Holy you-know what, GM may buy Chrysler!

Jeep Dawg · **Posted:** Fri Feb 16, 2007 9:55 pm

CNN is a joke, and CBS follows real close behind it.

I hope that this is not true. Who knows what will happen to the Jeep line. GM line of trucks and stuff are ugly and OVER PRICED. That is my thought about GM.

I thought that GM was having a load of problems?

USAFCOP · **Posted:** Fri Feb 16, 2007 10:14 pm

Gang. do not get scared, Chrysler may not have the sales numbers right now, but they are better off financially than GM. I did some research on it for my Financial management course last month, and as the begining of this thread stated, GM's resources are not liquid enough to even consider buying Chrysler, or even leasing the name. GM is going under if they do not create more liquid (easily converted to cash) assets, the last thing they need is more leverage against an already strained system, it would drive their debt vs equity ratio way too high to make any profit, unless their goal is to buy it and shut it down to eliminate competition... But they can't even afford that.

Renault would be the better option for us as customers though since renault was associated with AMC in the US a while ago, maybe they would let Jeep go back to its roots a bit.

tjkj2002 · **Posted:** Fri Feb 16, 2007 10:19 pm

Quote:

Renault would be the better option for us as customers though since renault was associated with AMC in the US a while ago, maybe they would let Jeep go back to its roots a bit.

That would be nice,I loved my AMC Grand Wagoneer(R.I.P).Just as long as the Korens or China don't get ahold of Chrysler we should be fine.It would be cool if L.O.S.T. bought Jeep but I think that's really a pipe dream.

wendell · **Posted:** Fri Feb 16, 2007 10:37 pm

I reported this acouple of months back if you remember, the post read something like, "Diamler looking to spin off chrysler'. However it doesn't make me feel any better when you guy's thought I was crazy to be right. Chrysler is going somewhere, Diamler wants to drop it like a bad habit. I've had jeeps from willys, kaiser, amc and chrysler, but as a loyal ford man, I can not buy jeeps from chevy. Thier like the anti-christ to a ford man. So there would be no new jeeps in my future, however, thank goodness there are plenty of old jeeps to go around. I would still have to humble myself to go to a gm dealer for parts at the risk of being seen by friends. Probobly would get parts out of state. The good side if any would be that jeep would be back in american hands. I'm very confident that gm would butcher the jeep name given time. The guy's over at JU really would have something to gripe about as the wrangler would be getting ifs, you know it would happen. Lets just go to sleep and when we wakeup, maybe this will all have been a bad dream.

1300ZUK · **Posted:** Fri Feb 16, 2007 10:45 pm

tjkj2002 wrote:

Quote:

Renault would be the better option for us as customers though since renault was associated with AMC in the US a while ago, maybe they would let Jeep go back to its roots a bit.

That would be nice,I loved my AMC Grand Wagoneer(R.I.P).Just as long as the Korens or China don't get ahold of Chrysler we should be fine.It would be cool if L.O.S.T. bought Jeep but I think that's really a pipe dream.

well Grand Waggys were a Kaiser design, not that it matters.

Pablo · **Joined:** Thu Feb 02, 2006 10:06 pm **Posts:** 1201

I think this could be a good opportunity for some private equity group to buy Chrysler or Jeep. I think Jeep is in the same situation Harley was in the 80's. In the 80's Harley had horrible quality control, was trying to make bikes more like everyone else was and was loosing money like a sieve. Sound familiar? They had the same kind of suit mentality running the company-- suits that did not understand, and could not even correctly identify-- their core market base. Harley about went under but they were bought by new investors-- mostly employees and customers and a private equity group. Now look at Harley-- they practically can print money by selling anything with their name on it because of the market loyalty to them.

Jeep is in the same exact situation-- it is a specialty brand that has been turned into some B-rated mass market mobile that can't compete with the other mall crawlers. So it is the leadership that needs to go-- and the dealer network. The engineers need to be left alone to do what they do. The dealer network is crap-- it is hit and miss at best. The real problem is that the dealer network is antiquated. It is unneeded overhead. How much of the vehicle cost goes to the sales manager, the sales person, the receptionist, the plants in the office, the gee wow displays and all the crap that you don't care about. My guess is a whole lot of the $$$$$$ you pay for each vehicle. And what does the customer get in return for that? The customer gets crappy high pressure sales tactics, overpriced parts, and idiot service people who cannot do anything but swap parts when the computer tells them. No value add there. The dealer is the car industry equivalent of the local insurance office-- a cost center with no value add whatsoever.

