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GM to buy Chrysler????????

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Author 
e

02-15-2007 10:24:50




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I found this article interesting. Since GM was flirting with bankruptcy last year, I'm surprised they are looking at buying another company with the same woes.




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Former New Car Buyer

02-15-2007 19:19:07




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
The cost of living has skyrocketed in the past couple of years while wages have went nowhere.The price of a new vehicle is going to have to come down or fewer and fewer new vehicles will be sold every year.Lots are now priced to where only the wealthy can afford them.

GM cant afford to buy Chrysler.The big 3 may all go down the toilet.



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davejoe

02-15-2007 16:41:18




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
Mr. Cook in Iowa, what do you do for a living? I would like to not buy whatever you or your suppliers make. Nasty statement, but the american brand cars support alot more american workers than the foreign makes do. Basically you are saying that what my friends, neighbors,relatives and countrymen produce is not good enough for you. Alot of local economies are dependant on the U.S. auto industry. If there is a break in the circle, ultimatly we all pay a price. Dave

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RodInNS

02-15-2007 20:31:30




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 Re: GM to buy Chrysler???????? in reply to davejoe, 02-15-2007 16:41:18  
Actually, most of the "American" brands have partnerships and partial ownerships of most of the Jap brands, and components are sourced from around the globe for all of them. The point of assembly is based more on closeness to final market than anything else. Toyota is actually doing a lot of their assembly work in Canada, in a non-union plant I think. They're still all well paid jobs, good benefits, and all that. The difference is in the product that they're building. It's well built, engineered, etc, and it lasts a long time, and doesn't cost any more, or little more than a lot of the junk that Ford/GM/Chrysler are selling against it. Detroit management has sat way back and rested easy for way too long. They've relied on customer loyalty to keep buying their products, rather than building good products. That's not really a reflection of the people on the floor doing the work. It's a management problem in that they didn't find and solve the problems that exist. Now they're paying for it, and they'll continue to pay for it if they don't go bankrupt first.
Take a car like a VW Jetta that we have here. For the most part they get whatever price they want for the cars because they sell themselves. They don't have the value in them that they once did, but they're not bad.... but they're in demand. Detroit needs to create demand again. I would also agree with another remark that labor has actually become a rather small component of manufacturing costs in general. Automation has taken care of that....

Rod

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no deeres here

02-15-2007 17:26:12




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 Re: GM to buy Chrysler???????? in reply to davejoe, 02-15-2007 16:41:18  
Davejoe you make a good point but I believe that Mr Cook has pretty much summed up the general opinion of the north american car buying public. If you buy north american you can expect to have problems but most foreign cars have better quality control and less problems. For people who rely on their cars every day to get to work etc they don't have time for downtime. If you watch tv every time you turn around the NA automakers have some kind of sales gimmic to try to move cars. How many sales gimmics does toyota run per year to sell their cars? They don't need to the cars sell themselves. After buying ten or more NA built vehicles form all three NA builders my last one was a VW (for the diesel ) and it has been far and away the best car I ever owned. My three trucks have all been Ford.

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Dave H (MI)

02-15-2007 17:24:00




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 Re: GM to buy Chrysler???????? in reply to davejoe, 02-15-2007 16:41:18  
Hi Dave. I grew up in Detroit area and our family's fortunes would rise and fall with the auto industry. A lot of what our friend from Iowa says is true, if not popular. I put myself through college at great expense but could not get the income or benefits that the Ford worker next door enjoyed as he attached wipers to Lincolns at the Wixom plant. It is a difficult topic. On a statue across from the Iowa capitol building there is a sign engraved that says "right is right because God is God." People there have a lot of strong beliefs and are not shy about expressing them. I think that is what you are hearing in the post below. They are by and large some pretty decent folk. I've seen both sides of this auto industry thing. Each side has it's points.

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Doug in IL

02-15-2007 16:20:35




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
I think it may be they know that the way to crush the "upstarts", like Toyota, in the American market, is to follow the example of Cat and Deere. Just get so big and powerful that they can just "take" the market. Everybody needs a car. If 90% of the cars left are GM's, then 90% of the buyers will have to be GM customers. It may or may not work. But, it sure worked for Cat and Deere. There is no competetion at all for Cat and very little for Deere. They have just became so dominant in their respective markets. Maybe GM's going to become the next "Big Dog". By the way, labor costs are not the issue these companies want the public to believe. Labor costs in a D11 Cat used to amount to less than 10% of the wholesale cost of the product. All labor costs, not just union labor costs. Or so I read. It's probably less now. I imagine a car would fall in the same range. 90% of the costs have nothing to do with that old, nasty, dreaded UAW.

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Midwest redneck

02-15-2007 14:33:23




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
Chrysler needs to be bought by a wealthy guy with lots of cash to spend. And then run the company like a business, not a company setup to enrich the chiefs and payout big bonuses and bennys to the UAW and salary people. Then you would see results.



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msb

02-15-2007 14:30:08




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
The price we pay for unbridled prosperity of the 60s & 70s with no consideration for how the manufacturers were going to pay for the concessions they gave to the work force. Its easy to say yes when the times are good and everything you build has a ready buyer waiting right outside the door. IT'S EVERYBODY'S FAULT. Don't get me started.



