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GM-Chrysler not a Good Combination

The possible merging of General Motors andhave are minivans. It is also interesting to
Chrysler is seen by most analysts as anote that the Chrysler Town & Country and the
desperate move to survive. However, it isDodge Caravan are the nation's best-selling
still unclear how such merging would resultminivans while GM is in the process of giving
to anything positive for either company orup on the minivan market completely. And if
for  the  US  auto  industry  as  a  whole.ever the merging really pushed through then
General Motors will be the new proud owner of
The only beneficiaries of the possibleChrysler's  minivan  fleet.
merging are the DaimlerChrysler's
shareholders who are hoping to finally ditchBut most analysts think that Chrysler's
the  Chrysler  Group.minivans are not enough of a reason for GM to
buy a losing company especially when there is
Buying the Chrysler Group would put Generalthat risks of an overlapping portfolio of
Motors, world's largest automaker and makerproducts. In the auto industry it is not easy
of popular GM Buick parts in a bad positionto dispense overlapping products. Unlike the
due to the basic fact that Chrysler is anmerging of banks in which half of the
embodiment of everything that GM is trying tobranches are eliminated, including the back
avoid which is to become overly reliant onoffices and in the process keep all the
light trucks resulting to excessivecustomers.
production  and  losses  in  North  America.
Not to belittle the management capability of
John Casesa, an industry consultant andGeneral Motors but it is no secret that the
former Wall Street analyst said, "It wouldautomaker is finding it hard to manage all of
increase exponentially the challenge that GMits eight brands and adding three more would
management faces in executing itsbecome an impossible mission even for the
turnaround."world's numero uno. Imagine managing Jeep and
Hummer at the same time would demand for a
Until now General Motors and DaimlerChryslerjuggler's ability. And if you think that's
still refuse to give any official statementdifficult just wait till GM has to market
on the speculated merging. According toDodge Ram pickups and its very own Chevy
Chrysler spokesman Michael Aberlich, "We'reSilverados which are considered to be the
not going to comment on the rumor of thelifeblood of both Chrysler and GM. The bottom
day."line here is that GM and Chrysler has the
same products which will compete with each
Most people are questioning is Chryslerother instead of competing with those of
really worth it? In terms of products theother automakers.
only thing that Chrysler has that GM doesn't



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