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Ford Not Shopping for Chrysler

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Fox News' Neil Cavuto just suggested that Ford and Chrysler are talking about a possible merger.

Until now, pundits have posited that GM and Chrysler would re-engage in merger talks with any bailout plan offered by the government. This morning, President Bush gave the OK for massive loans to GM and Chrysler--and not Ford--to punt the issue into next year and into the Obama Administration.

Could a Ford-Chrysler marriage work? Our plan to fix Detroit included splitting up Chrysler between GM and Ford, which still may happen. A Ford acquisition of Chrysler would give Dearborn the market share to rival GM as America's largest automaker--and give Ford the Jeep brand (replacing the Land Rover marque), the Chrysler minivans, and the Dodge Viper and Ram.

Do you think this would make any sense? Tell us in a comment below.

UPDATE: Ford says there's "absolutely no truth at all" to the report. We'll update as we learn more.

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Comments (5)
  1. Makes sense if Ford wanted the financing, but right now they say they don't. By accepting these loans, Ford would most likely piss off their existing creditors, because this new fed debt would climb the ladder above outstanding debt (in the event of bankruptcy, which is still not out of the question). The other problem with Ford adding Chrysler is the dealership network. Ford has too many dealers now, needs to axe at least half of them. Would half the Chrysler dealers close, too? From a model lineup standpoint, this makes sense but I don't see it happening. Wouldn't it be smarter for Chrylser to buy Tesla or some other company with electric/hybrid technology to grease the skids with the Dems next year? Maybe that's a bit cynical, but there is no way Nancy would let that new company fail over the next four years--enough time for the economy to recover, oil to rise and demand for hybrids to bounce back. Cerberus is in so deep now, the smart ploy would be to just keep digging. They're a hedge fund for godsake, masters of the universe and all that--show some cajones.
     
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  2. Honestly, why would anyone want Chrysler at this point? Reviews say the Ram is a great truck, but isn't the F150 great too? Minivans and Monster Trucks will likely always be around, but they'll likely never be top sellers again. I doubt even Avis or Hertz wants an Avenger or Sebring at this point.
     
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  3. @R2dad is right. Ford is proceeding along the path that Mulally laid out two years ago, and picking up bits of Chrysler would represent a massive deviation from that plan.
    Mulally has shown himself to be the smartest CEO among the Detroit Two and a Half, and it seems like it would be wildly out of character for him to do this.
    And Ford has said repeatedly it's not about market share, it's about profit at whatever share they end up at. They will likely have to gain share the old-fashioned way: Claw for it a tenth of a point at a time. Just like Toyota and Honda did.
    Jeep may be the one exception to this, but it'd be so much easier to buy the brand (and cherry-pick dealers) out of bankruptcy or from any company that Cerberus may pay to make it all go away.
    A friend points out that Jeep is the parasite that has managed to kill four successive hosts while surviving itself: Willys, Kaiser, AMC, and now Chrysler ...
     
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  4. Get over it, the only chance of saving Chrysler is in foeign hands at that looks less and elss likely. Why the hell would Ford want Chrysler? Other than Jeep it offers nothing of value for Ford. It doesn't need Ram as it has the F serie, minvans aren't important sector and well it is selling everything ti can to raise money so why would it take on debt laden Chrysler asets? Stupid idea.
    Chrysel is gone, like so many US brands before it, live with it. jeep will live on though reality is it has been a poisoned challace for all those that have bought it. mullaly seems to have an ide awhat he is doing, leave him alone to do it and stop these dumb ideas. Wagoner is still dumb enough to buy them but sicne they no longer have the cash he was seeking even he can see the writing on the wall.
    Jeep may either be sold or go on its own. there is no value in any of the other assets. Cerberus might sell off everything but Jeep and Ram, tehy have some synergies. everything else is worthless.
    John may even add even add Daimler Benz to the problems companies who buy into the Jeep to their own downfall, at elast it had see the writing on the wall and got out.
     
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  5. I think it would be a great merger.
    FoMoCo would finally have a mini van that sells. They are not HOT but they still sell well.
    Merge the Ram and F150 onto a single truck platform but keep them looking different. Maybe they will be able to bring the Dodge fans into their fold. The Dakota might help with the F100 idea that keeps coming up.

    Ford would have a ready platform to build a new Crown Vic on or just leave it up to the Charger and kill the Crown Vic off once and for all. Maybe we could even see the Ford Ford Interceptor built off of the Charger/300 platform.
     
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