GM in talks to buy Chrysler!

[mcsinfl]

I can't see it happening, I don't know how it would ever get past the monopoly laws...

 

[JJuday]

Doubt it, though conceivable. May raise too much anti-trust legislation. I remember a while back hearing of a possible Ford/GM merger, don't think it went far. DC would be far better off axing subsidiaries like Sterling, American LaFrance, and Western Star as these would be the weaker of their companies. I figured DC would have just built everything off of the Freightliner family of trucks anyway, not much sense in having three domestic medium duties all around the class 5 to 6 range anyway. I wouldn't mind a small 4X4 Freightliner with a Cummins!

 

[ddutil]

Today's paper says Magna is doing a due diligent. Source is Bloomberg.



March 14 (Bloomberg) -- Magna International Inc. , Cerberus Capital Management LLC and a team led by Blackstone Group and Centerbridge Partners LP are front-runners to buy DaimlerChrysler AG's Chrysler unit, two people familiar with the talks said.



Magna, a Canadian auto-parts manufacturer, and the leveraged-buyout firms have started detailed reviews of the automaker's finances and product plans. DaimlerChrysler executives aim to meet within the next few weeks to pick a favored bidder for the U. S. division, which lost $1. 5 billion last year, the people said.



Here's the rest of the story.



Dan

 

[MRFost]

The Dodge brothers, and Walter Chrysler must be turning over in their graves...

 

[TboneMan]

Today's paper says Magna is doing a due diligent. Source is Bloomberg.



March 14 (Bloomberg) -- Magna International Inc. , Cerberus Capital Management LLC and a team led by Blackstone Group and Centerbridge Partners LP are front-runners to buy DaimlerChrysler AG's Chrysler unit, two people familiar with the talks said.



Magna, a Canadian auto-parts manufacturer, and the leveraged-buyout firms have started detailed reviews of the automaker's finances and product plans. DaimlerChrysler executives aim to meet within the next few weeks to pick a favored bidder for the U. S. division, which lost $1. 5 billion last year, the people said.



Here's the rest of the story.



Dan

Magna already owns the remnents of New Venture Gear (New Process Gear), makers of the NV5600's , transfer cases and many dodge transaxles. Given the relationship developed during this transaction, one would think that Magna might have an advantage over others who might be interested.

 

[DCaswell]

Far mor likely that Chrysler will end up in bed with a Chinese Mfg. since we seem to be falling all over ourselves to do business there. Just like Japan & Germany in the 1930's A few years back they even got in bed with the French (Simca) so rational thought doesn't have to enter into the equation

 

[JasonCzerak]

It be a matter of minutes until you start reading:



"GM ownz Cummings!"

 

[DCaswell]

But plan on selling it to Furd

 

[Doubleclutch]

With all the bucks we're sending over to China, I'm sure that RED will be the dominant color scheme of the Chrysler line. F&GM don't have the money or good image, as mentioned above.
Greg

 

[Huskerman]

I for one am glad that GM isn't buying Chrysler. I can't think of a WORSE scenario than GM bringing its crappy quality and outrageous labor costs to Dodge products.



When I was taking MBA classes we studied the automobile market and due to labor costs (UAW) it costs GM on average $2000 more to build a similar vehicle than Ford and Chrysler.



I don't believe that Chrysler is in as bad a shape as GM because the UAW doesn't have Chrysler by the balls like they do GM. I know that combined debt and liabilities of Chrysler is less than GM although as a % it might be more due to GM's size. Somebody familar with GM's financials might correct me on that.



The trouble that Chrysler IS due to the fact that those morons in Germany (Daimler) don't understand the US truck market. They have demonstrated this time and time again with the most obvious example being the introduction of the 3rd Gen Quad Cab instead of a true Crew Cab.



Daimler screwed Chrysler up and now they are trying to dump them. That's what happens when you let a bunch of Euro's run an American truck company.



