GM merger would kill challenger
 

http://www.autoblog.com/2008/10/30/t...nate-chrysler/

Dodge Challenger and Many Other Chrysler Models Not Likely To Weather a GM-Chrysler Merger
 

I will be monitoring this very closely in case I have to order one very quickly. Very sad news for American autoworkers.

Dodge Challenger and Many Other Chrysler Models Not Likely To Weather a GM-Chrysler Merger

Date posted: 2008-10-31 15:59:00.0

SOUTHFIELD, Michigan — Only the Dodge Ram, some "core" Jeep vehicles and Chrysler's minivans are likely to survive if a pending merger between General Motors and Chrysler happens, according to a new report by Grant Thornton LLP, a tax and advisory group here. Such iconic vehicles as the Dodge Challenger and Charger are notably absent from the list. The Dodge Viper brand is currently up for sale, as Chrysler tries to shop the brand in advance of a merger.

"Chrysler has 26 model offerings, of which Grant Thornton considers only seven to be core and likely to be retained [56 percent of sales]," said the report, which was released on Thursday. "These include the Dodge Ram pickup truck, core Jeep-brand vehicles and the company's minivans."

The report notes that half of Chrysler's 14 existing manufacturing facilities likely would close. "A plant reduction of this magnitude would equate to about 12,000 production jobs lost plus another 12,000 administrative positions," said Grant Thornton.

"Chrysler as we know it will cease to exist very soon," said Kimberly Rodriguez, principal of Grant Thornton's automotive practice. "At this point, there are very few options available to either company." She adds: "If one or the other company were to fail, we would face a much bigger calamity — the collapse of the North American supply base and the potential endangerment of all three Detroit automakers and businesses that depend on them."

Inside Line says: Some storied Chrysler nameplates may be casualties of a merger between Chrysler and General Motors. — Anita Lienert, Correspondent

RE: Dodge Challenger and Many Other Chrysler Models Not Likely To Weather a GM-Chrysler Merger
 

Here's an excellent commentary from the Detroit Free Press:


Bail out GM, others, with conditions

BY MARK PHELAN • FREE PRESS COLUMNIST • November 2, 2008

If I were the U.S. Treasury Department, I'd offer GM executives $10 billion, on the condition that they walk away from Chrysler and never look back.

Or $15 billion, $20 billion... whatever it takes to ride out this economic storm without getting panicked into a desperate and ill-advised merger.

For politicians who talk about helping Main Street as well as Wall Street, the cost of low-interest loans to help automakers weather a recession is chicken feed compared to the $1 trillion-plus already approved for banks and financial firms. The payoff is also easier to foresee and more immediate protecting hundreds of thousands of jobs for blue- and white-collar workers at factories, dealerships and other businesses across the country.

I'd insist on other conditions beyond banning a GM-Chrysler merger. Any U.S.-based automaker would qualify for low-interest loans as long as management could convince me it has a feasible plan for the company to survive long-term. A plan that includes alternative-fuel vehicles and a thriving lineup of cars of all sizes. Cars designed and developed to compete with vehicles from anywhere on Earth. Great cars to end Detroit's reliance on trucks.

GM has such a plan. Ford does, too. They've learned from the mistakes they made in the 1980s and '90s. The recent introduction of successful vehicles such as the Chevrolet Malibu, Cadillac CTS, Ford Fusion, Escape and Edge and GMC Acadia prove it. Cut them checks.

Chrysler's leaders, on the other hand, spent much of the nine years they were part of DaimlerChrysler approving vehicles that didn't stand a chance in the market the Sebring sedan and Jeep Compass, to name two of too many. New owners from Cerberus arrived a year ago and dropped even the pretense of a long-term strategy.

I'm sure Cerberus would happily cash a federal check, but nothing in its behavior suggests the money would secure Chrysler's future.

Cerberus' ownership of Chrysler is a strip-and-flip operation. Step one: Lay off people, cut investments, close plants and drop models to make Chrysler a small, easily digestible acquisition. Step two: Sell it to an automaker that will build something new from the ashes.

Chrysler possesses many valuable assets. It builds great minivans so good that Volkswagen hired it to provide the new Routan. Nissan has stopped developing big pickups because it saw the new Dodge Ram and realized Chrysler does the job better and cheaper. Chrysler also has a sales network that blankets North America, the renowned Jeep brand and the legendary Hemi V8 and 300 sedan. It's a smart acquisition for a number of automakers.

But not GM. That combination could devastate both companies rather than save either of them. GM and Chrysler have too much overlap in vehicles, sales outlets, manufacturing and engineering. A merger would assure widespread closures of plants and dealerships, and thousands of job losses from the factory floor and engineering office to the reception desk and service bay at your local dealership.

I don't see the feds underwriting that, but an aid package that required a merged company to keep extra factories, trucks, brands and dealerships as has been suggested would set GM's own reorganization back years and threaten the company's future.

It's a matter of time before Cerberus sells Chrysler. The government may have a role in facilitating that deal and protecting workers, but not at the cost of overburdening another struggling U.S. company.

Contact MARK PHELAN at 313-222-6731 or phelan@freepress.com

RE: Dodge Challenger and Many Other Chrysler Models Not Likely To Weather a GM-Chrysler Merger
 

Is it me or does it seem every reasonable priced performance machine Dodge makes has its life cut short? Or maybe I just have bring cars bad luck?

Remember the Neon SRT-4? 0-60 5.8 second time, 21-22K price. Fastest car in america at that price and NO commericals, no publicity outside a few car mags, and this was in the peak of what I call the F&F (fast & furious) era.

I saw Ion redline and cobalts SS ads all time. Dodge left me scratching my head on that one. Hopefully they keep both the challenger and camaro, market the challenger down to the mustang and make the camaro a little more upmarket. Worst case, Hopefully I can get one used one day and make it into a mean custom. I thinking a white sleeper with saddble brown interior or a purple sleeper.

RE: Dodge Challenger and Many Other Chrysler Models Not Likely To Weather a GM-Chrysler Merger
 

Just remember joey... It aint over till its over... ;)