If I had billions sitting around-- I would buy DC, put it in bankruptcy to rid myself of the stupid dealer and union contracts that handicap every US car company and then sell myself the rights to the brand and start all over with a new buy-direct sales model. No more idiotic unionized health care for people who retired 15 years ago. Ridiculous. No more sleaze-ball sales people and dishonest mechanics at crooked dealerships. I would simply sell independent service center's the rights to fix/modify and maintain my brands vehicles-- pending that they meet the service criteria. This would be more like how Microsoft and Sun hand out certifications to people who pass their standards-- it creates business for the mechanics, creates value for the parent company and customers love it because they are not locked into anything-- they have a choice of where they want to go to get stuff fixed. The CRD has shown me that dealerships are called stealerships for a reason and the first car company to deep six them for this model is going to be the one that runs away with the market (assuming the cars they make are competitive). To make it even better- sell the crappy dealer network to China for lots of cash-- they deserve each other anyway.

snowsport · **Joined:** Tue Oct 18, 2005 11:52 pm **Posts:** 1211

Some great debate going on here. Pablo, I agree that the dealership style of selling vehicles is outdated and horribly expensive (wasteful), both to the corporation and to the consumer. I don't agree that Chrysler is the only auto maker that can't compete or that Jeep can't compete with the other mall crawlers. The thing of it is, auto makers aren't competing just with each other any more. They are competing with other factors that have evolved: unrealistic consumer expectations (we don't want vehicles anymore, we want life-style affirming symbolism) a unionized work force that has its own huge pressures for survival and amazingly bureaucratic top-heavy costs, an uneven political playing field (watch out for the Chinese vehicles in the near future whether they buy Chrysler or not) and more. I like the idea of buying vehicles direct from a menu and cutting out the dealerships. I also like the idea of mechanic/service pools that are not affiliated with auto makers at all. I believe the auto makers have no business servicing their product, as that is (as we have all clearly seen and experienced) not their area of expertise. The auto industry is going to change dramatically in its structure and ways of doing business soon, because it has to. That's my three cents, adjusted for inflation.

RespectMyLibertay · **Posted:** Sat Feb 17, 2007 5:06 pm

Yeh....YEH! :evil:

Down with the man!
All these "revolutionary" ideas make me want to start it...the revolution that is. Down with the dealerships! :twisted:

Seriously, though, you guys are right. Anyone who owns a vehicle is packing the Benjamins into the dealership owner's pockets, and we, the consumers, are getting screwed over, money and service-wise. It sucks. And I used to think they at least kept vehicles safe, but after this whole ball-joint craze and the recall being done with the same old crap, I realized they really, truely DON'T CARE about us.

gopherbeats · **Posted:** Sat Feb 17, 2007 6:32 pm

http://news.independent.co.uk/business/ ... 278126.ece

"General Motors, America's largest carmaker, is exploring the possibility of a bid for Chrysler, the No 3, which was put up for sale this week by its German parent.

DaimlerChrysler and GM are understood to have begun negotiations that might lead to joint ventures on some models, or an outright bid. A combination of the two would create an industry giant, controlling brands from Chevrolet to Dodge and Jeep.

The reports, published yesterday in an industry magazine, sent DaimlerChrysler shares up 6 per cent, despite widespread scepticism that an outright bid by GM would be forthcoming. Both sides are in the midst of painful restructurings of their ailing US operations. Chrysler announced this week it would cut 13,000 jobs."

RFCRD · **Posted:** Sat Feb 17, 2007 7:09 pm

As with many very large companies, what you will likely see is a private "equity partner" emerge to take partial ownership of DCX. It's a face saving way for the parent corporation to get a cash infusion for the purpose of cleaning up and packaging the company for resale. It's also used as a convenient way to pump-up the stock price, giving exec's a chance to cash out their personal stock at inflated prices. This would be a good time to watch stock sales activity from the exec board to judge the health & direction of the company. The only way GM can pull this off is if they have an equity partner already positioned to make the marriage.

