The fight for Chrysler

[wwgkd]

Hyundai buying Jeep from Chrysler? The results of that purchase would be very interesting.

Or scary.

[culver]

I am very sure why....being associated with the US automotive industry these days is a guarantee for diving stock prices....so if you want to ruin a sound company, say that is has interest in buying.....Pontiac or so...

That's easy. For a number of reasons the domestic US companies have large liabilities. Most of those liabilities are in the form of expected healthcare and pension payouts. No one wants to take on those payouts in order to get the good parts of the companies. Even worse for Chrysler, Mercedes so mismanaged the company that much of what was good about Chrysler in the 1990s (innovative, daring, great styling department) has been gutted. About all they have left is the HEMI engine family and the Jeep line. Both are great products in their respective segments but both are hurting in times of high gas prices.

If the US magically switched over to socialized healthcare and pension tomorrow (not likely) then the primary negative on the company's balance sheets would go away. That would then allow them to get the short term credit they need to make it through this bad market. Though Chrysler would still be in trouble because they don't have any good small car operations and again, MB did a great job of savaging the company.