Why would financially strapped GM want to buy the ailing Chrysler Coporation? GM cannot take care of itself.?

Question

I read this on the Internet. GM is the main contender to purchase the ailing Chrysler Corporation now that the Daimler Company is wanting to get rid of Chrysler. Mercedes could not make it profitable. Why would GM want to take on such an undertaking since it cannot make itself profitable? It completely makes no sense to me.

Answer 1

Because GM has no idea what it's doing either, unfortunately.
GM would be buying a small amount additional (but declining) marketshare, so it makes mo sense to me either. They need to focus on building better cars.

Answer 2

First,Mercedes didn't have to make Chrysler profitable.When Daimler bought Chrysler it was making plenty of money on it's own.Chrysler has actual made more money since 1998 than Daimler has,they just don't like the Chrysler image.When Daimler purchased Chrysler,Chrysler had almost 9 billion dollars of cash on hand.As for GM being the main contender,I think Magna is right now since Magna already has operations at some Chyrsler plants.Where I work at the Toledo Jeep Wrangler assembly plant they run the paint shop.If GM did buy it,it would help with thier pension plans since both GM and Chrysler plans are overfunded.Also GM has 3.8 retirees per worker while Chrysler only has 1.4 it would help to reduce their pension cost.Also the Jeep brand is very desireable,Jeep Wranglers are the hottest selling vehicle in the US right now.Also GM needs a place like the Chrysler Tech Center.

Answer 3

DM is not interested in selling Chrysler. Chrysler has gone into an agreement with Chery Autoworks of China to have a limited partnership that will bring small subcompacts from Chery to USA, Asia and EU within the next few years. Do a search on the internet for more info on this partership.

Answer 4

GM has and will always take care of itself. Buying an ailing auto manufacturer at a bargain price is a smart move. It will remove Chrysler from competition.

Answer 5

What do you propose on doing with 3 million extra unemployed workers? Michigan's unemployment is already properly over 9%. Your taxes are already procuring their unemployment, welfare, nutrition stamps, and dozens of alternative government aids. cities, counties, states, and the federal government all matter on tax money from those human beings and businesses. All that money going away is going to reason much extra harm. If any of the super 3 bypass under the different 2 will carry on with. Then the providers will bypass under by way of fact earnings margins are so small they could no longer cope with any loss of corporation. of direction Honda, Nissan, Toyota, BMW, MB, Hyundai have flora in the US and purchase aspects from the comparable providers. they might additionally go through extensive losses and close their US flora.

Answer 6

Increased Market share, Chance to get new technology from Chrysler and Mercedes. It also reduces there competition.

Answer 7

For any company that would be interested in Chrysler, it boils down to one word - JEEP!