Rumors swirl concerning the fate of Chrysler & Jeep.

My head is spinning trying to keep up with the bevy of rumors and speculation regarding the sale of Chrysler and the Jeep Brand.  GM is merging with Chrysler, Nissan/Renault is buying the Jeep line while GM takes the rest, GM is buying Chrysler to keep  Jeep and scrap the other lines, GM is gobbling up Chrysler to eliminate a competitor, and on and on.  Does anyone else’s head hurt trying to keep up with this stuff?  Regardless, the situation is one god-awful, ugly mess and it only looks to get worse before it gets better.  Here’s the latest information on the goings on.

Freep.com 10/22/08

“What will become of Chrysler? And of General Motors, for that matter?

Chrysler’s 80% owner, Cerberus Capital Management, desperately wants out of car and truck manufacturing, and will soon sell Chrysler to GM, merge it into the Renault-Nissan alliance, break it into pieces and pawn them, or just crash the Auburn Hills automaker into bankruptcy court.

GM, careening toward insolvency itself, sees in Cerberus-Chrysler a wad of cash that may help GM buy enough time to see the promised land of 2010, when the U.S. economy is stronger, when retiree health care costs shift to a UAW-run trust, when the electric Volt and other hot, new cars hit the market.”

Forbes.com 10/22/08

“Most of what you have read about the prospective deals for Chrysler involving General Motors, Cerberus Capital Management and Nissan/Renault is misleading.

Let me make this clear: Any merger between General Motors and Chrysler would mean the death of Chrysler and another coffin nail for GM.

If GM gains control of Chrysler, it would shut most of Chrysler’s plants and fire most of the workers. I have seen estimates that 30,000 to 40,000 people would lose their jobs, and I do not dispute these figures.

A Chrysler takeover could also be fatal to General Motors. GM needs every bit of its energy to save itself–and adding Chrysler would be a huge distraction, with no rewards…

Jeep would survive. It was part of Willys when it went down, and it survived. Jeep was part of American Motors and endured. The Chrysler minivan plant in St. Louis might last for a few years, but the bloom is off the minivan market. It is hard to see why GM would want 450,000 units of capacity for the Dodge Ram trucks. GM cannot sell the Chevy and GMC pickups it builds now. Nor do I think that GM would have much interest in Chrysler’s passenger cars.”

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One Response to Rumors swirl concerning the fate of Chrysler & Jeep.

  1. Amber says:

    Why not let Jeep become it’s own company? Split it off from a big-brother company?

    The brand is popular, the market is niche for the Wrangler – but the loyalty is strong. Maybe let the Jeep brand become employee-owned?

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