Ford, GM Reportedly Discuss Merger, Alliance

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Ford, GM Reportedly Discuss Merger, Alliance CHICAGO (Sept. 18) - Senior executives at General Motors Corp. and Ford Motor Co. have discussed a merger or alliance, industry newspaper Automotive News reported on Monday. Citing several sources familiar with the talks, the paper said it was not clear whether the negotiations will bear fruit. As of now, the two companies, both struggling with shrinking market shares while restructuring operations, are not holding talks, and one source said there is a slim chance that anything will come of the situation, Automotive News said. GM and Ford declined to confirm any talks. "As we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Brian Akre said. "As a policy, we do not confirm or comment publicly on those private discussions, which in many cases never lead anywhere." Ford spokesman Tom Hoyt said the automaker does not comment on speculation. On Friday, Ford said it would slash $5 billion in costs and one-third of its work force as it warned its auto business would not make a profit in North America for another three years. It also suspended its dividend and pledged to revamp a vehicle line-up seen as weak by analysts. However, the No. 2 U.S. automaker ruled out an immediate sale of its Jaguar brand, disappointing investors who wanted Ford to press ahead with asset sales to raise cash, sending shares to their biggest single-day percentage decline in almost four years. Earlier this month, Ford named Alan Mulally, a former Boeing Co. executive, as chief executive, ending the troubled five-year stint of Bill Ford Jr. as the company's operational head. GM is in the midst of its own restructuring as it tries to recover from a $10.6 billion loss in 2005. Turnaround efforts at the world's largest automaker have gained traction this year as 34,400 workers -- about a third of its work force -- have accepted early retirement and buyout offers. GM is also closing 12 plants. Still, CEO Rick Wagoner is under pressure to show further improvement as GM studies a possible tie-up with Nissan Motor Co. Ltd. and Renault SA in which Nissan and Renault could buy up to a 20 percent stake in GM. That deal, urged by GM's largest individual shareholder, billionaire investor Kirk Kerkorian, has been widely viewed as a means of prodding Wagoner to speed up the company's turnaround efforts. Last year, GM and Ford agreed to jointly develop a new 6-speed transmission, which is in production in plants at both companies. 09/18/06
 
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That would be horrable!!! If that happened instead of two domestic companies that turn out junk we would only have one!!! I am still hopeing for an American Automotive OEM to retake the throne for quality,durability and desirability!!! If these two OEM's combine it will seal their doom!!! They will never get quality to acceptable levels.
 
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"That would be horrable!!!" If it takes such a merger to compete in this "world economy" I think it should happen.
 
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On the other hand if the American economy only had to support one combined domestic automaker turning out junk, perhaps the amalgamated QC effort would better assure more consistent junk. (The way it is, occasionally a good sample comes through periodically...)
 
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1,141
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Texas
"On the other hand if the American economy only had to support one combined domestic automaker turning out junk, perhaps the amalgamated QC effort would better assure more consistent junk." I hope that the basis this (rumored) merger would be that this company (after the rumored merger) will produce the best vehicles available anywhere, period, at a competitive price and be able to compete with any country around the world.
 

Kestas

Staff member
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Boy have things made an about face! I can remember not too long ago - when GM had 60% US market share - that there was pressure for GM to split up the oligopoly they created.... now they're talking about merger with another company!!
 
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Hi While a merger may not fix the "junk" they make, but what will fix the "quality" construction of my neighbor's Camry's drivers side door. Is oxidation a new toyotas feature ? BTW, the last three of my GM "junk" cars combined for a total of 750,000 miles. Luck....?
 
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quote:
Originally posted by avette: So everything is honkey-dorey then. GM is the definition of quality. Toyota is junk. Nothing to worry about.
Unless you own one of those recall prone Toyotas that is.
 
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SE Pa
Not to toot my own horn, but I described that scenario here not that long ago. It's good to see that the auto execs read BITOG.
 
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