Months ago I put Chrysler on deathwatch due to their horrible market position and stale line up. A few weeks back I removed Chrysler from the deathwatch because it seemed as if there was the glimmer of beating Chevy's Volt to market with a NEV/EV of their own. The recent rumors of a GM-Chrysler "merger" have again changed my opinion and I now believe that Chrysler will cease to exist by the end of 2009. There will be no "merger" because there are only four things about Chrysler that GM cares about.
- Superior Minivan product. GM will just rebrand the Chrysler vans and trash their existing crappy vans.
- The Jeep brand. GM tried to create their own version of Jeep with Hummer....that went well.
- The $11 billion in cash that Chrysler is sitting on will help GM try to reverse their current financial problems or at least keep them afloat for a few months.
- Getting rid of 1.5 million units of competitor products. The only people left buying Chrysler cars are American brand loyalists that are likely to end up buying a GM product rather than running to Toyota or Honda. Ford will probably benefit from this as well.
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