The 7 Worst Ways to Rescue Detroit

Disposition of Chrysler thought

By the description of Chrysler's woes and future, along with Ford and GM, i think the best plan at this time would be to Provide both GM and Ford with loans. GM 15 billion, and Ford 10 billion and give Ford a Tax break to buy Chrysler from Cerberus and remove it from a private equity firm that has no experience running a car company of that size.

The merger would add the smallest of the 3 to the 2nd largest, and provide new product lines to Ford, such as Jeep, and the #1 minivan and some of its specialty lines to keep the brand going and revitalize it. The loan would help Ford pull it through, and provide capital for restructuring and absorbing while cutting real estate, liquidating some assets and combining or eliminating some dealerships.

It would also provide more even competition to GM.

If GM were to merge with Chrysler, it would only fit with their business model (General Motors) But GM would have a hard time bringing Chrysler onboard and has enough of its own troubles with duplicate product lines competing against each other without adding some more.

It also has the Hummer line which competes with Jeep to an extent.

In my opinion, a move like that would split some market share to the two bigger companies with ending some product lines and drop costs for Ford as it combines operations, while GM continues with its plans separately.

Steve of MI @ Dec 02, 2008 13:01:14 PM