Big D · **Joined:** Mon Jun 05, 2006 10:08 pm **Posts:** 349

If this happens it will be a disastrous move for both. They have too many conflicting platforms, and the dealership buyouts ....Just does not make sence!

jeepskate · **Posted:** Sun Feb 18, 2007 1:42 am

This sounds like the captain of the Titanic taking on more ballast.

BDK · **Joined:** Sat Dec 30, 2006 3:45 am **Posts:** 31

I have $10. lets do it. Can I be CEO? :lol:

seriously lets do it!!! Make jeep what we know it should be.

65thKJ · **Posted:** Sun Feb 18, 2007 3:29 pm

I know a lot of you guys might disagree but if Jeep were to be bought by another company I would rather it be GM than a foreign company. I have always bought vehicles from American companies and plan on always doing so. I have had GM, Ford, and Jeep vehicles before and have been happy w/ all three companies. I would hate to spend money on a car when the profits would be going overseas(I was even a little hesitant to buy a Chrysler product because of the Daimler-Mercedes merger)
Also, to me GM isn't that bad of a company, and I like the Hummer line. The H3 has an option for 33s from the factory and has better ground clearance from the factory than our liberties do. Only prob is that it is overpriced.

wendell · **Posted:** Mon Feb 19, 2007 8:14 am

Ford needs to buy chrysler, that way they will have jeep and land rover together under one roof, that would be a neat combonation.

Gris · **Posted:** Mon Feb 19, 2007 9:59 am

wendell wrote:

Ford needs to buy chrysler, that way they will have jeep and land rover together under one roof, that would be a neat combonation.

If I didn't hate Ford, I'd much rather them buy Chrysler than GM. I respect ford as a company and respect the products they make. I can't say the same for GM. Every time I get into a Pontiac, I feel like it's a shoddily designed plastic deathtrap.

I don't really hate Ford, but my Brother-in-law swears by them to the point that every time he calls me to do something, get a load of drywall, tow a trailer, pull his crappy Bronco out of 18" of snow this weekend, he's telling me how awsome Ford is and tires bald blahblahblah, Ford best in the world blahblahblah, 4x4 not working in either truck blahblahblah, hitch wiring corroded blahblahblah.

THEY suck at vehicles, but I don;t want to hear him say "haha, Jeep sucks so bad that Ford had to bail you out" as we drive around in my Jeep looking for his exhaust, which fell off driving down the highway.

wendell · **Posted:** Mon Feb 19, 2007 10:19 am

A good 4x4 has little to do with brand and more to do with gears, tires and ground clearence, A LSD or locker would help as well. I wheel with family and friend that have everything from old scouts, broncos, f-150's, my ranger, toyota's and even a samuri, of cours jeeps and they all do a good job, some are more fixed up than others. Even in stock trim with good ties they can follow the leader in most places. Thats what I've been saying, if it has 4x4, you can wheel it and have fun, even an escape or compass, for sure the patroit. Sure they have thier limitations, but you can still have fun as long as you know what the limitations are. I hope we learn more this week if this gm thing is a hoax, or for real.

1300ZUK · **Posted:** Mon Feb 19, 2007 10:50 am

HYUNDAI!!!

Jeger · **Posted:** Mon Feb 19, 2007 10:58 am

1300ZUK wrote:

HYUNDAI!!!

Now there's an interesting thought. 1300ZUK

I like this talk of getting rid of the dealerships. It would be nice if we could turn them all into used car dealers. If you want a new vehicle, you go to your local factory access point or even online, you place your order and you come back to pick it up after its made. No lot full of cars and some salesperson "giving you a deal" if you buy THIS one off the lot. You get what you want and the price is what it is with only a standard percent markup above manufacturing costs. Every vehicle that rolls off the line is already sold.

1300ZUK · **Posted:** Mon Feb 19, 2007 2:38 pm

well

http://business.timesonline.co.uk/tol/b ... 400177.ece

Holy you-know what, GM may buy Chrysler!

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