CEO Of Chrysler, Marchionne In Merger Talks With GM?

[eightballsidepo]

Just saw an article on autoblog that Marchionne is talking to GM about a merger with Chrysler.

Please say it ain't so.

Besides, wouldn't this end up being an anti-trust violation with GM/Chrysler merged?

[Fast_Mopar]

travelnutz wrote:
Maybe the truth hurts bad when read by a grease monkey wrench puller who doesn't even have a clue how the business world works?

We all have our opinions, and sometimes we agree and sometimes we disagree. But, insulting someone about their profession is really unnecessary.

[ROBERTSUNRUS]

DirtyOil wrote:

parkersdad wrote:
Here's my last comment on this thread. If I went to buy another truck and ram was $20,000 more than Chevy and Ford I would still buy the ram. That's how much better I think there styling, motors and the whole package is then Ford and Chevy. Over the last 12 years Chrysler has given me a plus service as well To each their own and buy what you want.

X2

:B

🙂 Hi, I don't believe your X2 either. :R

[ROBERTSUNRUS]

parkersdad wrote:
Here's my last comment on this thread. If I went to buy another truck and ram was $20,000 more than Chevy and Ford I would still buy the ram. That's how much better I think there styling, motors and the whole package is then Ford and Chevy. Over the last 12 years Chrysler has given me a plus service as well To each their own and buy what you want.

🙂 Hi, talk is cheap; I don't believe for a minute that you would be willing to pay $20,000.00 more for a Dodge. I have Ford in my blood and I wouldn't be dumb enough to do what you stated. :S

[travelnutz]

Maybe the truth hurts bad when read by a grease monkey wrench puller who doesn't even have a clue how the business world works?

[dodge_guy]

travelnutz wrote:
FCA's ultimate short term existence will depend on you blind suckers throwing ever higher purchase dollars at them and must continue with those who are born each day. However, the financial guru's sure don't see it that way. As what has been posted by the respected financial reporters and institutions now for months is that FCA's long term debt is unsustainable and it's only a matter of time before FCA's bankruptcy unless another sucker is willing to throw money at FCA and subsidize them on any expenses going forward.

Few are stupid enough to jump into that and given the long term track record established by Chrysler and Fiat over the last 50+ years, it's would be akin to jumping off the Empire State Building with the sure results from the sudden stop at the ground!

Selling a product at such a low profit level while the corporation's long tern debt continues to increase raises the finacial risk which vastly increases interests rates. A death spiral that's unavoidable! So many posters on this thread clearly do NOT understand at all how corporate financial structures function and servicing long term debt, yet give off-the-wall writings that don't cut it. Obviously they do not own or have owned a larger business with many employees and accrued ongoing related business costs and liabilities.

Money doesn't grow on trees and only comes from the actual competitive products, goods, and services produced by the business operation. Easy when your true profit is high, 6%+ with very low long term debt or zero long term debt, but almost impossible with appreciable long term debt and/or low profitability with constantly rising expenses. So many on this thread with "champange tastes" and only having a "tap water" budget!!! Stay tuned an education will be free if some haven't noticed the thousands of businesses that have cloed, gone bankrupt, sold, moved totally offshore, etc over the last 25-30 years... FCA is in major trouble and is seeking a way of survival but had burnt their bridges behind them so many time already and have a very bleak future at best. Even the Fiat Family wants OUT as has been posted many times and why do you supposed that is???

[travelnutz]

FCA's ultimate short term existence will depend on you blind suckers throwing ever higher purchase dollars at them and must continue with those who are born each day. However, the financial guru's sure don't see it that way. As what has been posted by the respected financial reporters and institutions now for months is that FCA's long term debt is unsustainable and it's only a matter of time before FCA's bankruptcy unless another sucker is willing to throw money at FCA and subsidize them on any expenses going forward.

Few are stupid enough to jump into that and given the long term track record established by Chrysler and Fiat over the last 50+ years, it's would be akin to jumping off the Empire State Building with the sure results from the sudden stop at the ground!

