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Paul Pless
06-10-2015, 08:27 AM
Pushing for merger between GM and ChryslerFiat.

Mary Barra replies, "no thanks"

Norman Bernstein
06-10-2015, 08:34 AM
I heard this on the radio yesterday.... supposedly, Marchionne's argument was that since the costs of R&D are skyrocketing, a merger would make sense. GM, on the other hand, is shipping over a million units a year and doesn't need the help, according to the report.

I'm a little surprised, only because it seemed as if Chrysler's newer offerings were considered to be pretty good cars. I rode in my doctor's Chrysler 300, and was impressed.

Dan McCosh
06-10-2015, 09:09 AM
I heard this on the radio yesterday.... supposedly, Marchionne's argument was that since the costs of R&D are skyrocketing, a merger would make sense. GM, on the other hand, is shipping over a million units a year and doesn't need the help, according to the report.

I'm a little surprised, only because it seemed as if Chrysler's newer offerings were considered to be pretty good cars. I rode in my doctor's Chrysler 300, and was impressed. Of course, the 300 was designed by Daimler-Benz, not Fiat.

John of Phoenix
06-10-2015, 09:17 AM
This may be the final throes of both Chrysler (talk about a zombie) and Fiat.

Dan McCosh
06-10-2015, 01:09 PM
Marchionne has been making this pitch for more than a decade. Until now, it was mainly aimed at the Europeans, and pitched as a solution to the overcapacity in that market. Combining the two companies in the U.S. with historically the worst image/quality problems doesn't seem to make a lot of sense.

Dan McCosh
06-10-2015, 01:11 PM
I heard this on the radio yesterday.... supposedly, Marchionne's argument was that since the costs of R&D are skyrocketing, a merger would make sense. GM, on the other hand, is shipping over a million units a year and doesn't need the help, according to the report.

I'm a little surprised, only because it seemed as if Chrysler's newer offerings were considered to be pretty good cars. I rode in my doctor's Chrysler 300, and was impressed. I'd agree that GM's sales of 10 million a year is "over" a million units a year.

Figment
06-10-2015, 01:20 PM
Why are the costs of r&d skyrocketing?

Usually when I hear something like that it spells the beginning of the end for a big company, because it indicates that beancounters are overruling the managers and makers.

Dan McCosh
06-10-2015, 01:29 PM
Why are the costs of r&d skyrocketing?

Usually when I hear something like that it spells the beginning of the end for a big company, because it indicates that beancounters are overruling the managers and makers. R&D isn't "skyrocketing", it's always been quite high. Rough cost of developing a new vehicle ranges between $1 billion to $3 billion or so, with maybe a third going into engineering with the remainder hard capital investment including tooling and capacity. The problem is that sales of individual models keeps shrinking, due to the many manufacturing producing similar models. All think they can spread the cost of basic development globally, by adapting the basic car platform to sell in multiple markets. Since all are doing the same thing, the theory doesn't work for everybody. When you divide fixed costs like R&D by lower volumes, the unit cost goes up. Might note that GM and Ford recently announced roughly $5 billion worth of engineering expansion in the Detroit area alone.

John Meachen
06-10-2015, 04:51 PM
I seem to remember that several years ago,prior to the Fiat takeover of Chrysler,GM were keen to get hold of Fiat's knowledge of building small cars.There was an agreement for GM to buy a large chunk of Fiat and it was about the only hope Fiat had of surviving.Just before the deal would have been triggered GM decided they could get along quite nicely on their own and paid a fairly large amount of money to be released from their obligation.

I read the autoextremist.com website each week and see there a lot of bile directed at Sergio Marchionne .He does seem to be prospering when the company isn't and he needs to demonstrate some progress for FCA.On a global basis,how are GM doing?For all their significance in Detroit,could they be eclipsed by one of the Chinese auto makers that few of us have heard of yet?Maybe both GM and FCA will wind up as subsidiaries of a Chinese auto maker.

pila
06-10-2015, 05:52 PM
Getting hooked up with anything with Fiat in the name is a bad idea....

Lew Barrett
06-10-2015, 06:41 PM
Had my first ride in a 500 the other day. I like the idea, but didn't much care for the car. All but the Abarths, especially the Pops, have been selling at a steep discount here.