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GM, Ford Could Merge or Form Alliance
DETROIT – Executives of General Motors Corp. and Ford Motor Co. have discussed a possible merger or alliance, the trade journal Automotive News reported Monday. Both companies declined comment.Automotive News quoted what it said were several people familiar with the talks as saying that discussions involving senior executives began in July and are not taking place now.
The journal quoted one source as saying that GM Chief Financial Officer Fritz Henderson and his Ford counterpart, Don Leclair, discussed a GM-Ford alliance in August.
The report comes as GM and Ford have been slashing their work forces and closing plants in efforts to reverse multibillion dollar losses. Their sales have been hurt by competition from more fuel-efficient models from Asian automakers.
As the two biggest U.S. automakers, any deal would presumably face scrutiny by U.S. antitrust regulators.
In July, GM, Renault SA of France and Nissan Motor Co. of Japan announced a 90-day review of an alliance among them.
“As we’ve often said, GM officials routinely discuss issues of mutual interest with other automakers,” GM spokesman Brian Akre said before business hours Monday. “As a policy, we do not confirm or comment publicly on those private discussions, which in many cases do not lead anywhere.”
Ford Oscar Suris, also speaking before business hours, said: “We’re not commenting on speculation.”
Talk of alliances involving GM came after GM shareholder Kirk Kerkorian, who owns a 9.9 percent stake in the company, called for GM, Renault and Nissan to pursue an alliance.
Carlos Ghosn, the chief executive of Renault and Nissan, has said the benefits from an alliance would be similar to the gains from the Renault-Nissan alliance, which have included cost savings from joint purchases of auto parts.
Ford earlier declined to comment on an August Wall Street Journal report that then-Chief Executive Bill Ford approached Ghosn about a Ford alliance with Renault and Nissan.
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not that much really. local news here in metro detroit is saying the most that will come of it is more joint projects. Apparently awhile back they did a joint venture on an automatic six gear transmission. They aren’t doing a dcx merger. At least not for now……
Quote:Their sales have been hurt by competition from more fuel-efficient models from Asian automakers.This is nothing but their own fault! They have plenty of fuel efficient models over in Europe, and they usually are of higher quality too, Ford and GM made this hole them selves, and the only way they are going to get out of it is by realizing they have lots of good products are available in other markets that will work here if branded right and marketed in certian areas.
The sum of two companies with bad management does not bode well for their future. They brought on their own problems, now they have to deal with them.
Quote:The sum of two companies with bad management does not bode well for their future. They brought on their own problems, now they have to deal with them.Unfortunately, it’s the workers that will have to deal with it. It won’t affect the people making the bad decisions. They will get big bonuses to stay and make even more bad decisions.
Kinda makes you believe in socialism huh? LOL
Quote:Unfortunately, it’s the workers that will have to deal with it. It won’t affect the people making the bad decisions. They will get big bonuses to stay and make even more bad decisions.Your right, its the workers who get the short end of the stick. The people at the top usually have a golden parachute if they are let go. The system sucks.
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