GM drops 'acquisition' of Chrysler... O Really?

Let's make this clear, at first, there's the $25 Billion bailout for Detroit's Big Three, then out of no where, GM mentioned they're willing to 'takeover' Chrysler to 'help' each other out. We've never bothered to report this at the very beginning, even when everyone were even down to speculating which lineups from Chrysler will GM eliminate, and dreaming about HEMI powered Camaro SRT variants.

Now, it's crazy, unsound, illogical and stupendous to even conduct a 'strategic' merger for two manufacturing giants competing in the same market when both are in peril, to make it sound simple, when economy situation's worsened, bosses will go "oh go fcuk with Human Resource programs or employee education funding, get me SALESMEN!" In short, this goes with saying that you can forget about which workflow or operating procedure or culture to adapt,and focus on outbound issues - SALES. Of course many might argue about cutting costs by strategic platform sharing and employee horizontal expansion of job tasks, however those take time, and are relatively long term, whereas the single most fundamental questions in the Detroit Three are "Cars that are sitting waiting to be bought, of which they managed to screw their own ass by not lending out money to buyers buying their cars. Now, do you simply stop manufacturing when you haven't sold all your cream puffs out? Very different from bakeries, manufacturers would have to continue production, even if lowered, the 'projected', 'accounting terms' minimum gain should be enough to cover the cost of operating the factory, if not more losses would be incurred by simply astronomic fix costs of running or not running a factory.

Now, so what is GM's plan of trying to 'gobble' up Chrysler? Simple, more leverage to get more fundings from White House' recently approved $700 Billion bailout for major US firms, in short the bigger your piece of 'potential' problems, the bigger the pie you're getting I'd guessed. Shortly after announcing the 'possible merger', GM's asking for $10 Billion. Well the Fed's go "Where's the signed merger?" GM goes "Where's the money?" In short, both sides held a bit of 'Show me the money' mentality, of course which is not of Cerberus Capital's concerns, they're not enthusiasts, they're businessmen who didn't happened to know how to run a car company, as we can smell there're no petrol heads in there for all we care, and all they wanted to do now is to let go of Chrysler before it dries up their money.

Now back to GM, in terms of 'gobble' it might seem plausible, but that's when you think of GM's world's second largest car manufacturing firm, whereas Chrysler's recent dismal showings of a drop of around 30-40% in sales would have warrant GM an easy takeover bid? Nope, GM's shares had fallen so low, that if you wanna buy GM today, all of their assets and, well just anything i'd guessed had a total worth of $2.48 Billion, whereas Chrysler (Cerberus) had $11 Billion cash around. But I'd guess those three headed fund managers would rather invest in doughnut or coffee chains than investing in R&D, coming out with something-that-sounds-high-tech-with-their-automotive-related-alphabet-naming-of-R-G-T-S-V-where-everyone-else-had-already-have a few years ago.

We're actually glad GM's revealed their lousy plot by announcing a detraction from taking over the guilty-Chrysler-Sebring-manufacturer and go back focusing on getting their business right. Whereas Chrysler.... just leave Dodge and Jeep alone and go die please.