Remember how we heard that General Motors may be in the process of purchasing the Chrysler Group from DaimlerChrysler for $13 billion? According to Merrill Lynch analyst John Murphy, this could be thought of as a "defensive maneuver". You see, GM may still be the top automaker in the world in terms of sheer volume, but Toyota is quickly creeping up on those numbers. By buying Chrysler, GM is essentially buying their market share, adding it to their own, and setting themselves up to have a very significant lead on Toyota. But you've got to wonder, is this the right move?
After all, General Motors already has enough brands in its camp, many of which are lacking any sort of real identity. We've seen the death of Oldsmobile and I have a feeling that Buick may be the next to go. Cadillac is moving downscale with more entry-level vehicles. The list goes on and on. If the deal does get approved, GM will be adding Chrysler, Dodge, and Jeep to a lineup that's already crowded (and confusing) enough as is. Will they merge Hummer with Jeep? Eliminate some overlapping pickup trucks? What about the Dodge SX 2.0 vs. Pontiac Pursuit vs. Chevrolet Cobalt? We'll have to let the future write itself, but it's certainly an interesting time in the automotive world.
In any case, industry pundits have the GM acquisition of the Chrysler Group at a 50/50 chance right now. Stay tuned for more as it develops.
