Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Automotive » Cars » Article
 

GM, Chrysler Deal Could Wound Michigan




By Glady Reign

As the adage says it if you want to be excellent in all you do, master the right timing. Timing is everything. When you want to open and close the valves on your engine at appropriate times, you need to install something as effective as the Volvo timing chain. Same is true with decisions. In connection with the possible deal between General Motors Corp. and the Chrysler Group, most critics say this is not the most opportune time to do it.

With the potential acquisition by the world's largest automaker of another ailing Detroit car manufacturer, thousands of white-collar jobs would be at risk. To sum up, all results would likely wrench and wound Michigan. Detroit's Big Three would be trimmed to the Big Two; as such, GM is expected to eliminate redundant positions.

People familiar with the GM-Chrysler talks say that discussions are still in the early stages however industry experts are predicting that the pairing of the two Detroit automakers would just bring chaos to Michigan since they have almost similar product lines.

"If the two combine, in my mind, it's insanity," Gerald Meyers, a business professor at the University of Michigan, said Monday. "With the exception of their international operations, the companies duplicate each other." Several economists have said that the possible deal is likely to economists said but it could result in a strengthened U.S. auto industry if more plants are closed to eliminate excess production capacity.

"What Michigan needs at the moment is a strong domestic auto industry," said Lou Glazer, the president of Michigan Future Inc., an Ann Arbor think tank studying work force and economic trends. "If this gets us there, that's more important than anything that will happen in the short term."

Meyers, a former chairman of American Motors Corp., which was acquired by Chrysler in 1987 added, "Whether or not anything comes of the negotiations, Chrysler has been told it's in play. All 80,000 people [at Chrysler] know they're not wanted. That has a severe effect, not only on morale but on the whole operation."

Carl Galeana, president of the Galeana Automotive Group, which has Dodge and Chrysler dealerships, said he felt like a part of DaimlerChrysler. "I've always been extremely loyal to Chrysler Corp. and DaimlerChrysler. It's kind of like being a kid and having your parents talk about getting rid of you," he said.

GM and Daimler have over 10,000 dealerships in the United States. They employ about 130,000 hourly workers and nearly 50,000 salaried staffers. About 94,000 individuals or nearly 50 percent of their combined work forces are in Michigan. This is the very reason why Michigan would be greatly wounded by the pairing of the auto giants.

David Cole, chairman of the Center for Automotive Research in Ann Arbor, said he did not believe a GM-Chrysler combination would affect the rate of decline in U.S. factory workers. He expects that number to keep shrinking. "With or without these mergers, we'll see continued restructuring," Cole said. "We have to get better aligned between profitable sales and production. On the other hand, a GM-Chrysler deal is likely to accelerate white-collar cuts. That's where you get your economies. For instance, you don't need two economists."

One of the reasons why critics predict the merger is the battle to make GM far ahead Toyota Motor Corp., its closest rival. "Maybe this is (a) way for General Motors to go from 25 percent share to 39 percent share" of the U.S. market, said John Schenden, general manager of Pro Chrysler-Jeep in Denver, Colo., and head of Chrysler's national dealer council. "Is this a tactic for UAW (United Auto Workers) negotiations?" he said. "Like I told my people, it's out of our control. We have to just worry about our day-to-day of selling cars."
 
 
About the Author
Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. She is a native of the motor city and grew up around cars hence her expertise in the automotive field. You can visit Volvo timing chain for more information.

Article Source: http://www.simplysearch4it.com/article/51893.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/51893.html" as shown above and make it hyperlinked.



  Some other articles by Glady Reign
Lean Business System Key to Toyota's Success
Toyota has been enjoying much success in the automotive industry. In fact, they are already poised to take over General Motors' spot as the world's largest car manufacturer. They may even ...

Camry Hybrid 50th Anniversary Edition to hit Showrooms in March
Toyota has been successfully doing business in the US for almost 50 years. In connection with their celebration of their 50th year of ...

Mariner Receives Upgrade for 2008 Model Year
In the competitive world of the automotive industry, car manufacturers have to be on their toes all the time. They always ...

The Ford F-350: A Heavy Duty Vehicle
Ford has always been known to produce large trucks. In fact, their F150 pickup truck is the best selling truck of all time. But the F150 is not the only ...

Kumho to Supply Tires for DaimlerChrysler AG
South Korea's Kumho Tires has set their sights on the OE business and it seems that they have started to achiever ...

Ultra Cool Audi R8 to Be Auctioned To Benefit Fight against AIDS
In September last year, Audi has introduced to the public the production version of the Audi R8. And from that time, the release of the R8 has been anticipated much by performance car enthusiasts. ...

  
  Recent Articles
Lean Business System Key to Toyota's Success
by Glady Reign

Camry Hybrid 50th Anniversary Edition to hit Showrooms in March
by Glady Reign

Mariner Receives Upgrade for 2008 Model Year
by Glady Reign

The Ford F-350: A Heavy Duty Vehicle
by Glady Reign

Kumho to Supply Tires for DaimlerChrysler AG
by Glady Reign

Ultra Cool Audi R8 to Be Auctioned To Benefit Fight against AIDS
by Glady Reign

Volvo Bids $1B For Nissan Diesel
by Anthony Fontanelle

GM-Chrysler Merger Would Hurt State Budget
by Anthony Fontanelle

One Car May No Longer Fit All
by Anthony Fontanelle

SIRIUS Satellite Radio and XM Satellite Radio to Merge
by Lauren Woods

2008 Cadillac CTS, Other Cadillac Vehicles Showcased in Geneva
by Lauren Woods

Subaru Vehicles Take Home Highest NHTSA Ratings
by James Russel

Can't connect to database