http://www.leftlanenews.com/report-g...-chrysler.html

 

Well your only worth what someone is willing to pay. Ouch! I think its obvious that GM didn't want to take on what they see as a large responsibility to the pension and healthcare that Chrysler owes. They made an offer to see how serious Daimler is and if they could steal some market share. I love how GM offered stock but wanted Daimler to buy a good portion of that in return to take "Chrysler" off their hands.

This certainly makes Magna's deal look quite a bit better. Especially when they get all of their partners together.

I wonder if this will be a big lesson for any major automakers thinking of buying another one. Daimler paid $36B only 9 years ago. They will be lucky to get 20% of that back.

 

I can't think of any acquisition that actually made money for the acquiror when they later sold out (then again, they probably wouldn't sell if it was profitable so that kinda skews the numbers).

GM lost money on Fiat, Isuzu, Subaru. BMW lost money on Rover. Ford lost money on Aston. DCX lost money on Mitsubishi. Despite all that, I don't think most of them have learned a lesson and we'll probably continue to see more questionable acquisitions.

 

I don't think Daimler has lost $36B over Chrysler. Didn't Chrysler have something like $20B+ in the bank when Daimler took them over (I mean "merged" with them)? I seem to recall them going on something of a spending spree with all of that money, so now Chrysler is pretty much back to square one if they are sold...

 

Yeah, didn't they raid Chryslers wallet and use it fund the Smart car and other projects?

Seems like they got all they want out of Chrysler and now they're leaving it for dead. No one seems to care much.

 

I think GM made money when they sold Lotus back in the mid 90's.

 

Most business mergers and aquisitions (90%) fail anyway. Seems like they just made an offer to save face for wasting everyones time. If they were serious, they would still be negotiating.

 

Thats what I meant. We heard about the Nissan-GM talks a while back and it just seems like these things never work. But they keep popping up. I'm glad GM made a poor offer because it was never worth it.

 

Assuming a buyer isn't found, what does this mean for Chrysler?

 

I dont understand why Daimler Benz didnt do more to fix Chrysler. They could have made the POS Neon a formidable car...

 

That they go forward with the planned restructuring.

 

I guess its no longer a rumor but a real possibility:

http://www.edmunds.com/insideline/do...ticleId=120311

Bad thing or good thing?