General Motors Provides "No Comment" On Chrysler Acquisition Rumors

Illustration for article titled General Motors Provides No Comment On Chrysler Acquisition Rumors

We decided to call one of GM's masters of PR to ask about these rumors of a General Motors / Chrysler combination, but instead of providing a strong denial to the rumors begun early this morning, our sources at the General are doing nothing but claim "no comment." Not a "that's utterly preposterous" or even a "that's absurd" (although we did get a "I wonder where they're getting that?") Nope — nothing other than "no comment." Despite what we've now heard that talks center around requiring the Chrysler Group to find a way to cut employee health care costs out of any potential deal. So does this mean a prolonged negotiation with the UAW on self-health-management? Perhaps. We'll see what happens, but at this point we've got no denial from GM on the rumors and no paper issued. But if it ends up not being GM talking about an acquisition deal, then whom? Chery? Tracinda? What do you think?

Photo By: Bill Pugliano / Getty Images News


All Your Automakers Are Belong To GM: General Motors Looking At Acquiring Chrysler Group? [internal]


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Why, why why?

Chrysler and Ford seem to be fighting for the right to die first.

GM is in better shape than the other two, but already has more brands in NA than it can manage. Those existing brands are also much stronger and in better condition than Chrysler's mess. Further, the brands overlap (Buick/Chrysler, Chevy/Dodge, Hummer/Jeep). Also, GM's international divisions are in better shape.

The only potential this has for GM is to acquire specific products like the T&C/Caravan or Wrangler. This is only a benifit short term however as GM would be responsible for development of the next generation. And, GM's forthcoming Zeta cars threaten to blow the 300/Charger/Magnum into the ditch.

No, the only real possibility for this deal is to bring more of the UAW's labor under GM's unbrella putting GM in more of a position to dictate the union's future in the upcoming contract talks.