Rumor: GM and Ford Discuss Alliance, Possible Merger

[bon]

Interesting tidbit from Autoblog

"Automotive News reported early this morning that senior executives within Ford and GM have explored the possibility of an alliance, even a merger, in the near future.

The supposed talks between the two Detroit titans began sometime in July, soon after Rick Wagoner and Carlos Ghosn began investigating the benefits of a GM/Renault/Nissan threesome. The sources cited by Automotive News have not been able to confirm who opened the door to the talks, with one insider saying that Wagoner was the instigator, while another source disputes that assertion. It is known that a possible merger was discussed between the General's CFO, Fritz Henderson and Don Leclair, Ford's own CFO sometime in August.

Although the idea of a Ford/GM alliance may seem odd at first glance, one only needs to look at the tremendous stake each company has in the other's continued existence. The most potentially catastrophic scenario would include GM or Ford declaring bankruptcy, leaving their mutual parts suppliers blowing in the financial winds and subsequently cutting off the other from much-needed materials. It could be argued that both would go down and quickly.

Although it's doubtful anything of this magnitude would come to fruition, the dependency each of the players share may warrant a second look at a union between what's left of the 'Big 3.' At this point however, spokespeople for both GM and Ford are relying on the "no comment" approach to get them through the next few days."

[empy]

there is this small issue called US antitrust law...

[mikmik316]

there is this small issue called US antitrust law...

hindi siguro sir... GM is no.1, Toyota no.2, Ford no. 3...

combining GM & Ford makes them no.1, Toyota is still a strong no. 2

So walang monopoly... saka madaming competitors e... Euro, Japs, Koreans...

[jamesvhong]

I read sa isang news site na mag babawas ang FORD ng 40,000 Employees.

Nde kaya connected yun sa pag bawas ng employeer dito or talgang lugi na ang FORD? At may nabasa din ako na kinukuha nila isang sikat at magaling Executive (Engineer) na nag work sa NASA (dati) para maging President ng company.

Sensya nde ko maibigay details kasi nde ko na makita yung mga article na yun.

[niky]

They're getting Boeing's president to run the company.

And the Job cuts are in-line with downsizing and an anticipated drastic drop in market share. Ford's trucks are still selling well, but sales are starting to go down... so they're cutting their losses before they get burned.

A Ford-GM merger would be hellishly difficult... and I'd be weary of merging with GM, as their record in mergers is pretty grim.

But seeing how Fiat managed to dick GM out of a billion dollars, hey, good for Ford.

[mazdamazda]

As to the failed Fiat-GM merger... it's GM who will be laughing after a few years. Sure a few billion dollars might hurt a bit but Fiat's future is more bleak than GM.

As to the Ford & GM merger - well it doesn't make sense for Ford. Ford will be able to weather slower truck sales by even introducing its European lineup stateside.

GM's sights are also focused elsewhere (Korea & China) for salvation.

[oldblue]

They're getting Boeing's president to run the company.

And the Job cuts are in-line with downsizing and an anticipated drastic drop in market share. Ford's trucks are still selling well, but sales are starting to go down... so they're cutting their losses before they get burned.

A Ford-GM merger would be hellishly difficult... and I'd be weary of merging with GM, as their record in mergers is pretty grim.

But seeing how Fiat managed to dick GM out of a billion dollars, hey, good for Ford.

if they're getting boeing's president, are we too expect flying cars in the not too distant future?

[Helios]

indeed it would be interesting. this will allow for diversification of business risks, but the lack of focus because of this merger can make managing the diverse interests more difficult. who knows but ford can still run autonomously even under this flagship, or they may just run the course similar to what you're implying.

[Jun aka Pekto]

Seems like GM's more worried about Hyundai. They have started airing commercials about their new 100,000 mile warranty which to me is a direct aim at Hyundai.

Also, dropping my kid off at school, I'm seeing more and more Hyundai vehicles on the road. Seeing 5 Hyundai vehicles in a row (spontaneously) ahead of me is something I've never seen before.

[ronald_m]

Seems like GM's more worried about Hyundai. They have started airing commercials about their new 100,000 mile warranty which to me is a direct aim at Hyundai.

Also, dropping my kid off at school, I'm seeing more and more Hyundai vehicles on the road. Seeing 5 Hyundai vehicles in a row (spontaneously) ahead of me is something I've never seen before.

Jun,
I think GM is copying hyundai marketing strategy.

[Jun aka Pekto]

Jun,
I think GM is copying hyundai marketing strategy.

Hyundai's strategy seems to be working, then. At least around here, there are a lot of Hyundais. Here in Tucson AZ, there seems to be a lot of Hyundai Tucsons.

[userfriendly]

GM Ford company, ok yan. We can call the company "Grand Malfunction Found On Road Dead"

[niky]

Ford GM nalang... "Found On Road Dead, Get Mechanic!"

The long warranty is a good way to get customers back, and it's not a bad idea. Considering most new cars can expect to get to 100,000 miles anyway, the number of customers claiming warranty issues on their drivetrains at 90,000 miles will be statistically small.

And another boost is, you'll have people coming to the dealership for oil changes for a much longer period of time... i.e.: more $$$ for the company.