GM-Chrysler not a Good Combination

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