Monday, October 20, 2008

GM-Chrysler Merger Compared to Studebaker-Packard

US News and World Report is comparing a possible GM-Chrysler merger to the Studebaker-Packard merger of the '50s.

"While several industry analysts have panned the idea of a merger, not everyone sees only downsides. Detroit News Columnist Ray Windecker writes that while the merger may seem to be "two drunks leaning on each other . . . what is missed is what happens when the less inebriated drunk picks the pocket of his partner."

"He compares the merger to the Studebaker/Packard merger of the 1950s. "Studebaker had a larger number of dealers," he writes, "an interesting but overpriced collection of smaller and sporty cars and a decent line of light and medium trucks. Packard only had moderately updated luxury cars, but it did have cash." In this case, "GM has the dealer and product advantages, while Chrysler (through its majority owner Cerberus) has spare cash."

Read the full article on US News and World Report.

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