Chris_F wrote on Mar 6^th, 2007 at 3:29pm:


As far as buying a company to run it into the ground, its called eliminating competition.  Right now, their are some market segments in which the two companies compete and some in which they dont.  GM will make sure that if they buy the company theyll make sure they arent cannbalizing eachother.

When I say GM trucks, Im talking about the GM manufactured GMT900 Chevy Silverado and GMC Sierra.  The Rams until they are redesigned would be manufactured by Chrysler plants using the same amount of Chrysler Parts, making them Chrysler trucks.  Its like when two airlines merge, they cut down on flights on certain routes because their may not be a need for the flights from both preexisting carriers. 

Some models, like the DOdge Caliber, would probably be kept because that is a market where GM really doesnt have an entry.

bok269 wrote on Mar 6^th, 2007 at 11:44pm:
Why buy it then?  If their product is worse than yours then just compete with them head to head and drive them out of the segment.  If their prodcut is superior to yours then why buy them and substitute your own product instead of keeping their product and dropping yours?

Sure, when one company buys another they do wittle away their redundant products.  That just makes sense.  The way I read your post though it sounded like GM's motivation for buying Chrysler was simply to torpedo them.  That would be like buying a Fabroge egg just to smash it.  Sure there's one less egg around to worry about but you're also out a LOT of cash in the process.

Well if GM will use Dodge Trucks then GMC is going to have to go! Chevy Trucks and GMC are the same thing only in a different dealership. I guess GM wants to completely outsell Ford.