Why GM won’t buy Chrysler

It’s been reported for a couple of days that GM will be buying Chrysler after a report of the two companies pairing up to produce a large Chrysler brand SUV. But skeptics are saying that GM will never make the move since the number 1 automaker in the world has been trying to slim down and buying Chrysler will only make it fatter and bigger. GM already has a lot of what Chrysler would bring to the table including a large variety of models, workers, dealers and assembly plants.

Nonetheless, Fortune Magazines Alex Taylor is saying that even if GM doesn’t end up buying Chrysler there may be still something left on the table for the two to discuss and benefit from.

First is the Jeep Brand. While GM is hoping that someday it can challenge the American icon as a mainstream SUV producer with the Hummer brand, Jeep has been diversifying its portfolio with some quality vehicles. Let’s leave Jeep to the mainstream and Hummer’s to the more off-road buyers.

Second, the two companies should team up to share diesel and hybrid technology. While GM is really backed up in this section, Chrysler has been doing well with their access to Daimler’s diesel technology.

Third on the list are Chrysler’s people. Alex Taylor thinks that replacing 75-year old Lutz with young Chrysler COO, Eric Ridenour, could freshen up things at GM.

He also says the best thing for Chrysler should stick with Daimler and that Daimler should worry more about its involvement with Mitsubishi and Smart.

Source: Cnn

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