that I about ready to spit nails.
I just read something on Yahoo.com and things do seem to look good at all for Chrysler. I’m really upset that Chrysler may disappear, merger or not. All thanks to the stupid German company Diamler AG. Nothing against German people, just the company. They really screwed Chrysler over, and the damage seems so deep that a merger may not be able to save them. And a merger with GM is like signing your soul over to the devil.
I’m still not giving up yet!
The reasons for this debacle can be laid at the feet of many and it seems since the Daimler take-over, few good decisions have been made at Chrysler. When Cerberus bought Chrysler last year I was skeptical at best. While they claimed to desire a comeback to past iconic stature, I never for a moment believed there were noble intentions in the executive suite at Cerberus.
I have personally owned seven Chrysler products in my life. All tolled, my family has owned more than 45 Chrysler products over the years. I have been and remain, a die-hard Chrysler fan and owner. The thought of GM (which equates to trash-on-wheels, IMHO), owning and dismantling Chrysler is abhorrent.
This “merger” is nothing short of a kidnapping with no intention of ever asking for ransom or releasing the victim. This “merger” is robbery with intent to kill the majority of products now manufactured by Chrysler. I doubt the RAM would even survive.
Putting aside all the obvious product and marketplace losses which would result, the most hideous and criminal aspect would be the loss of so many jobs. Hundreds of thousands of human beings would be put out of work. The economic impact will be staggering to the entire world. From where I sit and read - it seems this is being viewed as simply “doing business”. I am appalled and mortified.
What the government should be doing is partnering with Canada, Mexico and Germany to come up with a package to salvage Chrysler as it is. This would include temporarily taking factory workers and putting them to work on infrastructure improvements. This would be a ‘win-win’ by employing those workers until such time as they would be needed back on the factory floor. It would improve the infrastructure of all the partner countries, keep wages flowing to workers and give Chrysler time to weather the storm while they continue to develop alternative fuel vehicles.
I can’t be the only one who has thought of this. I know it is not “profitable” to think in these terms, however it is in the interest of humanity at large. Therein lies the rub. Walter Chrysler, we are sorry for letting you down.
Was Cerberus just a middleman to get what Daimler really wanted in the first place. Remember the Valentines Day Massacre? GM wanted Chrysler then. Cerberus had completed the purchase of half of GMAC. So they were in contact with GM also. If Daimler simply sold Chrysler to GM it risked a public outcry. The pundits who praised Daimler for “saving” Chrysler a decade ago now acknowledge that Chrysler was bled to death by Mercedes’ thievery. Unfortunately it is mentioned in their eulogies for the American auto industry and Chrysler in particular. If we look at the activities under Daimler’s stewardship of Chrysler we find evidence for a cover up. Shortly after Mitsubishi was kicked to the side of the road, serious small car development was stopped. Talks were started with Chery and other Chinese manufactures. Jeep engineering was turned into a front man for the Mercedes SUV operations in Alabama. The resulting Jeep and Dodge products, the Grand Cherokee, Liberty and Nitro started tanking in the marketplace before fuel prices took off like a rocket. Dodge trucks became more of a consumer toy in the showrooms while Daimler directed the engineering resources into soon to be gone Sterling. Somewhere in all this has to be the realization that Plymouth customers were not coming back. My guess is that sometime in 2006 with the Dollar’s slide the celebrated LX sedans started getting pricey to build. The restyled Rams lost some of their edge and the styling on other vehicles exterior and interior was careless. No real money was put into updating the PT Cruiser. The Neon went away and the much loved midsized cars were going away. The platform which was used in the replacement for all these products was a hack job. Final development was again left to the customer. In 2006 anyone who was paying attention could see the shift in the market. SUV sales had peaked. Truck sales looked OK, but crossover sales masked the consumer shift toward smaller vehicles. Here comes General Motors. They will help with the disposal of the body. A dead Chrysler will put fear in the ranks of the UAW. The watchdogs at the Justice Department and SEC were neutered by the current regime in Washington. But the Union would raise hell. The media would amplify any hell the UAW elevated. When the odd bidding process began and Cerberus “won” immediately there were promises: “we won’t strip and flip Chrysler” and “we are in it for the long run.” Now the body is beginning to smell. GM was willing to bury it before. The guilty parties apparently didn’t see the financial collapse coming. The party insiders working for Cerberus certainly didn’t see an overnight shift in voter concerns from defense to the economy. GM is being blackmailed to finish the dirty deed before the new sheriff arrives in town. It was supposed to be quick and easy. There is collusion and a conspiracy to cover it up.