Staff Report | News

Possible GM-Chrysler merger concerns employees, consumers

With current auto sale and economic plunges, talk of a General Motors-Chrysler merger stirs up employees and consumers.

GM has been on a steady sales decline this year, which has led to discussions of merging with Chrysler so both can continue to exist. GM’s vehicles have not been selling as well, especially with the previous gas prices and the dwindling economy.

“Locally we have been holding our own, and our sales have been equal or greater than usual,” said Chris Pratt, the executive manager at Shaheen Buick Pontiac GMC dealership, 116 N. Mission St.

According to The New York Times, GM will most likely lose its title as the world’s largest automaker this year to Toyota by more than 400,000 vehicles. Neither GM or Chrysler has been able to obtain the financing for the merger yet.

Although GM’s sales have been unsteady globally, that is not the case for local dealerships.

Pratt said the neighboring areas have not been as dramatically affected by decreasing auto sales. The GM-Chrysler merger would be a long shot, and he said he cannot see any major advantages for GM if they merge.

“The merger would help GM local sales become more profitable, but it would also cut out a lot of white-and blue-collar jobs,” said James Hill, economics professor.

Even as the local auto sales are still holding on, a merge could possibly cut out job options for many local employees. Many employees for GM and Chrysler are being kept in the dark from the businesses’ plans for the merger. There are strategies being set for cost and performance improvements, but most GM employees are not being exposed to any major information yet.

The personnel director at the GM Service and Parts Operations plant in Swartz Creek said GM employees are concerned about the merger, but there are only rumors right now.

Other areas of the economy are affecting the auto industry, along with the debate of a merger.

“The problems in the banking industry have helped drive interest rates and financing right out of the ground, which has had an obvious effect on GM’s sales,” the personnel director said.

GM builds cars and trucks, and the sales for the bigger vehicles have been weakening with gas costs.

The personnel director said GM has a successful footprint all over the world, especially in China and the eastern former U.S.S.R., but GM has been struggling in North America. The consumers dictate what GM and Chrysler do and what products they put out.

There are many advantages and disadvantages to a merger. If the two don’t merge, GM and Chrysler’s sales could continue to fall, and if they do merge many jobs could be eliminated, he said.

“It’s going to be ugly no matter what. It’s like pick your poison,” the personnel director said.

news@cm-life.com

E-mail the author: Chelsea White

This post was written by:

Chelsea White - who has written 20 posts on Central Michigan Life.




Leave a Reply

Central Michigan Life encourages those who wish to leave comments, questions or feedback to do so here. Any posts with profanity, excessive defamation or other questionable language are subject to removal at the discretion of CM Life. Direct all questions regarding this policy to the Editor in Chief.

Follow Us

(Sports)
Advertise Here
Advertise Here

Facebook

Overheard @ CMU

Hear something funny on campus? Want to share it with other readers? Click here to fill out the form! We will select our favorite entries for publishing on Page A2 of our print edition.

What We're Reading

Advertising Age

Consumers Trust Their Friends Less

Brian Manzullo: People need to hear/see things in multiple places in order to "believe" it. This story says five, but even two could work.  
Mashable

World’s Longest-Married Couple to Answer Your Romantic Queries Via Twitte

David Veselenak: Who says you can teach an old dog new tricks?They've been married since 1924, which makes it 86 years.  
Read Write Web

5 Reasons to Wait for iPad 2.0

Brian Manzullo: This is how Apple works - iPod and iPhone were flawed when they first came out. Wait for 2nd or 3rd gen iPad and you won't be sorry.  

See more recommended links!

Text Alerts

Phone number

Carrier

*Standard text messaging rates may apply from your carrier*