GM / Chrysler story
 

Maybe I should buy my Challenger soon.... from autoblog.com

In 1987, Chrysler purchased the American Motors Corporation from Renault, and all AMC models ceased to exist shortly thereafter. The only survivor was Jeep, which was really the only brand worth rescuing. Could something similar happen today if GM "merges" with Chrysler? Once again, Chrysler's most desirable asset is the Jeep brand, along with its minivans – a segment that General Motors has completely abandoned in favor of three-row crossovers. In such a scenario, the Chrysler and Dodge brands would basically cease to exist, with General Motors phasing the products it wants into its own lineups. Newer, efficient plants could be converted to build GM vehicles, which would allow the General to close older plants and lose excess production capacity that isn't needed. Any cash that Chrysler has on hand would allow GM to float its own operations that much longer before returning to profitability. This is a simplistic overview, but it is a possibility being floated around by analysts that would explain why GM has any interest in Chrysler at all. We imagine there would be huge opposition to the situation playing out like this, not the least of which would come from the United Auto Workers , which makes us wonder how likely such a "merger" could possibly be.

RE: GM / Chrysler story
 

FOXNews reports that the talks between GM and Chrysler continued today ... (saw this 10mins ago)

RE: GM / Chrysler story
 

I seriously doubted that Cerebus ever really wanted into the car manufacturing business. They saw a bargain deal on a company that appeared to be a very viable investment. They are investment people... buy low... sell high. No doubt they have done thier homework and have decided to at least entertain talks with GM. I can see where owning GMAC would fit much better in thier business model. In contrast GMAC is probably not where GMs main interest lies... but more capacity... some cash... and some upscale manufacturing facilities would play well into thier hands. Sounds like it could play out as a win/win for GM and Cerebus... and a lose/lose for Mopar fans... [&o]

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chris, your exactly right...they wanted to buy a troubled company at a bargain fix it up a bit and then sell it off for a profit.. now it seems like they will trade it for anything that looks like a better deal than chrysler.

RE: GM / Chrysler story
 

From Detroit Free press... looks like it may happen.... wow... I just don't get it..





GM-Chrysler merger talk
Financing may be holding up deal
Cerberus could put up the cash to make it work
By TIM HIGGINS and KATIE MERX • FREE PRESS BUSINESS WRITERS • October 16, 2008

Chrysler owner Cerberus Capital Management and General Motors Corp. are working as hard as they can to get a deal to merge the two automakers, but financing is the issue keeping them apart, a person familiar with the talks told the Free Press.

But the private equity firm is “willing to put in cash to any deal that makes sense,” another source said.
A merger is seen as Cerberus’ preferred solution for Chrysler, where U.S. sales have dropped 25% so far this year, the people said. But financing a deal such as this can be complicated and could involve money flowing either way. When Cerberus acquired majority control of Chrysler from Daimler last year, the $7.4-billion deal included then-DaimlerChrysler spending money to get rid of its U.S. unit.
Because neither Cerberus nor GM is making public statements about the talks, it’s hard to definitively say how things are going. What is clear is that a number of scenarios including a laundry list of automakers and possible equity stakes are floating around Detroit about the future of the auto industry and Chrysler in particular.
GM hopes to have a deal by the end of the month, the Wall Street Journal reported Thursday.
It noted that J.P. Morgan Chase, a key lender to both automakers, favors a deal. Citing people briefed on the talks, the paper said a deal is far from settled.
The turmoil in the U.S. auto industry could have historic ramifications. Industry sales in the United States are down almost 13%; GM’s sales are down nearly 18%.
Chrysler’s supposed kitty of cash could be useful for GM.
GM, which lost $18.8 billion in the first half of the year and has been burning through at least $1 billion a month, is believed to have enough cash to make it through the rest of 2008, but several analysts worry the company will not have enough for 2009.
Barclays Capital analyst Brian Johnson, in a note to investors, said GM is about $2 billion short of what it needs to make it through 2009 even with help from the government and drawing down an additional $3.5 billion on its credit line.
As a privately owned company, Chrysler’s finances are less clear, but all signs point to trouble. The automaker has seen the biggest sales decline in Detroit, and it has indicated that its automotive and financial arm lost $509 million in the first quarter of the year. It has said it had $11.7 billion in cash on hand at the end of June, and that it had earned $1.1 billion before interest, taxes, depreciation, amortization and before restructuring charges during the first half of 2008.
Chrysler had identified $1 billion in noncore assets to be sold to raise money and has said about half of that has occurred.
“People have been talking about the $11 billion that Chrysler supposedly had at the end of June. I think Chrysler needs that money just to maintain its operations as well,” said Aaron Bragman, an analyst with Global Insight. “If that cash is going to be used by GM to further its own operations, that means they’re going to shut down Chrysler.”
There could be other partners for Chrysler, perhaps Renault-Nissan. An executive with Renault reportedly said earlier this month that the automaker might be interested in Chrysler.
Chrysler and Nissan already have an agreement to build some specific vehicles for each other. Similarly, Chrysler is building minivans for Volkswagen.
“For a foreign automaker, there is value in Chrysler in its domestic capacity, in its domestic brands and dealership network,” Bragman said.
Some see Italian automaker Fiat as a dark horse candidate to acquire Chrysler, noting it has the means and motivation to make such a deal work.
In August, Tom LaSorda, a Chrysler president and vice chairman, confirmed that the Auburn Hills automaker had talked with Fiat, but he declined to say over what. “At this stage, there are no formal discussions going on,” he said back then.
Chrysler Chief Executive Officer Bob Nardelli has also said a Chinese automaker might be interested in buying Chrysler. “It depends on who has a hoard of cash in this economy because they’re not going to get a lot of debt out there,” Nardelli told the Automotive News.

