i’m genuinely amazed that someone read that much of it, though.

I agree with a lot of people here insofar as I’ll believe this when I see it. And while I can’t really accept this as a good idea, I do see some logic in it. And considering GM’s record with good ideas, I can imagine them going for this.

I think one distinct possibility is that GM is looking to acquire Chrysler’s manufacturing resources. There have been talks of a revival of RWD cars from GM on the zeta platform, but this isn’t really happening, and certainly not with any great speed. Yeah, I like the sound of the new Pontiac G8, but it’s still being built in, and imported from, Australia. So I really don’t know when GM is planning to have the domestic capability to put their upmarket models from Chevy, Buick, Pontiac, and even Saturn on rear- or all-wheel drive platforms. If it were to acquire Chrysler, it could do this.

As far as overlap is concerned, I don’t necessarily see this as being a huge problem, especially as far as most of the models discussed so far are concerned. Case in point, the Vette and the Viper. While the Viper arguably competes with the Vette, there are more than 90% fewer of them built every year. So, they could actually be complimentary models.

The only problem I see with this is GM not wanting to place the Viper above the Vette in its sports car pantheon. And it would be pretty confusing to have a system that looked something like: Base Corvette, Viper, Z06. And I don’t think it would feasible to move the Viper beneath the base model Corvette, because, as I understand it, one of the reasons it’s not built in huge numbers is because it has no large scale manufacturing infrastructure. But, as long as the cars continue to sell, and they’re still turning a profit, it only makes sense to keep building them.

As far as the rest of the overlap is concerned, GM could, theoretically, expand into new markets. For example, they could move Cadillac completely upmarket (maybe even build the Sixteen), and move Chrysler into Cadillac’s current position. Buick would stay more or less untouched, but would probably borrow a lot from the current stable of DCX. Pontiac could, possibly be moved into a niche where it’s level with Buick, but the attraction is performance rather than “luxury.” It’s kinda hard for me to make a huge case for retaining Dodge, though. Unless it was moved into a position where it became the performance variant of Chevrolet. There are obvious problems with that, though–primarily the Camaro and the Corvette. Throw the Challenger and Charger into the mix and it becomes even more complicated.

I don’t think it’d really be possible to re-brand any of these cars. I don’t think people would want a Dodge Camaro or a Chevrolet Charger. One option I think might be interesting is to “un-brand” these cars. It might seem counter intuitive, but I would argue that the individual model names are actually more valuable than the nameplates. So instead of a Chevrolet Corvette, it’s just a Corvette. And instead of a Dodge Challenger, it’s just a Challenger. There’s already an advantage insofar as all of these cars begin with a C, so there’s some alliteration happening (although the addition of The Viper would compromise this). Furthermore, if really necessary, they could be grouped as SS-cars, as Chevrolet had Super Sport and Dodge had Super Stock.

I’m not really sure how to work out the truck side of things, because, quite frankly, I don’t care. However, I will say that I’d actually see Hummer being discontinued and replaced by Jeep. The H1 is already gone, and the acquisition of Jeep makes the H3 completely superfluous. All that’s left is the H2, and honestly, how long can that keep going? The best thing they could do there would be to axe Hummer as a brand, and maybe keep the H2 on as long as possible as just The Hummer.

Also, the SSR could be grouped with the HHR and the PT Cruiser, resurrect a version of the Prowler, maybe diversify the line-up with some other retro-themed cars and bring back the Plymouth and Oldsmobile nameplates. (This could very well be a bridge too far).

All of the positive speculation aside, there are some serious problems with this. Most pressing, I agree, is where does the cash for this acquisition come from? Furthermore, as many of my proposals illustrate, a lot of American cars seem designed to compete solely with other American cars. So the engineering gene pool is already pretty thin, and if GM bought up Chrysler only to perform a massive cull, it would take the situation from bad to worse. The only way I see this working is if GM wants to attempt to compete in pretty much every segment that exists. If one looks at European companies, there are already established segments, a lot of them, that American companies just aren’t competing in. They might have some similar models, but they’re not really competing. I mean, yeah, the Z06 might very well be faster than the Gallardo, but as far as the marketplace is concerned, are these cars really competing with each other? No, no they’re not. The same is true for every single American luxury car. Are these cars genuinely competing with their European and/or Japanese counterparts? No.

