Chrysler merger talk has pros and cons

With 16% slotted as the sales drop for 2008, and another 11% drop targeted for 2009, the red keeps on getting deeper and deeper for Chrysler, which has prompted discussion of what the next move is for the auto maker. And when I say discussion, I mean merger rumors.

Naturally, the first thing to think about is taking two of the biggest losers of 2008, General Motors and Chrysler, and pool together what they still have to be one bigger company. However, misery loves company, and who's to say that just by taking two bag apples and trying to make applesauce of out of them will taste any good? Without a plan that really puts a solid business infrastructure going forward that can challenge global biggies Toyota and Honda, it really doesn't matter until those i's are dotted and t's crossed.

There's also a possibility of a foreign suitor taking over Chrysler, namely Nissan, who has a partnership with Renault of France. Having a strong brand take over a weaker one really is a no brainer in terms of improving the product, but will Americans build confidence in a company that has been taken from their soil? That's a mighty big risk considering consumer confidence is lower than ever.

Chrysler won't file bankruptcy--if the company goes into severe jeopardy, a merger will happen--and they both have pros and cons. Stay tuned...

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Chrysler merger talk has pros and cons

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