RE: GM / Chrysler story
 

I saw this on Morning Joe this morning and it does look like the talks are getting heavier :-(

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and if anything positive comes out of this is that my pockets get heavier with my stocks but besides that i am worried about not being able to get a challenger in time,

RE: GM / Chrysler story
 

Looks like my Challenger is becoming more and more a limited edtiton.....but all for the wrong reasons.....
seems as if Chysler's five year plan for the Challenger maybe shortened by a few years.....

RE: GM / Chrysler story
 

Well since everybody seems to be into speculation the last few days an exercise.

We know 6400 2008 SRT Challengers are not rare. What does a GM world mean for the Challenger as a future collectible?

I’m still glass half full and looking forward to the Chrysler IPO in late 2010.

RE: GM / Chrysler story
 

6400 cars is not a lot ... considering a lot of those 6400 are celeberties and stuff that had pre orders.

but again , 6400 cars in a model year is nothing.

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And factor in all the ones being made into Cuda's or whatever and a 15% loss factor due to accidents. They keep getting more and more special.

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lets not kid ourselves this isn't gonna be a merger this is gonna be an elimination of Chrysler and all its products

RE: GM / Chrysler story
 

That is the ugly truth of it.

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GM is doing this to buy themselves a little more time before they also go under

RE: GM / Chrysler story
 

I'm doing some reading and it might be Cerberus doing the squeeze on GM. I still believe it doesn't happen.

RE: GM / Chrysler story
 

Okay, now you need to take this into account. What did AMC have before Chrysler bought them out. Pretty much nothing. The only thing they had in the car line-up was the Eagle which was why they named the division that replaced AMC Eagle. What did Eagle consist of? A bunch of rebadged Renault and Mitsubishi products and the reason behind this is that was exactly what Renault had planned for AMC. In this case Chrysler has the well selling LX cars, the Caliber no matter how much I hate it is selling in decent numbers, the Avenger and Sebring aren't selling well and frankly those two being replaced would be a gift, Chrysler doesn't have a compact anymore (the Caliber doesn't count), the minivans are still popular, the Jeeps are still popular, the Ram is still popular, etc. One of the last things GM would get rid of from Chrysler will be the LX cars as time has shown there is demand for them. Why would they when they are in the process of making competitors for them? They are doing it because they see potential.

If GM decides to cut vehicles from Chrysler, it would most likely be the following and in the order.

Durango/Aspen
Dodge Nitro
Avenger/Sebring
Jeep Commander
Jeep Compass

I wouldn't worry about this to be honest. Remember, the guys that are running GM now used to run Chrysler and they made Chrysler extremely profitable and competitive, only this time, they don't have the Judas who sold Chrysler to the Germans.

RE: GM / Chrysler story
 

Suggested reading: http://www.allpar.com/weblogs/2008/1...but-buying-gm/

Have hope my brethren.

