Can GM make good with Chrysler?
Bernie Snyder
Feb. 17, 2007

Some believe GM’s move on acquiring Chrysler is just over ambitious. But it may be the best chance for GM. One thing GM does not want is for Chrysler to go into hands of Toyota or other Japanese or Chinese entities.

The question is can GM really convert the money losing Chrysler unit into profitability? GM has its own problem. Chrysler is in worse shape than GM for the same old reason – the legacy costs.

The answer is actually positive from many analysts. GM and Chrysler can eliminate many jobs, negotiate with UAW very well and also capture the heavy truck market in US.

No doubt it is a sort of gamble. But there is no gain unless some one takes some risk. GM’s Rick Wagoner will achieve quite a few things from this acquisition. First it will depress Toyota’s ambition to become world’s largest Car manufacturer. Second it will allow solid negotiations with the Unions. Third, the joint company can cut enormous amount of jobs and overhead costs. And fourth, it be able to combine technologies to become real dominant in Asia.

Can GM make good with Chrysler?
Bernie Snyder
Some believe GM’s move on acquiring Chrysler is just over ambitious. But it may be the best chance for GM. One thing GM does not want is for Chrysler to go into hands of Toyota or other Japanese or Chinese entities.
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