Selling a product at such a low profit level while the corporation's long tern debt continues to increase raises the finacial risk which vastly increases interests rates. A death spiral that's unavoidable! So many posters on this thread clearly do NOT understand at all how corporate financial structures function and servicing long term debt, yet give off-the-wall writings that don't cut it. Obviously they do not own or have owned a larger business with many employees and accrued ongoing related business costs and liabilities.

Money doesn't grow on trees and only comes from the actual competitive products, goods, and services produced by the business operation. Easy when your true profit is high, 6%+ with very low long term debt or zero long term debt, but almost impossible with appreciable long term debt and/or low profitability with constantly rising expenses. So many on this thread with "champange tastes" and only having a "tap water" budget!!! Stay tuned an education will be free if some haven't noticed the thousands of businesses that have cloed, gone bankrupt, sold, moved totally offshore, etc over the last 25-30 years... FCA is in major trouble and is seeking a way of survival but had burnt their bridges behind them so many time already and have a very bleak future at best. Even the Fiat Family wants OUT as has been posted many times and why do you supposed that is???

[DirtyOil]

parkersdad wrote:
Here's my last comment on this thread. If I went to buy another truck and ram was $20,000 more than Chevy and Ford I would still buy the ram. That's how much better I think there styling, motors and the whole package is then Ford and Chevy. Over the last 12 years Chrysler has given me a plus service as well To each their own and buy what you want.

X2

:B

[MM49]

What a truly terrible group. You should all re-read your post's
MM49

[parkersdad]

Here's my last comment on this thread. If I went to buy another truck and ram was $20,000 more than Chevy and Ford I would still buy the ram. That's how much better I think there styling, motors and the whole package is then Ford and Chevy. Over the last 12 years Chrysler has given me a plus service as well To each their own and buy what you want.

[hone_eagle]

Sustainable competitive advantage?
The minivan line and jeep for sure ,Ram trucks ? Everybody has a equal so not a bargaining chip.
That enough to bring to the table ?

[ktmrfs]

WSJ article today. GM and Ford total LT or ST debt issued= ZERO. Fiat Dept PAYMENTS $2.9Billion/yr, that $2.9B would FUND 2 new vehicle developments/year if it didn't have to go to debt payments. fiat loaded up on debt to get chrysler. Margins for fiat overall is 1/2 to 1/3 that of GM, Ford, Toyota, Honda etc. Fiat is about 3-4% margins vs. the others at 8-12% margins.

Given that if I was a car mfg, do I want to add that debt structure and margins to my business?? That's one question the other mfg need to be able to answer.

I think it will be hard for Fiat to find willing partners, as they are finding out now. Ovetures to major mfg have so far be quickly rebuffed.

In the end, looking either at investments, or aquisitions, which I have been part of, one of the veryt first question to as is "What is the compelling sustainable competiative advantage that Fiat has compared to their competitors? or that they can bring to our company?"

Not being part of the auto companies, I don't have enough knowledge to answer that question, but I'm sure the auto companies can, and have answered that question. And Fiat better be prepared to tell others what sustainable competative advantage they have.

Unless there is a strong competative advantage, there is no reason to proceed further, you walk away from the table.

If there is a compelling case, then it's time to talk business.

I guess time will tell us if any other car mfg thinks there is a sustainable competitive advantage Fiat can bring to the table.

[GoPackGo]

GM lost me when they got rid of Pontiac (GTO, Trans Am) and kept Buick (portholes).

[hone_eagle]

GM fan boards are discussing the possibility of a hostile takeover,Wall street could care less about fans and loyalty if there is a buck in it...........

[Fast_Mopar]

eightballsidepocket wrote:

There have been pluses and minuses to the Fiat merger. I think the biggest problem is Marchionne. He appears to not give a @#$@# about Chrysler production or it's impact on local and national economies.

I completely agree.