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fox news reporting managers and senior execs at chryseler are looking for jobs anywhere and everywhere...renault eviently is taking over jeep with gm getting only mini-vans, trucks and mexican operations....everything else is going to be gone...fox business also announced some announcement is expected soon

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I'm a fan of FOX News a big fan but where are they getting this from the same news services reporting the same rumors?

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fox business channel said unknown source and talk were going to next level...whatever that means

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Awww' crap !

FOX news is very entertaining but a little one sided....

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so you are telling me that you think that Fox News is a chevy fan? Ive seen bias on left or right, not really for car brands though. I guess weirder things have happened

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oh great... now fox news is going to start camero threads on the Challenger forum... [:@]

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LOL Chris!

I know whatever happens I will have a challenger, and a TON of LX parts to get me through.

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You could always buy a spare Challenger Andre... ;)

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thats his plan Chris..........LOL

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Perhaps a pair, and a spare :-Þ

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hmmm... A pair, and a spare... sounds fair... [8D]

RE: GM / Chrysler story
 

While it would certainly improve our collectibility to have GM stop producing Challengers, the Platform being produced at Brampton is a high quality vehicle. Chrysler has been able to sell all of the cars produced pushing production up with multiple shifts. I have driven all of the cars and compared them to the competition and they are generally superior. It helps that Mercedes designed the suspension (really the whole platform). But this is a line that someone will keep, be it Chysler/GM or whoever.
My opinion, if GM merges with Chrysler they will keep Dodge as a separate performance line. And Dodge certainly has performance. Truck lines may merge, minivans may merge, but the Brampton plant will produce mid to fullsize cars for a long time. The Challenger is not a compact car. Mine barely fits in my garage.

RE: GM / Chrysler story
 

i am really debating just getting an SE right now before gm buys chrysler because I was planning on ordering a rt in a few months but with this scary mess in the way I am afraid that gm would cut the challenger out and I wont be able to even afford an rt. I can always swap in an engine and new tranny...right andre ;)? and still enjoy having a awsome lookin car for the meantime.

RE: GM / Chrysler story
 

The Challenger is the hotest car on the market and will be in the top five for at least the next 5 years they will promote the Challenger they wont kill it so the camero will sell they both will sell. GM had the Camero, Vette, GTO, Chevelle, Skylark GS, 442, all at the same time. WHY??? not everyone likes a camero they will buy what they like and for the next few years alot of people like Challengers. Hey look at the plus this might bring to the Challenger. GM might start funding the convert.

OH yea if anyone remembers I was the first to tell everyone on this site back in June that they would NOT build the Challenger convert. Also that there would be a limit on SRT8's does anyone remember what that number was? ok that is it for Budvision history 101 for today

Goodnight

RE: GM / Chrysler story
 

i love you?

RE: GM / Chrysler story
 

It's thoughtful, intelligent entries like these, RLSH, that make me glad you have returned to the forum. Although I DO disagree with your assessment of the Caliber. As a road vehicle, yes, it's worthless in gas mileage. But for strictly inner-city use, it's a fine vehicle. ;)

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why dont you ever say things like that about me roswell................:(:(:(:( lol

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Heck, Kevin, I always believe in letting you speak for yourself! :D

RE: GM / Chrysler story
 

hehe I see what you did there..

how's the SE doin? getting any stripes or mods soon? I am planning on getting a white SE soon due to the scare about gm buying chrysler. I was getting an RT in a few months but I rather be safe then sorry.

RE: GM / Chrysler story
 

I've already got the Ridergraphix rocker panel strobe stripes with the word Challenger cut out in old-school script. The only other things I've had added are fog lights (you had to order a package in order to get them from the factory, so I had the dealer install them) and the SRT-R/T gas-cap cover. The pic was taken before I got the fog lights installed.



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RE: GM / Chrysler story
 

So Roswell... what kind of HP gains did you get with the SRT-R/T gas-cap cover..?? ;)

RE: GM / Chrysler story
 

I'm sorry, mopar, but we folks from the Amazing Future World of 2009 are no longer allowed to discuss such information with you poor unfortunates from the turn of the century. Apparently, too many of you have been attempting to get your Horseless Carriage Challengers to perform like our Modern cars by adding such things as "turbo" systems and even going so far as to imitate our Modern Vinyl Stripes. Surely, you can realize that passing out knowledge about our vehicles could be dangerous in your "current" time period. :D

RE: GM / Chrysler story
 

All this means, mopar, is that it's time for another moment in Challenger history! ;)



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