GM wants to buy Chrysler. They haven’t created enough trouble for themselves, yet!


The Chrysler Group and General Motors are holding discussions about a joint project that would provide Chrysler with a version of the big Chevrolet Tahoe sport utility.


The first product I expect from General Chrysler

The Chrysler Group and General Motors are holding discussions about a joint project that would provide Chrysler with a version of the big Chevrolet Tahoe sport utility, people with direct knowledge of the talks said Thursday night.

Under the most likely situation, G.M. would produce a big S.U.V. for Chrysler to sell in the United States and other markets.

S.U.V. sales peaked in 2002, but have fallen since then, especially after gasoline prices spiked above $3 a gallon in 2005 and 2006. The drop in S.U.V. sales was one reason G.M. lost $10.6 billion in 2005, prompting the company to initiate its own revamping efforts.

“It’s ironic that both of them are in financial trouble because they’re too dependent on big vehicles, and now they’re talking about doing a big vehicle together,” said Kevin Smith, editorial director of Edmunds.com, a Web site that offers car-buying advice.

I’m so nonplussed it’s hard to come up with a polite comment. True, the American business model almost requires ignoring trends beyond the next 2 quarters. These clowns are ignoring the last three or four years.
I guess Ford will bring back the Edsel, next.

Posted: Mon - February 19, 2007 at 10:52 AM