Huskerman

 

[zstroken]

I personally feel that Chrysler at this point is in very bad shape. The Daimler deal isn't as bad as everyone thought. I think alot of what is going on was done since it was a contract year and DCX was wanting major concessions from the UAW. I think it has kind of backfired and Daimler saw the money that was lost, as well as the public and it killed the forward momentum of the company. Hind sight if Lasorda had to do it again I would bet he wouldn't. It is too the point where $5 billion and you could be the majority shareholder of chrysler. Two private investment firms are looking heavily. One has put wolfgang(former CFO for chrysler group under Daimler rule) so these groups are serious. I work for DCX and it has been a great challenging oppurtunity, but things look bad enough that I am looking to jump ship. Ready to get out of the volatile automotive market. Magna acutally doesn't make any transaxles for chrysler. I am gonna say that a private investment group will buy chrylser, file for bankruptcy to shed pension, healthcare liabilities and to void UAW contracts. Then sell off all non car assembly operations. May keep the engines.

 

[ddutil]

Here we go again :-laf



March 23 (Bloomberg) -- DaimlerChrysler AG shares rose to the highest in at least six years on speculation that the German carmaker moved closer to selling its Chrysler unit, said analysts and traders.



The automaker received a proposal from Magna International Inc. and a private equity firm to buy Chrysler for as much as $4. 7 billion, Brett Hoselton, an analyst at KeyBanc Capital Markets, said in a report today, citing unidentified sources.



[... ]



Hoselton, based in Cleveland, said DaimlerChrysler is ``very interested'' in divesting itself of Chrysler. Under the deal, Canadian auto-parts maker Magna would take a 20 percent to 25 percent stake in Chrysler, and the private equity firm, which he didn't identify, 75 percent.



Chrysler spokesman Mike Aberlich had no comment.



``DaimlerChrysler is one of Magna International's largest customers,'' Magna spokeswoman Tracy Fuerst said in an e-mailed statement. ``It is imperative that Magna has a full understanding of the situation regarding the future of the Chrysler Group. Therefore, we continue to review potential alternatives regarding the future of the Chrysler Group. ''



Discussions about the matter are ``strictly confidential,'' Fuerst said.



[... ]



Voilà! Dan

 

[Bluebird]

Easy Fix...

Silverado Crew body, Cummins power, Allison transmission=Cool truck. As long as the Chevy part doesn't fall apart, I'd be good to go:-laf Had a '94 Astro Van for eight years, things fell apart#@$%! , not the engine, transmission, or diff

My $. 02, Patrick.

 

[JasonCzerak]

I sat in a crew cab chubby in the back there. . not at all different then the dodge. the Ford, about half way between the dodge/chubby and the mega cab.

 

[Huskerman]

If GM buys Chrysler, the wife's mini-van and my truck will be the last Chrysler product I own.



I have too many friends with GM products that are absolute POS's to get suckered into buying one of their products.



I travel on business frequently and it seems like I always get a Chevy (usually Malibu or Impala) and I have had a couple of company trucks that were Chevy and GM. All junk.



Personally, I would like to see Honda buy Chrysler although I know its not going to happen.



Huskerman

 

[BTowler]

We all know the saying, "Ford's are a two engine truck, Dodge's a two truck engine. " We could finally end all the bickering and insults by bringing everyone into one big happy family with a Ford/Dodge merger! The planets will allign, Democrats and Republicans will walk hand in hand, Osama will turn himself in, China and North Korea will forever drop the communist ideal, and there will be world peace and harmony throughout the universe!



On edit: And Microsoft will fix all the problems with Windows!

 

[biggieou]

We all know the saying, "Ford's are a two engine truck, Dodge's a two truck engine. " We could finally end all the bickering and insults by bringing everyone into one big happy family with a Ford/Dodge merger! The planets will allign, Democrats and Republicans will walk hand in hand, Osama will turn himself in, China and North Korea will forever drop the communist ideal, and there will be world peace and harmony throughout the universe!



On edit: And Microsoft will fix all the problems with Windows!

I think all of that is plausible except for the Microsoft comment!

 

[Huskerman]

I support Microsoft for a living and let me tell you; 9 times out of 10 is the user, not the OS.



Microsoft has significantly locked down Vista and now people are whining about it being too locked down.



Microsoft delayed Vista because they decided to completely recode every single function rather than use previous code and people complained about Vista being delayed.



Microsoft won't release it's code to just anybody and people are complaining that they are too "closed" and need to be more "open". Of course this would also result in allowing the script kiddies to get an even better idea about how to hack it.



Microsoft locked down system files making it more difficult to change or replace them (thus making it harder for viruses and worms to do their damage) and now developers are complaining about Microsoft being too secretive.