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Bus Driver

02-15-2007 13:50:44




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
There are a couple of "USA" vehicle brands that I will not consider buying anymore. The problem is the dealers. They have such crooked service departments. The "service writers" must be on commission. They come up with the most false stories about my vehicle needs this or that in addition to the problem that bought it there. "Your car (52K miles) needs a new alternator. The bearings in the alternator are bad. The cost is $465.00". I declined the offer. Checked the alternator when I got the car home. Alternator fine, did need new belt to drive the alternator, $12.00 at local parts store. The alternator (and the replacement belt) was fine for another 45K miles until the car was totaled in an accident. I could tell many more examples.

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Pappy

02-15-2007 16:30:45




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 Re: GM to buy Chrysler???????? in reply to Bus Driver, 02-15-2007 13:50:44  
I had an unusual experience with a local car dealer. I asked them about the automatic light dimmer on my car and they said that this company had never offered this feature on any car. I have had two with this feature. Finally talked to three people at the dealership and all confirmed that I was out of my mind. Anyway, the auto dimmers work just fine.



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Bus Driver

02-16-2007 15:10:04




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 Re: GM to buy Chrysler???????? in reply to Pappy, 02-15-2007 16:30:45  
Cadillac offered the auto dimmer back in the 1950's. Sometimes it went wild.



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Dave from MN

02-15-2007 13:28:48




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
Wonder what they all did wrong, werent the dalmerchrysler the only ones reporting decent profits the last 1/2 dozen years, or so I thought I heard. I dont hear anything really bad about their product and they seem to have very nice products in every market.



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dhermesc

02-15-2007 15:15:37




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 Re: GM to buy Chrysler???????? in reply to Dave from MN, 02-15-2007 13:28:48  
The last 12-18 months haven't been kind to Chrysler. They got into a huge over stock situation and discounted their cars (especially fleet sales) to the bone. Now they have a massive number of low mileage fleet cars coming out on lots to compete against their new car sales (repeat of the Ford Taurus only on a compay wide scale).



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Don L C

02-15-2007 11:59:11




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
....Ford is closing plants also....one here in Cincinnati,Ohio and another on the chopping block...



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thejdman01

02-15-2007 11:51:05




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
I hear toyota is looking.



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j cook/iowa

02-15-2007 15:55:45




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 Re: GM to buy Chrysler???????? in reply to thejdman01, 02-15-2007 11:51:05  
There is absolutely no way that TOYOTA could do anything more to straighten out Chrysler than DaimlerBenz could. The problem is that the Unions WON, for too long, and got too much, also for too long. Additionally, those Union workers have adopted too many bad habits, chiefly involving not working very hard, not caring about the quality of their work and they have little pride and no company loyalty. loyalty towards the employer in their case is nearly exclusively loyalty to their union.

I drive Toyota. I will NEVER drive FORD, GM or Chrysler. I simply HAVE to get VALUE for the Automotive dollars I spend---those dollars are too hard to come by for me to really want to squander them foolishly by purchasing over priced, low quality junk.

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mj

02-16-2007 19:07:45




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 Re: GM to buy Chrysler???????? in reply to j cook/iowa, 02-15-2007 15:55:45  
third party image

All hail the rising sun? Not now, NOT EVER!



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Midwest redneck

02-15-2007 17:16:55




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 Re: GM to buy Chrysler???????? in reply to j cook/iowa, 02-15-2007 15:55:45  
I have some info for you. I put 131,000 miles on a 1997 Escort, a great car, no problems just tires/brakes/tuneups/oil changes. I sold the car (with no problems) USA made Escort. I just bought a 2007 Chevy Cobalt, 100,000 mile power train warranty, built very well and GM stands behind the car, $14,400 not a bad price. I dont buy a Toyota or Honda or a Nissan because they dont employ me or any family members. They employ Slant eyed people on the other side of the ocean. And the Oriental cars cost more too.

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Dennis (VA)

02-16-2007 09:23:44




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 Re: GM to buy Chrysler???????? in reply to Midwest redneck, 02-15-2007 17:16:55  
Must be a lot of slant eyes in Kentucky, Texas,(Toyota), Ohio (Honda), Alabama (Hyundi), Tennessee (Nissian), etc. etc.



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Midwest redneck

02-16-2007 14:02:09




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 Re: GM to buy Chrysler???????? in reply to Dennis (VA), 02-16-2007 09:23:44  
The auto suppliers are in JAPAN, the Engineering is done in JAPAN, the Profits go to JAPAN....Get it. Only a percentage of the actual car revenue actually goes the USA and the USA worker. I do believe that assembling the cars and trucks here is better then shipping them over from Japan.



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IH2444

02-15-2007 12:35:03




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 Re: GM to buy Chrysler???????? in reply to thejdman01, 02-15-2007 11:51:05  
Toyota is doing so good they are trying to keep a low profile so their prosperity does not backlash on them with public sentiment.
Plus they are already in several deals with GM.
Some of the GM models have toyota drive trains in them.



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Davis In SC

02-15-2007 20:16:04




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 Re: GM to buy Chrysler???????? in reply to IH2444, 02-15-2007 12:35:03  
After the Michael Waltrip fiasco.. I bet Toyota wishes they had kept an even lower profile... As in not getting into Nascar..



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Easy1

02-15-2007 11:18:21




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
Gm is closing a dozen or so factories of its own. Why buy Chrysler's?



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IH2444

02-15-2007 10:45:13




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
I guess they have to repeat the same mistakes over and over, since the execs always get golden parachutes.



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e

02-15-2007 10:25:54




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 Re: GM to buy Chrysler???????? in reply to e, 02-15-2007 10:24:50  
Opps....here's the link.....



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