GM and Chrysler

[Andrew Schreiber]

After listening to the news this last couple of days and hearing about a potential merger between GM and Chrysler I searched around here wondering if anyone had opinions or ideas on what this could mean for the FIRST community. As well as the economy in general.

Here is a link to the Business Week article (http://www.businessweek.com/bwdaily/...pStories_ssi_5)

Personally I feel this could be beneficial to the economy and FIRST. If these companies feel that they need to merge and cut costs to stay around I would much rather have 1 company stand then have 2 fail. That being said, I think this will be devastating to the FRC community, especially those of us in the Michigan area sponsored by these companies. There have been talks of closing the Auburn Hills facility, this could be another blow to the already pained Michigan FRC community. (Obviously, I realize it will be a blow everywhere but I am from Michigan and don't feel like speaking on that which I don't know)

Also, if this is in the wrong area or gets too heated could a moderator please move and/or lock this thread? I know there are probably some very heated opinions about this and would like to keep it focused on how the FRC community will be affected and how we can make the best out of this.

[Zflash]

It sounds as if reduced pricing for MI teams couldn't have come at a better time. As far as the econmy guessing the outcome of that would be like trying to hit a moving instead of stationary target in '06. I wish the best of luck for all teams loosing a sponsor this year and remeber that what you are doing is always worth fighting for.

[DarkFlame145]

sounds like a good idea, but i thought i would see a Ford and Chrysler LLC merger before GM and Chrysler LLC

[Tom Line]

The reason for GM + Chrysler is twofold. First, GM still retains something like 49% of GMAC, and Cerberus has the other 51%. This well could be a swap - GM gives up the rest of GMAC and Cerberus hands over Chrysler + a good chuck of cash to keep GM afloat (something like 11 bil).

People don't think about it much, but GM is actually in serious trouble when it comes to paying the bills - they're using too much cash to run operations and not enough is coming back in from sales.

If this happens it's going to be incredibly bad for Michigan. GM will likely keep the product that fill holes in their line-up: namely Jeep and the minivan business. I'd guess the rest, including factories etc. get sold off to foriegn companies like Tata in India just for the Chrysler name (similar to the Land Rover and Jag sale).

The Chrysler Foundation (note - NOT Chrysler) is one of our sponsors as well. They already cut funding this year. With Ford being one of our other major sponsor, we could be in trouble as well.

[DarkFlame145]

Ford has a promising lineup in 2010 or 2011. With the Euro Focus and Euro Fiesta, as well as some of their other Euro cars. As long as Ford keeps their word that there will be NO difference (other then where the steering is) between the Euro ones and the American ones. Also with the 2010 Mustang maybe having a SVO (Inline 4 with a turbocharger) trim package.

But anyways I hope this works well for both GM and Chrysler LLC.

[Andrew Schreiber]

Tom is correct, Chrysler is sitting on 11 billion in cash and GM is burning through cash at (according to several news sources) about 1 billion a month. A while back a GM+Ford Merger was rumored for this same reason. But from the sounds of it this isn't so much a merger as it is a trade. Cerberus takes GMAC and GM gets Chrysler's brands and the cash it needs to run for another year. Without some sort of cash infusion GM will most likely be out of cash and be unable to pay payroll. I hope this can go through because nothing would signal the utter collapse of America like seeing GM die.

And Erich, hitting a moving target would of been the same as hitting a target while moving, and we did that ^_^.

EDIT::
Tom, I recall hearing that the reason Ford has money in the bank is because of selling off brands like you think GM would do. Is my mind just making stuff up?

[Tom Line]

Originally Posted by DarkFlame145

Ford has a promising lineup in 2010 or 2011. With the Euro Focus and Euro Fiesta, as well as some of their other Euro cars. As long as Ford keeps their word that there will be NO difference (other then where the steering is) between the Euro ones and the American ones. Also with the 2010 Mustang maybe having a SVO (Inline 4 with a turbocharger) trim package.

But anyways I hope this works well for both GM and Chrysler LLC.

I'll be the first to agree with you - I'm the Ford mentor for 1718 .

Wait till you see the 2010 Shelby. Mmmmmm.

Damien - that's part of it. We sold Jaguar and Land Rover to Tata motors of India. We also, essentially, mortgaged every asset in the company to secure loans (including the Ford "Blue Oval").

[Andrew Schreiber]

Originally Posted by Tom Line

that's part of it. We sold Jaguar and Land Rover to Tata motors of India. We also, essentially, mortgaged every asset in the company to secure loans (including the Ford "Blue Oval").

Jeez, didn't know that. Also didnt know you could mortgage your logo.

[Zflash]

[quote=Damien1247;771298]
And Erich, hitting a moving target would of been the same as hitting a target while moving, and we did that ^_^.
QUOTE]

We also hit a target while moving however the added complexity of us moving as well as the target moving was not there.

[GaryVoshol]

30,000 or 40,000 people also stand to lose their jobs, including a significant number of engineers. Teams won't be losing only money, but also mentors.

[Zflash]

Originally Posted by GaryVoshol

30,000 or 40,000 people also stand to lose their jobs, including a significant number of engineers. Teams won't be losing only money, but also mentors.

Money almost always has a way of being found when worked on it hard enough. However good Mentors and Engineers willing to doante their time is not always easy to come by. I hope the best for MI teams as well as anyother teams in the community in the same situation.

[spazdemon548]

The future does seem to be very scary for Michigan. All the more reason for Americans to buy American.

[DarkFlame145]

The next couple years might be hard for FIRST, but once the US economy gets back on it's feet and the American Auto Industry starts making and selling cars people wanna buy I'm sure things will get better. We have to hold together, not as just a team, not as US FIRST, but as a Country and as it's proud people. The world is feeling the Economical pinch.

[Michael Hill]

I can't even believe the two are thinking about merging. On one hand, you have GM, a failing company, then on the other, Chrysler, another failing company.

Last time I checked, when 2 failing companies merge, they just end up forming 1 bigger failure of a company.

The talks of merging have to stop now.

[DarkFlame145]

Originally Posted by Michael Hill

I can't even believe the two are thinking about merging. On one hand, you have GM, a failing company, then on the other, Chrysler, another failing company.

Last time I checked, when 2 failing companies merge, they just end up forming 1 bigger failure of a company.

The talks of merging have to stop now.

In the auto world, buying and or selling brands is a good way to save a company. I mean when AMC (American Motor Company) went under Jeep (owned by AMC) was bought by Chrysler (maybe it was GM bought it, then sold it to Chrysler). Which for a while was very good for Chrysler cause for a while they sold more Jeeps then almost any other car they owned. Now buy companies can also be bad like the 90's then Ford bought Jag, Land Rover, and Volvo; Jag and Land Rover where spending more money then they where making. Which caused Ford to sell them for a fraction of what they bought them for. Sometimes the gamble pays off, other times it doesn't. I mean the 2 companies wont become one, they are just merging stocks (from what I understand). But if it doesn't work out I think Chrysler is done for, GM might be around, but badly hurt.