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Article #9: GM-Chrysler not a Good Combination

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






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