Anyone got a crystal ball?

Anyone got a crystal ball?

22/10/2008 in

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There's been much speculation in recent days of a pending merger between General Motors and Chrysler.

Just how, or why, would that be a good thing?

Certainly Chrysler is in a mess and Cerberus hadn't seen a banking crisis and economic collapse on its radar when it bought the carmaker from Daimler.

But GM has its own problems. A glance at its product portfolio in the USA hints at some age-old brands which it really ought to kill off. Pontiac, GMC or Hummer anyone?

The trend may be for carmakers to ever-broaden their product portfolios, but with that comes some overlap which surely isn't economically sustainable or understandable when the market goes into freefall.

The last thing GM needs is to add yet more niche products to its extensive global range.

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There were glimmers of hope for Chrsyler in the UK, with the influence of Fiat's investment expected to be become clearer in its product strategy and an all-new market opened up with the launch of the Delta and Ypsilon, based on the Lancia models sold in mainland Europe.

But a bigger range hasn't yet brought a rise in sales for Chrysler, with sale down year-on-year.

The brand now has a four model range covering Delta, Ypsilon, Grand Voyager and 300C with pricing from around £10,000 to around £40,000.

If sales were to take off, the number of sales outlets would have to increase to maintain the momentum.

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