Rumors of GM Buying Chrysler Are Just That
February 15, 2007

Rumors are running rampant since a German Web site reported General Motors is in talks to buy Chrysler, now that DaimlerChrysler has indicated its American arm is for sale.

But they are just that - rumors.

A wholesale purchase by GM of Chrysler makes little sense. GM is just getting on its feet again and does not need the distraction of taking over and digesting another company. GM already is criticized for having too many brands and too many, often-overlapping nameplates. GM hardly needs three more brands and 32 more nameplates.

Although, it is interesting to note that a GM with Chrysler would cement its spot as No. 1 in the world over Toyota. Hopefully, GM is focused less on the sales title than it is on its success.

Are GM and Chrysler talking? Probably. Hopefully. Some GM-Chrysler alliances in specific areas, such as advanced propulsion technologies, are possible. Chrysler, through DaimlerChrysler, already has an alliance with GM – it also includes BMW – to develop hybrid vehicles. GM has a transmission project with Ford as well. More collaboration of this sort on technical issues is likely amongst a variety of partners.

Posted by Michelle Krebs at 5:39 AM under Companies , Rumors | Comments (0) | digg this | Seed Newsvine