ice-capades Posted October 17, 2008 Share Posted October 17, 2008 I haven't had time to read all the messages in this thread but felt it necessary to add what I could based on what I was told this morning. GM is out of cash and trying to press the issue of a Chrysler buyout/merger in order to get their hands on Chrysler's reported $11.9 Billion of cash on hand. Although GM sold a majority (51%) interest in GMAC to Chrysler's owner a while ago, GMAC was very involved in the mortgage business and is in serious trouble. Reports within the industry are that GM is now out of cash and desperate for any cash that it can get its hands on at this point. I was told this morning that GM is now paying its Dealers $250 for every vehicle financed through a bank source. The information sources are very, very reliable. I'm only passing the information on because I thought it was important and of interest. Quote Link to comment Share on other sites More sharing options...
96 Pony Posted October 18, 2008 Share Posted October 18, 2008 (edited) To the posters ranting on GM, point your wrath at the deserving parties. This goes back to hack number one, Bob Eaton, who sold Chrysler down the river to Mercedes and floated away to Florida with his golden parachute. Next in line would be the managers at Mercedes, who munched at the trough of Chrysler's income in the years while Mercedes was performing poorly, then sold Chrysler off to Cerberus with a bare product cupboard. And finally, the wipes at Cerberus, who entered claiming all things great and wonderful ("We're in this for the long haul!"), when of course everyone familiar with them knew they were financial buzzards looking to part it out and make as much money as possible. I don't think it's really fair to GM to lay this at their feet - they're just looking to make a good deal and improve their prospects for survival - which of course should mean that they wouldn't touch this with a 10 foot pole. I truly feel for the workers in the path of this debacle, but the only realistic thing to do is get out on the market and find something else. The era of long term employment has been over for some time (unless you work for the government), so it's time to leave on your terms and do what you can for your family. I can't argue with anything you have posted except for one thing - the Chrysler/Dodge nameplates remained alive. This appears to be nothing more than huge corporate greed to destroy one of the Big Three just to get their hands on their cash on hand, additional share of the government bailout and to dump their money losing GMAC on Cerberus in hopes of saving a failing company. As far as I am concerned, there will be only one American automaker - Ford - left if this transaction goes down and the Chrysler/Dodge nameplates disappear. Thankfully, Ford is addressing their auto lineup now because I think a lot of people will be pissed if GM totally kills Chrysler and will switch to Ford instead. Edited October 18, 2008 by 96 Pony Quote Link to comment Share on other sites More sharing options...
2005Explorer Posted October 18, 2008 Share Posted October 18, 2008 I kind of wonder if the buyout (might as well call it what it really is) is even necessary to get rid of Chrysler as a competitor. Considering their sales have dropped the most of any automaker and considering they don't even lease anymore what is left for the final nail to be put into the coffin? I think just the fact that most consumers see them as a dead brand after all of this merger talk and with little new product that people care about other then the Ram, Journey and the minivans I think they could be out of business soon without a merger or buyout. Maybe that is part of GM's idea here. Go into buyout talks to scare the consumer away and let them self destruct. Ok, I know that is a bit of a conspiracy theory, but you never know what they might have in mind. Last question I have is that if GM buys them out will they honor the Lifetime Powertrain Warranty? Quote Link to comment Share on other sites More sharing options...
suv_guy_19 Posted October 18, 2008 Share Posted October 18, 2008 I kind of wonder if the buyout (might as well call it what it really is) is even necessary to get rid of Chrysler as a competitor. Considering their sales have dropped the most of any automaker and considering they don't even lease anymore what is left for the final nail to be put into the coffin? I think just the fact that most consumers see them as a dead brand after all of this merger talk and with little new product that people care about other then the Ram, Journey and the minivans I think they could be out of business soon without a merger or buyout. Maybe that is part of GM's idea here. Go into buyout talks to scare the consumer away and let them self destruct. Ok, I know that is a bit of a conspiracy theory, but you never know what they might have in mind. Last question I have is that if GM buys them out will they honor the Lifetime Powertrain Warranty? I'm not sure what will happen up here. In the Us Dodge may be nothing, but here its the second best selling brand in the country. i really hope this doesn't ture out bad for consumers. Quote Link to comment Share on other sites More sharing options...
twintornados Posted October 18, 2008 Share Posted October 18, 2008 Last question I have is that if GM buys them out will they honor the Lifetime Powertrain Warranty? I am willing to bet that even if GM and ChryCo don't merge, that the Lifetime Powertrain Warranty program will fade out of existence, But if it does, then they have an obligation to continue that program to those that already have it, but are under no requirement to continue it on new sales. Quote Link to comment Share on other sites More sharing options...
