Nov 26 2008
November 26th, 2008When I heard about the potential merger between GM and Chrysler I was beside myself. I wanted to take my Challenger and burn it to the ground and send the nice folks at Cerberus the video to make them think twice about what they were doing.
Thankfully calmer heads, and a desire to keep the challenger, prevailed.
I read recently that the talks between the two have failed, here is an excert from a Reuters news report
“Merger talks between Chrysler and General Motors Corp were dropped earlier this month when GM said its near-term focus was on shoring up its own cash position.”
That’s a good thing. GM would have ripped up Chrysler, killed three quarters of it, and taken the good bits for themselves.
Could you picture a Hemi in a Corvette? Sure it might make the Corvette seem like a worthwhile car, but it would be sacrilege. Of course GM would have put the Cummins in their trucks. The Duramax is junk compared to the Cummins.
I bet Ford would love to get their hands on the Cummins to replace the PowerJoke, but lets not talk Ford/Chrysler. That would be worse.
So the talks have failed, and I’m a happy camper again. But is Chrysler? Apparently not.
Cerberus is apparenly demanding more than 7 billion dollars from Daimler over losses that have occured since the buyout. But wait, didn’t Cerberus just pay 7.4 billion for for 80.1% Chrysler? Yes they did.
Basically Cerberus is saying that Chrysler was damaged goods before they bought it and that Daimler knew it. Thus making the sale some kind of bad faith arrangement.
I doubt it will happen, but if it does then this means that Chrysler was essentially a free acquisition for Cerberus.
I could go on for hours about why Chrysler and the rest of the North American auto manufacturers are in serious trouble. But we won’t go there. Suffice it to say that Chrysler is not part of GM.
And for that, I’m happy.
