Challenger Garage

Rumors were flying. “There will be something BIG on November 4.” Then, “There will be something BIG on November 5.” Finally, “There will be something BIG on November 6.” Honestly, when nothing materialized on November 4 other than a historic election that hopefully lined up a nail in the coffin of a voluntarily, fully, irrationally separated [...]

The United States recently decided to give $700 billion in Treasuries to various banks, in return for apparently worthless securities. That might be an oversimplification, but it’s the gist of the deal. The program will be overseen by a Wall Street executive who is used to eight-digit salaries, and has been stripped of any promises [...]

This is just a quick summary for those who do not want to read the full Allpar survey results.  First, let’s look at the corporate history for ten years past and ten months forward. Fully 81% of respondents feel that the Daimler takeover did immense damage to Chrysler; 90% feel a GM takeover would do the [...]

A couple of weeks ago, we posted a rumor sent to us by someone who seemed authentic, describing how the Phoenix engine plant and all work around it had been dropped. Perhaps foolishly, we ran it — as a rumor, not as a fact — noting that it was a single source. In the past, [...]

The Detroit News is reporting that General Motors will announce “important changes” to its operation on Friday. Citing an internal company email, the News says GM CEO Rick Wagoner and Fritz Henderson, the company’s President and Chief Operating Officer, will outline plans to address challenges “brought on by the volatile global economic situation.” Earlier, we’d been [...]

Numerous sources, including Allpar, predicted a GM-Chrysler merger or takeover announcement on November 4 or November 5. Some major media sources believe this announcement will come with GM’s release of its earnings today. It is possible that an announcement was planned based on actions which have been halted or postponed, but it is also possible [...]

General Motors has not acquired Chrysler  - at least not yet. Chrysler can survive with or without a GM merger. Cerberus has the resources to keep it running. If GM and Chrysler do not merge, it will not cause them to go bankrupt.  Analysts are unlikely to have prior knowledge of any events. “You will know what happens [...]

Recently, we conducted a survey partly to see what you, the readers, wanted. Some of the things you wanted are mentioned in our survey results; but some other items of interest have just been accomplished, or are on their way. Before we start, though, let me say this loud and clear - Chrysler can stay or [...]

This was a comment from “Patfromigh” which I found interesting enough to make into its own entry. Keep in mind, I did NOT write it and am not necessarily saying I believe it. But it IS interesting. Was Cerberus just a middleman to get what Daimler really wanted in the first place? Remember the Valentines Day [...]

We have now gotten three reports of a “big announcement” on November 4 or November 5, involving GM and Chrysler. Speculation includes: the usual “GM giving Cerberus GMAC in return for Chrysler” rumor GM being purchased (in whole or in part) by Cerberus the formation of a new jointly owned company (”letting the old ones die”) both GM and [...]

“The GM executive told me the big announcement will be during election evening… and that it will be very bad indeed for Chrysler.” This statement made by a source who wishes to remain anonymous reinforces my earlier opinion. To summarize that: The deal will involve GM getting Federal aid to acquire and largely shut down Chrysler. The deal [...]

“The GM executive told me the big announcement will be during election evening… and that it will be very bad indeed for Chrysler.” This statement made by a source who wishes to remain anonymous reinforces my earlier opinion. To summarize that: The deal will involve GM getting Federal aid to acquire and largely shut down Chrysler. The deal [...]

General Motors and Chrysler are still both too big to fail. It is in the nation’s interest to keep them alive and solvent, with hundreds of thousands of jobs and America’s industrial future riding on their success. That’s not to say we should reward their leaders’ greed or incompetence with loads of cash, though. Rick Wagoner should [...]

I can’t really add anything. He really gets going in the second half. http://www.autoextremist.com/current/ Share and Enjoy:

The price of gasoline has fallen by over a dollar at most gas stations, causing a little-known “free software clause” to kick in. As a result, CodeWeavers is giving away its software today (October 28, 2008). Domestic automakers have apparently received some benefit as well, with big pickups and SUVs reportedly regaining some of their [...]

Much has been written about how the Chrysler-GM-GMAC-Cerberus deal (in reverse order of profitability) is slated to occur by November 4. Not much has been written about the reasons, though I proposed the only sensible (to me) explanation a few days ago - that any news coming out on November 4 would be largely ignored. [...]

Bill L. pointed us to an interesting blog entry over at weldingweb.com. There are lots of photos and the story of a welder who took his kids to Huntsville, where, like any good welder, he ends up inspecting the welds that were made decades ago… presumably under Chrysler’s care. Share and Enjoy:

GM has its problems.  The company really has too many carlines these days, given its reduced volume and the added “noise” in the market coming from the Asian and European makers. Originally, makes generally sold one or maybe two different cars — as in “really different.” The cars proliferated as time went on, and individual models [...]

Here is my theory: the goal is not to sell Chrysler by November 4. It is to sell Chrysler on November 4. First, let’s describe the paranoid version of this deal: General Motors will, under duress (including Cerberus’ abuse of GMAC to deny loans to most GM buyers) trade its share in GMAC and some stock for America’s [...]

General Motors and Chrysler may or may not merge. At this point, though, both will be weaker from the rumors that have been flying. Analysts and journalists have been fairly unanimous in their belief that neither company deserves to live. The jobs of tens of thousands of people - hundreds of thousands when suppliers are added [...]