General Motors attempting to buy Chrysler LLC
10-18-2008, 11:41 PM
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General Motors attempting to buy Chrysler LLC
http://news.yahoo.com/s/ap/20081011/...r_merger_talks
DETROIT – For General Motors Corp. to acquire Chrysler LLC and all of its warts, GM would have to get desperately needed cash. Lots of it, according to industry analysts.
With both automakers struggling to survive amid slumping sales, a slowing global economy and an unprecedented credit crunch, it's unclear whether Chrysler's majority owner, Cerberus Capital Management LP, would be willing to pay up, or whether the federal government might even get involved to save one or both struggling automakers.
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At it's principle, I've been saying from the start of this whole mess that the new hot word of the year, and the only thing that's going to save both the domestic banking industry and the domestic automotive industry, is "consolidation". Everybody huddle up, lean out the ranks, and press on.
The execution of that, however, will probably be... different. Colorful, even. Consolidation in the bank and auto industries within themselves would be an excellent idea... if both of the industries, particularly the auto industry, weren't headed by morons of truly astonishing magnitude. Less so for the banking industry, which has already begun to consolidate... and nothing obvious has really gone wrong yet.
But GM wants to buy Chrysler. General Motors. This is the company that, in response to the hybrid boom that's sweeping the world and letting Toyota and Honda build castles made entirely out of money, have produced (from Wikipedia):
* 2006 Saturn Vue Green Line Hybrid
* 2007 Saturn Aura Green Line Hybrid
* 2008 GMC Yukon Hybrid
* 2008 Chevrolet Malibu Hybrid
* 2008 Chevrolet Tahoe Hybrid
This is a company that, after the big SUV fall-out a couple of years ago, not only thought it would be a good idea to produce a range of comparatively mediocre performing cars that still largely underperformed the fuel consumption of foreign cars... but when that failed for them, decided to make their large SUV's into hybrids! Instead of jazzing up their mediocre car line-up and actually giving people a reason to buy them, they decided to invest their money in hybrid technology for their worst performing automobiles. And now they not only want the government to give them money and bail them out for making monumentally stupid business decisions, but they might want the government to help them buy another company.
My taxpaying dollars have gone to some dumb stuff before, but this is starting to cross the line. I understand that General Motors employs some 250,000 people, and if it goes under they'll all become unemployed, but you can hardly expect that a large number of those jobs will remain if General Motors is to stay in business, anyway. If GM buys Chrysler, I wouldn't be surprised if layoffs between the two companies exceeded 50,000 jobs... and that's even if they don't fail right after that.
This is sheer madness, and I can't believe GM's shareholders have allowed the company to stay on this path, because they're about to lose all of their money.
DETROIT – For General Motors Corp. to acquire Chrysler LLC and all of its warts, GM would have to get desperately needed cash. Lots of it, according to industry analysts.
With both automakers struggling to survive amid slumping sales, a slowing global economy and an unprecedented credit crunch, it's unclear whether Chrysler's majority owner, Cerberus Capital Management LP, would be willing to pay up, or whether the federal government might even get involved to save one or both struggling automakers.
-
At it's principle, I've been saying from the start of this whole mess that the new hot word of the year, and the only thing that's going to save both the domestic banking industry and the domestic automotive industry, is "consolidation". Everybody huddle up, lean out the ranks, and press on.
The execution of that, however, will probably be... different. Colorful, even. Consolidation in the bank and auto industries within themselves would be an excellent idea... if both of the industries, particularly the auto industry, weren't headed by morons of truly astonishing magnitude. Less so for the banking industry, which has already begun to consolidate... and nothing obvious has really gone wrong yet.
But GM wants to buy Chrysler. General Motors. This is the company that, in response to the hybrid boom that's sweeping the world and letting Toyota and Honda build castles made entirely out of money, have produced (from Wikipedia):
* 2006 Saturn Vue Green Line Hybrid
* 2007 Saturn Aura Green Line Hybrid
* 2008 GMC Yukon Hybrid
* 2008 Chevrolet Malibu Hybrid
* 2008 Chevrolet Tahoe Hybrid
This is a company that, after the big SUV fall-out a couple of years ago, not only thought it would be a good idea to produce a range of comparatively mediocre performing cars that still largely underperformed the fuel consumption of foreign cars... but when that failed for them, decided to make their large SUV's into hybrids! Instead of jazzing up their mediocre car line-up and actually giving people a reason to buy them, they decided to invest their money in hybrid technology for their worst performing automobiles. And now they not only want the government to give them money and bail them out for making monumentally stupid business decisions, but they might want the government to help them buy another company.
My taxpaying dollars have gone to some dumb stuff before, but this is starting to cross the line. I understand that General Motors employs some 250,000 people, and if it goes under they'll all become unemployed, but you can hardly expect that a large number of those jobs will remain if General Motors is to stay in business, anyway. If GM buys Chrysler, I wouldn't be surprised if layoffs between the two companies exceeded 50,000 jobs... and that's even if they don't fail right after that.
This is sheer madness, and I can't believe GM's shareholders have allowed the company to stay on this path, because they're about to lose all of their money.
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