02Vortech

iTrader: (4)

well i came across this today doing research a stock project @ my college classes.

aparently GM is in talks with daimler chrysler to add them to there line up.

here is what i found
its on valueline.com and you have to be a member to veiw it and im sure many of you arent members on there so here you go.



General Motors’ next step may be a
sizable, yet risky, venture.
The American
car maker continues to seek ways to
keep ahead of the competition, namely a
surging Toyota. In addition to further
market-share losses, GM will likely slip to
number two behind Toyota as the world’s
largest auto maker this year. That is, unless
the Detroit firm finds a way to reverse
its bottom-line losses. One such option
may lie across town at DaimlerChrysler’s
struggling Chrysler segment. Talks between
the 80-year rivals have, in fact,
been under way for some time now, and
GM appears to be seriously considering
adding the Chrysler group to its muchmaligned
vehicle lineup. Such an alliance
would not only add substantial scale to
GM’s platform (Chrysler generated over
$60 billion in revenues in 2006), but it
would provide Detroit with significant leverage
during UAW negotiations. However,
the risks of such an integration, between
two companies amid crucial turnaround
attempts, are weighty. For now, we must
wait and see where the talks lead before
making any adjustments to our estimates.


The company may further delay its
recent filings.
GM is currently reviewing
a pair of accounting issues and may be
forced to restate financials back to 2002. It
may file its 2006 results by the March 1st
deadline, though an extension through
March 16th is a more likely scenario. Our
top- and bottom-line estimates will not reflect
any restatements until we can better
assess the accounting review.


Investors are best suited to taking a
wait-and-see approach here for now.
These timely shares have shown
resilience, climbing 10% since our December
report. Still, the road remains bumpy
for GM in 2007. Competition continues to
intensify, and we are wondering if the
company takes on more than it can handle
with a possible Chrysler deal. We believe
the ingredients are here for a sustainable
turnaround. At its current price, however,
the stock offers below-average long-term
appreciation potential.
Jason A. Smith March 2, 2007

Shackleford

iTrader: (12)

GM will be number one for awhile.

Bo White

iTrader: (59)

Well the topic name for the thread is misleading sorta. GM is talking about buying Chrysler and Mercedes Benz has Chrysler up for sale both unofficially. GM is not buying Daimler Chrysler and Daimler Chrysler is not for sale persay. Mercedes bought Chrysler mainly to get Jeep for the way I was explained they will not be sold, just the Chrysler/Dodge segment. GM can buy Chrysler probably without a problem since they used to have so many companies in it not too long ago. I work for Mercedes and although I posted up this doesnt mean that whats in my post if fact Im just posting up about what Ive heard in the company.

OctaneZ28

iTrader: (6)

DaimlerChrysler as a whole isn't for sale (as mentioned in the above post), but they'd kinda like to cut Chrysler loose.

GM has explored making an offer to buy Chrysler, but nothing has come of it.

WECIV

Buy Chrysler and cut Buick

W

Hydramatic

Are you serious? Buick makes FAR nicer cars than Chrysler, quality-wise. That end of the market is just too crowded right now. GM has Saturn, Buick, and upper level Pontiacs already in that slot, not to mention that they used to have Oldsmobile up there too!

It'd be cool if GM bought them and made Chrysler do nothing but upscale, large cars and slotted them into the Cadillac range. Then bump Cadillac up in luxury and niceness and make them the standard of the world again. We need a Cadillac with a V12 and a LOOOONG hood....

I'd make Dodge focus on nothing but small, sporty and economical cars, make them the Scion/Honda fighter like Saturn used to be.

Axe Hummer and replace with Jeep if they can get ahold of them. No brainer there.

I'd bump Buick down a notch to where Olds used to be, and bring Saturn a notch up to where Buick is right now. Give Buick some hot looking, hot driving cars and the value will sell itself....I wanna see a commercial with Tiger Woods in a reborn Buick Wildcat(G8) tearing up a putting green with doughnuts.

Chevrolet needs to stay put, but needs to focus a bit more on it's intermediates and full-sizer cars and less on it's small cars and SUV's. Face it, we remember Chevies' cars more than anything else(Camaro, Chevelle, Malibu, Impala, Bel Air....).

Last, but not least, if GM bought Chrysler Group, they NEED to bring Plymouth back from the dead. Plymouth can be the economy car/basic transportation/minivan/rental car division, that, although not flashy, would be a substantial cash cow. GM wouldn't have to worry about their upper-level cars names being tarnished by being fleet vehicles if they sold Plymouths solely as VALUE driven cars and vans. Nothing wrong with guaranteed income from rental-car companies if the vehicles you sell for that purpose were made to be rentals in the first place. Ever since Isuzu and Daewoo bit the dust, that segment has been noticeably bare....rant over...

ULTIMATEORANGESS

iTrader: (4)

last i heard GM backed away from buying chrysler.


too bad. if they were in better shape financially i think it wouldve been a great thing.

Hydramatic

That's what I heard too, but I can always hope, right? I don't want to see some shitty Chinese company buy Mopar away from us....

Switchblade

Problem with GM is that they have their own problems right now. It doesn't make sense to buy DCX as they are also going through a major restructuring, thus GM will have more problems to deal with.

It appears there are 3 parties at the table for DCX

1) The Chinese - want DCX in order to use their network to ship their cars here to sell.
2) Magna - want to be in the car building business and have their own company.
3) Kirk Keorkian - He tried to buy GM, but it went south. He tried to buy Chrysler before but failed. He really wants to buy DCX - will probably break it up and sell accordingly.

Shackleford

iTrader: (12)

Not DCX.

Hydramatic

+1 they are only selling Chrysler and Dodge from what I understand. Hopefully they will sell Jeep as part of the deal....