Merger idea reeks of fail.
A+++++++++ BRILLANTLY THOUGHT OUT AND INTELLIGENT POST WOULD READ AGAIN!!!
:fail:
One big question is if GMAC is now a financial anchor to GM, what with the mortgage meltdown. It’s not clear if GMAC would be better in other hands, and not burdened with GM’s junk credit rating.
As for how this would work for GM, I’d bet that GM would sell alot of Chrysler’s assets and perhaps kill off brands with the deal.
I don’t think GM’s credit rating dropped (haven’t heard anything), just GMAC so if they sell off GMAC it might not affect the credit rating just allow them some cash flow to buy Chrysler. GMAC has really been going downhill with the company who currently owns them so I would be curious to see what would happen if they owned 100%. If GM did buy Chrysler they wouldn’t sell off that much right away I don’t believe because it probably wouldn’t make them anything right away and might actually cost them, unless they buy it for the right price. Killing off brands might not help them much either because GM is already kicking Chrysler’s ass so why get rid of someone who isn’t really a threat? Although you have a good point and it is definitely a possibility.
Fitch lowered GM to CCC from B- in September
http://money.cnn.com/2008/09/22/news/companies/GM_credit_rating.ap/
S&P put GM “under review” October 9th.
http://gosanangelo.com/news/2008/oct/09/dow-drops-660-points-on-gm-credit-rating-worries/
And obviously, this all impacts on their “costs of borrowing” which is what GMAC is all about.
And I don’t see this as much as GM buying Chrysler, but both GM and Cerberus shedding parts that are dragging them down (trade of evils, as it were).
Warren Buffet said on MSNBC a few months ago that he thinks America should stop making cars altogether because we have too many people in this country who rely that industry. That, and they can’t seem to make any real money. I can’t find interview but he mentioned the fact there used to be 12 or so American car companies back-in-the-day but now we have 3 left who are “holding on by the skin of their teeth.”
He also supports Obama, who said in the last debate that Buffet would be a great choice for his Secretary of the Treasury.
It’s going to be an interesting year…
And here are a few snippets from Bloomberg:
“The New York Times reported the talks yesterday and said Cerberus is also holding talks with automakers including Nissan Motor Co. and Renault SA, citing unidentified people.”
Nissan’s looking to buy in now too?
“Chrysler said in August that it is trying to sell its Viper sports car brand.”
No more Viper? (inbeforefinalgtssaysitwillneverhappen)
“Sumitomo Corp. and Tata Motors Ltd. are among the potential buyers for shares in Mazda Motor Corp. that Ford is trying to sell, Nikkei English News today reported, without saying where it obtained information.”
Tata buys Land Rover, now maybe Mazda? Indian made Rotary motors? :eekdance:
Well, I am the 3rd generation of my family that has been selling GM vehicles and I’m not stopping now. I have always loved GM and I will stick with them until the end because they have taken care of my family in hard times so I will return the favor. We have been growing while everyone else has been dying so maybe I should take Rick Waggoner’s job and get this shit turned around?
This country needs to start focusing on buying anything and everything that is made here. I’m not reffering to just cars, I mean everything and I don’t mean assembled here, I mean made from top to bottom (as much as possible) here. i don’t think there is much we can’t supply ourselves with.
I have said this all along, merge the lines.
You don’t need Chevy and GMC trucks.
You don’t need Chevy and Pontiac (and Buick) with the same vehicles
Saturn seems like it is doing well, leave them be
Hummer I read is doing well, leave them be
So kill off GMC and Pontiac to consolidate the lines.
Saab???
Updated - forgot about Buick.
And the other thing. I’m guessing we are going to see some more GM based dealerships shut down in the area. I think we have some of the most Chevrolet dealers in a cerain mileage span. You have David Chevy in the Falls, then Fuccillo in GI, then Paddock Chevy in Kenmore. You used to have Frontier /Flannigan for a while. Then you have a bunch of them in the southtowns. I think they are going to start thinning down.
What is a Saab? never heard of them…
yeah really, I NEVER understood that. I think Pontiac has it’s place though
hows buick doing these days?
HaHa exactly, who cares, they should kill of all the worthless sub brands in which all of the cars are rebadged versions of the POS’s that Chevrolet already sells too many of.
Buick is doing quite well for us thank you
wow. you work at a ford dealer? how do you not know the fusion in fact comes awd
ill stop in then soon, and my buddys truck would so run your little car over
i have yet to work on a awd fusion, they must not be very common or were a late 2008 release or something
EXACTLY! I get flamed by people when I say stuff like this, lol. I guess me and you are the only 2 that fully understand the impact that imported goods have on us as a whole.
Buy domestic stuff as much as you can!
Some people have talked about a temporary ban on imports and exports.
Personally I don’t think this country is quite ready for that.
One idea that I found interesting/funny was to only export wheat/corn and charge one barrel of oil for one bushel of food.:biglaugh:
I doubt they will kill another brand because that would mean they would have to buy out the dealers. They will let a bunch of dealers go under first before they think about that.
GM distribution network was built for market share in the mid 40%'s now it is in the mid 20%'s.
I remember someone telling me that Buick now is selling less cars than Olds did in the year before they got shut down.
That’s not suprising. You don’t see a ton of Buick’s on the road.
Merge Chevy, Pontiac, and Buick. Buying out the dealerships would probably hurt them initially, but the market doesn’t seem condusive to multi platform lines anymore.
It’s not like the 50’s and 60’s where you could tell the difference between the models
06release.my sister has one
WILL YOU BOTH STEP AWAY FROM YOUR EGOS AND GROW UP