MarkFive Posted October 18, 2008 Share Posted October 18, 2008 On top of everything else, I bet Nardelli walks away with another significant Golden Parachute to add to the one he got from Home Depot. Quote Link to comment Share on other sites More sharing options...
J-150 Posted October 18, 2008 Share Posted October 18, 2008 I am willing to bet that even if GM and ChryCo don't merge, that the Lifetime Powertrain Warranty program will fade out of existence, But if it does, then they have an obligation to continue that program to those that already have it, but are under no requirement to continue it on new sales. as Chrysler has not claimed bankruptcy, they are still bound by all contracts they entered into. GM as the new owners are also obligated to maintain those contracts. Just like they will be obligated to delivery all contratced UAW compensation to the hourly Chrysler workers. So all Lifetime warranty holders will continue to hold them. Quote Link to comment Share on other sites More sharing options...
TStag Posted October 19, 2008 Share Posted October 19, 2008 Latest rumours are that TATA and possibly Fiat are both looking at buying Chrysler. I wonder if they might be thinking about doing something in partnership? It's fairly logical of course. TATA would simply hand Jeep over to Land Rover and get them to maybe turn it into a cheaper version of itself, whilst doing a lot more platform sharing. Then maybe they would send Fiats into the US as Dodge's and perhaps Chrysler would beg, borrow and steal from JLR/ Fiat.... I'd guess it may mean they survive as brands, which would be debatable in a deal with GM. Quote Link to comment Share on other sites More sharing options...
TomServo92 Posted October 19, 2008 Share Posted October 19, 2008 Latest rumours are that TATA and possibly Fiat are both looking at buying Chrysler. I wonder if they might be thinking about doing something in partnership? It's fairly logical of course. TATA would simply hand Jeep over to Land Rover and get them to maybe turn it into a cheaper version of itself, whilst doing a lot more platform sharing. Then maybe they would send Fiats into the US as Dodge's and perhaps Chrysler would beg, borrow and steal from JLR/ Fiat.... I'd guess it may mean they survive as brands, which would be debatable in a deal with GM. Is there anyone TATA isn't thinking of buying??? Quote Link to comment Share on other sites More sharing options...
Edstock Posted October 19, 2008 Share Posted October 19, 2008 IF Tata has deep enough pockets, the dealer network might be worth the red ink. Quote Link to comment Share on other sites More sharing options...
TStag Posted October 19, 2008 Share Posted October 19, 2008 Is there anyone TATA isn't thinking of buying??? A fair point but in Land Rover they have a motive to want Jeep. And in cash terms they are part of a huge conglomerate with massive financial power in a weak market. Although if I were TATA I'd just wait for Ford to get in trouble and then just do a deal with the US government to rescue it on the cheap. Quote Link to comment Share on other sites More sharing options...
TStag Posted October 19, 2008 Share Posted October 19, 2008 IF Tata has deep enough pockets, the dealer network might be worth the red ink. Yep 3,500 dealers many of which could be better served selling JLR cars. Equally though JLR dealers in Europe could sell Chrysler/ Dodge products. Quote Link to comment Share on other sites More sharing options...
LincolnFan Posted October 19, 2008 Share Posted October 19, 2008 Yep 3,500 dealers many of which could be better served selling JLR cars. Equally though JLR dealers in Europe could sell Chrysler/ Dodge products. Yes, that's exactly what a Jaguar buyer would want next to the vehicle he wants. A freaking ugly cheap as hell Dodge C-car (forgot the name). Quote Link to comment Share on other sites More sharing options...
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