You dream of a day when Ford and Dodge walk hand and hand? I dream of a day when script kiddies grow up, move out of mommy and daddy's basement and become productive members of society rather than spend all their time trying to figure it out how to stick it to Microsoft.



I was part of my companies IT security team (top 100 in Fortune 500) and I can tell you from first hand knowledge that Linux has it's own security holes, its just that the loser hackers aren't interested in targeting an OS that is only deployed at less that 4% world-wide market on the desktop and less than 25% world-wide for servers. This compares to oever 90% desktop for Windows and 60% for Windows servers.



The hackers go for the biggest target plain and simple.



I will get off my soapbox now!! #@$%!



Huskerman

 

[BTowler]

I support Microsoft for a living and let me tell you; 9 times out of 10 is the user, not the OS.



Microsoft has significantly locked down Vista and now people are whining about it being too locked down.



Microsoft delayed Vista because they decided to completely recode every single function rather than use previous code and people complained about Vista being delayed.



Microsoft won't release it's code to just anybody and people are complaining that they are too "closed" and need to be more "open". Of course this would also result in allowing the script kiddies to get an even better idea about how to hack it.



Microsoft locked down system files making it more difficult to change or replace them (thus making it harder for viruses and worms to do their damage) and now developers are complaining about Microsoft being too secretive.



You dream of a day when Ford and Dodge walk hand and hand? I dream of a day when script kiddies grow up, move out of mommy and daddy's basement and become productive members of society rather than spend all their time trying to figure it out how to stick it to Microsoft.



I was part of my companies IT security team (top 100 in Fortune 500) and I can tell you from first hand knowledge that Linux has it's own security holes, its just that the loser hackers aren't interested in targeting an OS that is only deployed at less that 4% world-wide market on the desktop and less than 25% world-wide for servers. This compares to oever 90% desktop for Windows and 60% for Windows servers.



The hackers go for the biggest target plain and simple.



I will get off my soapbox now!! #@$%!



Huskerman

Chill out, it was a joke, sort of. I personally know a lot of tech's and IT guys who will argue that Windows is a pos operating system, it is too big, bulky and way too restricted. And I would double check your numbers, most hosting companies give you a choice of Linux or Windows based servers.



And Microsoft expects people to pay high prices for Vista now when the new os "Vienna" is on track, so far, for a late 09 release. I don't want to hear "Poor little Microsoft" stories! But that is not the point of this forum or my previous response, so that is all I will say on the subject.



Oh yeah, Biggie, I think you hit the nail on the head!

 

[Huskerman]

Chill out, it was a joke, sort of. I personally know a lot of tech's and IT guys who will argue that Windows is a pos operating system, it is too big, bulky and way too restricted. And I would double check your numbers, most hosting companies give you a choice of Linux or Windows based servers.



And Microsoft expects people to pay high prices for Vista now when the new os "Vienna" is on track, so far, for a late 09 release. I don't want to hear "Poor little Microsoft" stories! But that is not the point of this forum or my previous response, so that is all I will say on the subject.



Oh yeah, Biggie, I think you hit the nail on the head!

You are right, this isn't the correct forum. And yes, I knew it was a joke I wasn't offended nor angry. Just adding my two cents is all.



HOWEVER, my numbers are SPOT on as I looked them up before posting. I didn't want to say something that somebody could easily Google and prove me wrong.



As for your buddies, I have no idea who they are or what they do and of course they are entitled to their opinion. However I find that usually when people make a vague, broad statements like that they have an agenda or axe to grind. Tell your buddies I am sorry that Microsoft is evil for wanting to make a buck. That's what pisses most anti-MS people off.



My experience is based upon supporting a global, enterprise IT environment that includes MPE, UX, Linux and Microsoft. I can tell you that there is a reason that Microsoft now has the most install base of any OS. Oh, pass this along to your IT buddies as well:

The latest annual report on server reliability from the Yankee Group has put Windows 2003 Server above Linux–Windows 2003 Server was actually reported to boast almost 20% more annual uptime than Red Hat Enterprise Linux. The most solid server operating systems were UNIX based, HP-UX for example. Linux systems were said to be offline more often and for longer than Windows and UNIX systems...



The Yankee Group did make sure it was clear that this review is

independent, their work not being sponsored or commissioned by any of

the companies in question.