I happen to think that if GM really wanted to, it could put models on the market that competed with BMW, Audi, and Lexus. I just don’t think that it’s ever going to happen. In that respect, I think this is a really dangerous game. If GM goes through with this and doesn’t do it right, it could be the end for GM and Chrysler. The one who stands to gain most from this could actually be Ford.

As far as having the money to buy it, it’s not like GM would be the first company to buy on a margin.

Plus ain’t chrysler worth more then GM

This is how I see a merger like this working. It can be successful if GM realizes they have to get rid of 90% of Chrysler Group’s vehicles, along with a portion of their own.

Of course, it’s just as likely that it won’t happen at all.

Toyota and Honda build one subcompact, one compact, one midsize sedan each, etc. and they’re booming. GM throws about 35 “different” vehicles/nameplates at each market segment and they’re suffering.

So of course if GM buys Chrysler it will make sense to kill off 90% of their nameplates. Why would you build a Dodge Ram pickup alongside the same-sized, same-priced Silverado? You would NOT, if you were a car company with a lick of sense.

Shame about their fate with DCX but when the acquisition was done 10 years ago MB wasn’t trying to sell sub-$30,000 secretaries’ cars. MB has been eating Chrysler’s bread. They should get rid of ‘em.

Interesting idea, giving MB the Saab business in return for the Jeep business… GM has just about murdered Saab, all those Subarus and GMC trucks running around in cladding…

http://www.marketwatch.com/news/story/story.aspx?guid=%7B3B60D753%2DCB55%2D417A%2DB1E9%2DBEC809C8A02C%7D&dist=rss

Looks like they’re still trying to cook the books for the audit, and need more creative time to do so.

Ford is now screwed. Maybe Nissan will look at them again and save them from their desperate situation.

I could almost see a practical, affordable, less costly to operate H1… “Trail rated” trumped by “Combat Rated” but add real civilian usefulness and you have a winner and not just a “wang enhancer”. The H1 and the “CJ” Wrangler sitting next to each other on the lot. Strangely appealing… But I think concerns of making Jeep too fancy and over priced are on the mark.

But all this has to just be a rumor. I know Chrysler has always been in some kind of trouble and maybe it should just fade away like AMC, but All the domestics lost a lot of money. Chrysler is just the only one owned by another company. Frankly, I think Chrysler might be better served by being bought up by some investment firm or some such with some automotive experience. Still, Chrysler was really on it’s way back up to being independently solid again, if only they could get out from under Daimler-Benz and make some decisions on their own.

Detroit made some bad choices and are paying for them. But Chrysler deserves better, at least they are trying. But unlike GM, Chrysler is really ham-strung by the Germans, who seem determined to keep the division (that’s what they are unless that wasn’t a buy out a few years back) from really succeeding. It would have been easy enough to just say, make fewer trucks, focus more on cars people want more as much as or more than they need, and no full-sized SUVs (The Durango/Aspen is good enough).

I think Dr.Z should really look at that before ever suggesting that Chrysler did anything wrong or is holding back “Benz”. Direct Chrysler to make products more in keeping with the Mercedes line-up (Classy, sporty, FR, and fine handling as much a possible) Make the Caliber a serious rally machine (The Neon SRT-4 was close but really needed AWD), make a smaller FR platform for the Sebring and the Avenger, push for more coupes (they make good convertibles and affordable – meaning easily sold – sports cars), a Viper worth what you pay for it (90K and the interior is barely on the Vette’s level), ditch the awkward, gaudy, styling for more purposeful (Dodge) and/or graceful (Chrysler) lines while being true to an American automotive heritage.

The list could cover whole books.

Anyway, Chrysler needs the realignment, streamlining, and some really serious re-tooling of their line-up. Besides what is GM going to do with another whole car company? They don’t need the extra. Need to focus on doing better, not being bigger… especially FORD.