As editor of Here's a story that's of interest to every plastics component supplier in the automotive market.
Our sister paper, Automotive News, has a story on the Web today that General Motors Corp. is in negotiations to buy Chrysler from its German parent company.
"High-level talks are taking place between DaimlerChrysler AG and GM executives," the story says. "Although the two companies have discussed cooperation on a large SUV, say sources at both companies, the potential deal would go beyond limited product development alliances."
GM spokesman Tony Cervone is quoted declining comment, but adding: "We have always said that conversations (between GM and many other parties) have happened all the time, and many times they don't come to fruition."
A DaimlerChrysler AG spokesman declined comment, and the story adds that some sources have reacted skeptically.
Changes are definitely coming to Chrysler: DaimlerChrysler Chief Executive Officer Dieter "Dr. Z" Zetsche said last week that the company was open to all options, including a sale.
If GM buys Chrysler, I'd expect to see the some big changes, relatively quickly, in the companies' supply chains.
Comments (3)
I'm left wondering exactly why GM would consider this "merger," except maybe for the reason given by an analyst quoted in the daily newsline of your sister publication, Automotive News. One of the only reasons he could see for this acquisition was for GM "To maintain number one automaker in the world status, by combining it's volumne with that of Chrysler's," and to hopefully stave off Toyota from taking that crown for a few more years.
In light of the recent Fiat fiasco, I question if it would be worth the untold billions it would take to absorb Chrysler; the payoff would be a title, but also gained would be precious few useful or needed products in Chrysler's vehicle portfolio. It also calls to mind the K-Mart/Sears merger. Wasn't that wonderful?
Being the number three, or number two automaker in the world hasn't disuaded Toyota's loyal customers, or slowed Toyota's growing market share. But where they have succeeded is eloquent in it's simplicity and beauty -- provide reliable, well-designed, engineered and assembled vehicles. My sincere hope is General Motors will soon stop talking about it, and really grasp and implement this very simple concept.
Posted by Marshall Ronin | February 17, 2007 3:13 AM
Posted on February 17, 2007 03:13
It's like the bookie. With the way the economy is, it's to General Motors' benefit to bet on Chrysler and their product. This way, the worst that could happen is they break even.
Posted by told_u_so | February 18, 2007 2:49 PM
Posted on February 18, 2007 14:49
I believe this would be a good move for GM. Chrysler has been an innovative company in the recent past beginning the mini-van era and moving through the PT Cruiser & Crossfire model lines. It seems that GM could never latch on to these new and innovative model classes no matter how much they tried. I think that Chrysler could benefit from the dependability of the GM products and the stability that the GM nameplate should be able to provide to the Chrysler brand. I would suggest that GM leave the development team at Chrysler alone should the merger be successful.
Posted by Chris Dickson | February 19, 2007 8:22 AM
Posted on February 19, 2007 08:22