GM could absorb Chrysler and end its 83-years of existence

Posted: Oct 16, 2008
Filed under: Chrysler, GM, Industry News

Continuing the GM/Chrysler saga, it is being reported that GM could absorb Chrysler LLC and end its 83 years of existence is one option being discussed by the General and Cerberus Capital Management which owns 88 percent of Chrysler.

The move would be similar to Chrysler’s 1987 acquisition of American Motors Corp and would give GM some of Chrysler’s 2.7 million in annual sales. Of course GM, Cerberus and Chrysler all declined to comment on the situation once again.

Many auto industry analysts believe that the move makes sense for GM to eliminate Chrysler as a competitor. Instead of letting it run as a separate division like Daimler did, Chrysler would be completely gone and GM will slowly work its way into its auto making and other operations.

 

Source: Detroit News

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  • Turkle
    I see that GM wants the biggest slice of that 25B Gov't bail out money that it can get. I think that all of the small electric car manufacturers here in the U.S. should sue for a peice of that pie.

    GM makes less and less sense that I can understand. Let me see if I can understand this logic... GM might sell Hummer, only to replace it with a manufacturer of the Jeep Grand Cherokee, Jeep Liberty, and a whole line up of large and midsize trucks/SUVs. They would be entangled in all of the supplier lawsuits Chrysler has initiated for the last few months, and have model redundancies throughout their vehicle line up. Yeah, this makes total sense.
    The flip side is to let Chrysler get bought up by a foreign competitor and allow them to gain what little market Chrysler still holds onto.
  • Dustin
    Holy crap, is it just me or is this story really intense, if GM does absorb Chrysler, what would happen to all the vehicles, would Dodge and Jeep still be running?
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