GM & Chrysler

Ok, I'm not a business guru, but I don't think you need to be to wonder about the merger talks between Chrysler and GM. Now, nobody knows how far along the merger talks are, and it was mentioned today that they have "slowed" because of "investor skepticism," but there still are talks of sorts.

My question is...why? Now, the simple answer is GM needs cash, Chrysler has cash. Ok, so I understand that.

Beyond the cash, what do the companies have to offer? Both have far too much production capacity. They both have line-ups that are bloated with trucks and SUVs and are trying to rapidly change that. Both have far too many dealerships. Both have too many cross-brand vehicles. (That's a matter of opinion, but I think they do.)

They are two companies with the same problems. Both are coming out with more hybrid vehicles. I for one am excited by our 5.7Hemi hybrid, which (in theory) gets our Durango/Aspens up to around mid 20MPGs. Both are slashing production as much as they can. Both would be happy to see about 1/3 of their dealerships consolidate or go under. (Rough estimate. Probably varies around the country, but I would think that 1/4 to 1/3 could go and make the parent companies happy.)

I don't know about GM, but for Chrysler I would think merging or partnering with a Nissan or Hyundai would make FAR more sense. Or even Renault. I don't know as much about Renault. Both Hyundai and Nissan would benefit from increased exposure, and Chrysler would gain from smaller more fuel efficient vehicles.

Again, I don't claim tons of business knowledge, but at least on the surface, a merger between two struggling companies with many of the same problems seems silly.