GM Board of Directors on Chrysler Hook-Up: Are You Nuts?

John Horner
by John Horner
gm board of directors on chrysler hook up are you nuts

According to [yet more] unnamed sources for The Wall Street Journal, General Motors’ Board of Bystanders put the kibosh on a Chrysler merger deal. “Despite huge losses over the past four years, a plunge in GM’s stock price and growing worries about whether the auto maker has enough cash to turn itself around, GM’s board has continued to support Chairman and Chief Executive Rick Wagoner.” Nice set-up. “But the board’s cautious reaction to the proposed merger suggests it may assert itself more than in the past if Mr. Wagoner and his team try to move ahead with a Chrysler deal.” You would think that in times like this the board would be asserting its authority in, I dunno, setting the strategic direction for the company, rather than, say, simply reacting to the latest thoughts of the CEO whose wiped tens of billions off the company’s worth and plunged it into a terminal nosedive. But then again, reacting instead of leading is the GM way from top to bottom. Anyway, as that’s that, let’s hear what AutoNation’s CEO Michael “No Not That One” Jackson has to say about all this meshugas. Jump!

When it comes to the 2.8’s overall position in the marketplace, Michael Jackson said GM, Ford and Chrysler are “not going to dominate in the U.S. and elsewhere in the world as they have in the past, and they’ll have to find a piece of the pie where they can be successful and profitable.” In other words, Detroit’s former lions are all shrinking and the game of musical chairs continues. But as you made the jump, and probably already knew that, how about this, buried at the bottom. “In an effort to boost Ford’s liquidity, its board has approved the sale of at least part of Ford’s controlling stake in Mazda Motor Co., according to several people briefed on the matter [unnamed sources rule!]. “Selling some of it 33.4 per cent stake in Mazda is viewed as an attractive option for Ford because unlike some assets, the stake wasn’t used as collateral when the auto maker secured $US24 billion in financing two years ago.” Huh.

Join the conversation
2 of 24 comments
  • Denial Denial on Oct 13, 2008

    Is it not possible that GM would want to merge with Chrysler in order to create the single biggest dysfunctional, debt-ridden entity in the history of human civilization, thereby scraping open a hole in the fabric of space/time and in so doing releasing, into this dimension, a species of interstellar life forms who, by no accident, are able to survive only within, say, a G5 or this lovely Sebring that, you know, another couple were just looking at today...I think they've gone to the bank in fact...

  • Mgme Mgme on Oct 28, 2008

    When Gm stock hit 5 bucks a share I bought 1000 shares. This was less then 2 weeks ago. My thought was it was a good buy. Now this borrowing money to buy a loosing Chrysler has me concerned. Lou Dobbs doesn't like it either. He states the bail out merger is like paying GM to cut Jobs.

  • Kwik_Shift Manuals are great theft deterrents though. 😉Sad when they're disappearing from many makes.
  • Arthur Dailey Confession here. 2 of the previous generation Rogues in our family over the past 5 years. Saw some cost cutting between the 1st and the 2nd one. On the 'new' one there are no cubbies on the back of the front seats, the ignition is not lit, and there is a marked difference in the front seats. The first Rogue has the most comfortable seats I have experienced since the heyday of the PLCs. Despite sciatica could drive that Rogue for hours with no issues. The seats on the 2nd Rogue create discomfort after 30 minutes. And everyone in the family has noticed this.The first Rogue drove seamlessly. Quiet and comfortable on the highway. On both we have averaged just over 29 mpg. The 2nd Rogue needs to be warmed up and driven slowly if left out overnight in minus 30 (f) or -0 (c) weather, otherwise the engine just revs and the speed does not seem to increase. The dealer has been asked to look at this multiple times but each time they claim that there is no issue. It also has the worst Bluetooth interface I have experienced. Otherwise, based on size, cost, the Rogues were chosen over Toyota/Honda. Both were/are leased so not concerned about long term values/reliability. And the 'new' Rogue came standard with heated seats and blind spot warning, which the Toyota/Honda did not without going up a couple of packages.However we should have bought out the first Rogue when the lease ended. During the height of the pandemic, it could have easily been flipped for close to double the buyout cost.
  • AKHusky L2 charger at home. My wife’s workplace has a couple of chargers and she is able to use one about half the time. Our town also has a number of free chargers and I use those occasionally if I’m going to be parked in that vicinity for at least an hour anyway.
  • Jkross22 That's a great looking shifter. Reminds me of the old school late 70s BMW manual - BTW TTAC, that would be a cool article to run - Best looking shifters in the last 30 years. My vote:Audi gated shifter from the R8. Should've offered that on every RS model and let people special order.
  • Ajla Maybe they should not have released several special edition Broncos when they couldn't even get regular trim orders out within a year?I'm not sure who is in charge of Ford's production but they deserve to be very fired.