Friday, October 17, 2008
Come Together..Or Not
The merger talks between GM and Chrysler/Cerberus are heating up. The only reason the merger would be a good deal would is it would give Cerberus a percentage of GMAC which would give both car companies an infusion of much-needed cash. There are no other reasons to make this deal as these companies completely overlap. GM has a superior product line as opposed to anything Chrysler is making these days. The only line they would continue are minivans and some classic Jeep....that's it. I still think some 3-way consolidation between Nissan/Renault, Chrysler, and GM or Chrysler, GM and Ford would be more feasible. Each could help the other bring more efficient products and technologies to the market. One other thing that GM has to address RIGHT NOW is the "too many models - too many divisions" makeup of the company. That might have been fine and dandy 30-40 years ago, but is a huge drain on their competitiveness right now and they need to pare it down as soon as possible.
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