GM Buying Chrysler?

[HBarlow]

I was going to hold out until 2010 and buy a 2011 to replace the 2001, I MAY need to reconsider that plan if the GM takeover happens, because I doubt if the 4th gen body style in the HD line would ever happen, would have to consider buying a 2009 HD ASAP!

SHG

I agree with your analysis about the Gen IV body style. I would do the same thing if I hadn't already bought an '08. 2009 Dodge Rams may be the last good diesel light trucks built in America.

 

[AllianceDiesel]

God I hope this is true if this bullcrap deal goes through



"Once the deal closes, GM is only interested in keeping Chrysler plants where the No. 3 U. S. automaker has made significant investments in retooling, the sources said.



That could include Chrysler's truck plant in Saltillo, Mexico, the Jefferson North Jeep plant in Detroit and its Belvidere, Illinois car assembly plant, one source briefed on the talks said. The sources were not authorized to discuss the talks since the companies are saying nothing on the record. "

 

[Skydiver]

I just read this thread.

What will happen to the new "lifetime warranty" on Dodge products when the buyout falls/goes through? I have a close friend that is about to buy a High power car for his wife. He has forgotton about fuel prices last month.



I do remember Renault was on the bottom regarding customer satisfaction about 15/20 years ago. They were the worst. Maybe they are better now.

 

[DavidC]

Probably the same thing will happen with any warranty with a manufacturer.

when the company goes away so does the warranty. I guess I would worry about Dealer only replacement parts.



Dave

 

[Grizzly]

Not to worry. I'm sure that GM would honor any Chrysler warranties.

 

[AKaiser]

Say it ain't so. No V-8 Duracrap for me thank you. If you think QC is bad At Daimler/Chrysler, It's non-existent at General Mistake. Stuff will start falling off the truck before the paperwork is finished.

That's actually the reason why my family went from GM to Dodge in the late 50s. My Grandpa (Dad's side) had a brand new Chevy grain truck that the fenders fell off shortly after purchase. He traded it on an orange 1957 Dodge truck that he still had until sometime in the 90s. That was a tough old truck.

 

[raksasa]

Not to worry. I'm sure that GM would honor any Chrysler warranties.

I don't think GM wants another car company... just the cash from Chrysler.

 

[TFucili]

Not to worry. I'm sure that GM would honor any Chrysler warranties.

In my experience, they wouldn't even honor their own warranty. GM is the worst, IMHO, and has plodded along through inertia and sheer mass. Every GM truck I owned was a turd.

 

[amsoilman]

Weel, here's the latest on the GM/Chrysler deal.



The Associated Press: Chrysler executive downplays talk company for sale

 

[Gary - K7GLD]

Weel, here's the latest on the GM/Chrysler deal.



The Associated Press: Chrysler executive downplays talk company for sale

YEAH, suuuure ~ Chrysler was only in that GM headquarters building "for lunch"...



Hell, Chrysler WAS the "lunch"! :-laf:-laf

 

[HBarlow]

Chrysler is a car company. Chrysler execs and managers are concentrating on building and selling Chrysler cars, Dodge cars and trucks, and Jeeps.

Cerberus execs may be talking with GM execs.

 

[amsoilman]

Here's another interesting article about chrysler/GM.



Episode 9 - Economic 9/11, GM Management Shakeup, Chrysler Stops Production of Hybrids - Autoline Daily

 

[Grizzly]

Where's Lee Iacocca when we need him?

 

[carson6]

nothing wrong with gm except the paint and powertrains ..... look @ the cool changes they made to hummer and the allison trannys!

 

[Drewhenry]

allison life span shortened?

I remember the troubles that were to be had with auto trannies behind the first and 2nd gen Cummins. Wonder how the chevrolized allison will react to the amount of low end torque generated a REAL DIESEL.

