- Caption taken from businessinsider.com

Why a GM Fiat-Chrysler merger would not work?

1y ago

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GM and Fiat-Chrysler might be considering a full blown merger. With news going around that the FCA wants to merge the Chrysler, Dodge, Ram, and Jeep nameplates with GM's lineup. The FCA have brought this discussion to GM's Chief Executive Mary Barra that said to Business Insider, "she had no interest in a combination." This has not stopped the FCA from trying to convince GM's board of directors and investors into supporting the idea of a Fiat-Chrysler Merger. What the FCA seems to not realize that GM would be taking more of a risk by investing in a merger with a company that owes most of it's profit due to the Ferrari lineup, which is not part of the merger deal. If GM did agree to the Chrysler merger I would think it would be an all out buyout. GM does not have any profit in it to merge with a failing company, to make the same mistakes of the original Chrysler merger of 98. When Daimler-Benz chairman Juergen Schrempp and Chrysler’s chairman Bob Eaton agreed to the "merger of equals"; where Chrysler got nothing but scraps, and Daimler-Benz got most of the profit until 2007.

Even if GM did agree to buy Chrysler from Fiat, it would just be added to its list of automotive names, shoved in the back, and forgotten just like Oldsmobile, Saturn, and Pontiac (for some small examples out of a ridiculously long list of past automakers owned by GM). It does not make any sense from the consumers perspective to buy any Chrysler, Dodge, or Ram product if GM added it to its lineup. The only thing that would be worth looking into, would be the possibilities that could be done with the Jeep and Dodge nameplates; but even Jeep and Dodge have become just a brand to remember the good old days of what Mopar used to be.

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Primary Source for this article, qoute, and stock image: Article: Barbaglia, Pamela, Agnieszka Flak, and Joseph White. "GM and Fiat Chrysler Are in a Full-blown Merger Standoff." Business Insider. Business Insider, 17 June 2015. Web. 07 Dec. 2017. <www.businessinsider.com/r-exclusive-gm-and-fca-line-up-financial-advisers-in-merger-stand-off---2015-6>.

Stock Image: N.p., n.d. Web. <static1.businessinsider.com/image/5581e37eeab8eaa829d7989f-1190-625/gm-and-fiat-chrysler-are-in-a-full-blown-merger-standoff.jpg>.

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Secondary Source for this article, information about the Daimler-Chrysler AG merger: Tracy, David. "How DaimlerChrysler Died." Jalopnik. Jalopnik.com, 15 Mar. 2017. Web. 07 Dec. 2017. <jalopnik.com/how-daimlerchrysler-died-1793294432>.

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