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The "Big Three" to become Two?

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  • 12-10-2008 4:34pm
    #1
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭


    US auto giants GM and Chrysler are apparently in merger talks, the domestic market has shrunk 13% this year and both have outdated model ranges skewed towards large vehicles. GM are already closing a bunch of small truck and car plants, its loosing a billion $ a month.

    Damiler Benz must be breathing a sigh of relief that they got out of Chrysler when they did.

    GM Europe sales are down 1.9%.

    Mike


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    #2
    leninbenjamin
    Closed Accounts Posts: 8,983 ✭✭✭leninbenjamin


    meh... the American car industry is f*cked until they can learn how to make good cars again. this will make no difference.


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    #3
    SoCal90046
    Closed Accounts Posts: 192 ✭✭SoCal90046


    mike65 wrote: »
    US auto giants GM and Chrysler are apparently in merger talks, the domestic market has shrunk 13% this year and both have outdated model ranges skewed towards large vehicles. GM are already closing a bunch of small truck and car plants, its loosing a billion $ a month.

    Damiler Benz must be breathing a sigh of relief that they got out of Chrysler when they did.

    GM Europe sales are down 1.9%.

    Mike

    As the former CEO of Continental Airlines, Gordon Bethune, used to like to say about mergers in his industry, this proposal is like two drunks propping one another up at the bar.

    I don't see that there will be any benefit to this proposed merger. Even if it happens, the big issue that both companies face is the product they product: it's not competitive.

    US automakers have improved in recent surveys by JD Power and Associates, but they are still lagging. I put much more faith in the survey of readers of a consumer magazine here in the US called Consumer Reports. Two years ago, for the first time ever, no US produced car was in the recommended list. GM should really do the decent thing and enter Chapter 11.


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