GM in talks to purchase Chrysler AG
If this goes down, GM will increase its hold on the market substantially, possibly enough to hold off Toyota's rapid rise. However, a lot of questions come to mind. First, is GM considering the purchase JUST to stay larger than Toyota? If so, it would probably only be temporary since most Chrysler vehicles would have to be quickly redesigned as a lot of them use various MB parts (the 300, for example, uses an E-Class suspension). I think part of Chrysler's success in the last decade has been due to the prestige of being part of the Daimler-Benz company. Second, if GM is as cash strapped as they claim, can they really afford such a large purchase? Chrysler may have been cheap in the 90's, but I guarantee that Daimler-Benz won't let it go for cheap with all of the recent success as well as their own investment in the company. And this won't be a merger like it was back then, it would have to be an outright purchase. Third, back to the market share thing, Toyota is comprised of only two divisions, Toyota/Lexus, whereas GM is umpteen divisions and vehicles and is STILL barely able to stay ahead of Toyota. I also higly doubt that so many clone vehicles could be sold side by side in dealer lots, such as the GMC and Dodge Ram pickups. So GM would be eliminating some models, which would decrease their share in the long run. Does anybody see any real benefit to this proposed deal?