 

[Bob4x4]

Short and sweet of it is if gm aquires Dodge we are all scewed



Bob

 

[raksasa]

More news

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<!-- end . primary-media --><!-- end . related-media -->DETROIT (Reuters) – General Motors Corp (GM. N) and Chrysler LLC's owners are discussing a merger that would keep some of Chrysler's operations intact and save jobs with the aim of securing U. S. government financial aid the high-stakes deal would require, people familiar with the talks said on Sunday.
A merger under these terms would give control to GM but leave Chrysler's owner, Cerberus Capital Management (CBS. UL), with stake of less than 10 percent in the combined company, according to the sources who were not authorized to discuss the talks publicly.

Such a merger would shake up the U. S. industrial landscape and create an automaker with about a third of the U. S. car market by sales. But its immediate success would hinge on the willingness of the next U. S. administration to step up with billions of dollars in immediate aid.

The amount required would dwarf the $1. 5 billion in loan guarantees that kept Chrysler from failure in the industry's last government bailout almost 30 years ago, the sources said. It would also require the backing of GM's board, which has been steadfast in backing Chief Executive Rick Wagoner through a painful and so-far failed restructuring effort since 2005. The board has withheld judgment on the proposed merger so far.

A deal brokered with the support of U. S. lawmakers would leave GM executives walking a delicate balance in managing a bigger but still deeply troubled automaker.

Costs and production would have to be slashed. But the merged company would also have to show it represented a less painful alternative for American workers and suppliers than the failure of one or both of the struggling auto giants.

"It's clear that there are three parties at the table. There's GM, Cerberus and then there's the government," said one person briefed on the talks.

 

[raksasa]

NEW YORK/DETROIT (Reuters) - General Motors Corp and Cerberus Capital Management have asked the U. S. government for roughly $10 billion in an unprecedented rescue package to support a merger between GM and Chrysler LLC, two sources with direct knowledge of the talks said on Monday.

The government funding would include roughly $3 billion in exchange for preferred stock in the merged automaker, according to one of the sources, who was not authorized to discuss the matter publicly.

The U. S. Treasury Department is considering a request for direct aid to facilitate the merger and a decision could come this week, sources familiar with the still-developing government response said earlier on Monday.

An injection of $3 billion in equity to support a GM acquisition of Chrysler would be roughly equivalent to the current, depressed value of the top U. S. automaker. It would also give U. S. taxpayers a large stake in the turnaround of a struggling auto industry that employs over 350,000 American workers and is credited with supporting employment for another 4. 5 million in related fields. Analysts see GM, Chrysler and rival Ford Motor Co having been driven to the brink of failure by a combination of management missteps, slowing global growth and problems in credit markets.

In addition to its equity stake, the U. S. government is also being asked to provide support for the GM-Chrysler merger by taking over some $3 billion in pension obligations under the terms of a proposal now before the government for review, the first source said.

The final component of the proposed support package would be a credit line that could include U. S. government purchases of commercial paper issued by GM to relieve short-term pressure on liquidity, the person said.

A combined GM-Chrysler would control roughly a third of the U. S. auto market by sales and would face immediate pressure to cut costs stemming from excess capacity in almost every facet of its business. Those would include a stable of 11 brands, roughly 10,000 dealers and some 97,000 union-represented factory workers, analysts have said.

But one of the conditions of the merger would be that GM-Chrysler would spare as many jobs as possible in order to win broad political support for the government funding needed to complete the deal, people familiar with the merger discussions said.

GM could not be immediately reached for comment. Cerberus and Chrysler had no comment.

 

[AllianceDiesel]

Found this on dealerconnect today doesn't really say anything but thought it was funny that they actually put a statement on the homepage.



Chrysler LLC Statement

On News Reports Regarding General Motors and Chrysler LLC









"Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time. "

 

[AKaiser]

I remember the troubles that were to be had with auto trannies behind the first and 2nd gen Cummins. Wonder how the chevrolized allison will react to the amount of low end torque generated a REAL DIESEL.

I go to Church with a guy who is high on the engineering team food chain at the Indy Allison plant. He told me that they were working with Cummins and Dodge on the Cummins-Allison combo, but Dodge or Cummins backed out. He also told me that the Aisin AS68RC is a LTC1000 knock off, and they are POed. Aisin was in on the project to build the TCs, got what they wanted and built their trans off what they learned from Allison.