Freep: GM Says It Can Handle Chrysler Merger
There’s a reason the headline above attributes this “story” to The Detroit Free Press. Let me put it this way: “people familiar with the situation,” “one of these people added,” “other observers,” “one person told the Free Press,” “a person briefed on the talks,” “several analysts have speculated,” and “a person briefed on the strategy.” Seven references to unnamed sources? That’s gotta be some kind of record– and not for reputable journalism. OK, be that as it may, The Freep is asking us to believe that there’s method to this banker-lead executive hysteria. “If a merger is consummated, Chrysler’s brands would become just like Chevrolet, Pontiac and Buick, people familiar with the situation tell the Free Press.” And that’s a good thing? “Conflicting brands could be dealt with in a few years after this industry turmoil has passed, one of these people added.” Later. Got it. “Another concern raised by analysts and other observers regards the addition of 3,500 Chrysler dealers into GM’s already over-dealered network. One person told the Free Press that those ‘excess dealers’ would cost GM nothing in the short-term and that some — if not many — will fail on their own anyway.” Later. Got it. Of course, Ace scribe Tim Higgins has more conjecture information on GM’s thinking…
“There is no certainty yet that any deal will come to pass,” Higgins writes in a CYA aside. “Smaller ventures or deals with other automakers could be pursued.” Huh? “But a straight-out combination of operations is the assumed model for GM’s team, led by President Fritz Henderson and Ray Young, his chief financial officer.” Assumed by…? And here’s the kicker: “A person briefed on the talks said Cerberus wants to keep a stake in a combined automaker to ensure its GMAC lending business is tied to an automaker when the auto industry rebounds down the road.” See? Now that’s funny.
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Hugh I have no trouble believing they exaggerated somewhat, but I also figure they were factoring in the cost of the research and engineering. I am just disappointed at how they abandoned their own product (again).
- TheEndlessEnigma Mustang, MX-5
- Probert I have used both level one and level 2 charging at my house. I use this for local needs. I have a fairly regular 350 mile round trip. I charge after about 125 miles one way, at a level 3 at a KIA dealer. I could do it in a straight shot, but this leaves me plenty of reserve if I need it in the city.I charge at the same place on the way out, adding about 40%, and I'm home free.A number of chargers have opened since I got the Niro 2 years ago, so I have a fair amount of flexibility on this route. I have used EA chargers on the route, and also a handy, and friendly Harley dealer charger.
- Dan65708323 I think Ford it going to go under. They can't lose 3 billion ever year for years. All their EV's are on stop sales. Good luck Ford.
- Kcflyer LC 500
What about this whole merger rumor is NOT a pump and dump for their respective stock prices? The suits/market/"insiders" are trying/hoping for one last spike in stock price in order to cut and run. That's the only reason I can think of for anyone to perpetuate the story.
FYI, that image is originally from a July 2000 cover of The Economist: http://www.economist.com/printedition/cover_index.cfm?year=2000&quarter=3&edition=US