http://www.detnews.com/apps/pbcs.dll/article?AID=/20060918/UPDATE/609180404/1148/AUTO01
(http://"http://www.dnps.com/RealMedia/ads/click_lx.ads/www.detnews.com/updates/1812632754/300x250_1/OasDefault/MOMVI/300x250_openseason.jpg/33666562396366333435306632343730")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 on the report.
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 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 puppiesan 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.
In pre-market trading, GM shares rose 4 cents to $31.70 while Ford shares rose 2 cents to $8.04.
Citing several sources familiar with the talks, the paper said it is not clear whether the negotiations will bear fruit.
As of now, the two companies are not holding talks, and one source says there is a slim chance that anything will come of the situation, Automotive News said.
GM and Ford were not immediately available for comment
all I have to say is that the Ford design team better be in control here :(
Hell has frozen over.
http://money.cnn.com/2006/09/18/news/companies/ford_gm.reut/index.htm?postversion=2006091806
It's happened before, though not on such a large scale - Studebaker merged with Packard; Chrysler absorbed AMC, Olds/Chevy/Pontiac et al merged to form General Motors, etc.
That being said I don't see this merger happening. The deep psychological issues aside (imagine a modular Camaro or LS1 Mustang) I just don't see either company having anything to offer the other. Both companies are quite good at building boring vehicles that can't compete. Neither would benefit.
I do see more "joint venture" things such as the six speed tranny happening, though. Combining the engineering and money of both companies could help bring technologies to market faster, and parts such as steering boxes, transmissions, transfer cases, rear ends, etc don't affect brand loyalty that much anyway. Nobody would say "I'm not buying an Escalade because it's got the same transmission as a Navigator". Besides, this type of thing has hapened forever anyway (such as both Mustangs and Camaros having Borg Warner trannies, and ZF making trannies for many European brands).
After my first reaction to this news (seeing the artical on cnntoday.com) I got to thinking: Both companies current problems are caused by decades of "thinking they are invincible". They have failed to adapt to forign competition and come up with a stragety to compete; they often treat their customers like ; and both companies now face massive cutbacks. Perhaps they must merge to survive? Everyone knows they have to do something to stay in business. At least then we would be left with two domestic car companies (chrysler and Ford General Motor Company?)
doesnt Mercedes own chrysler?
Ford, a division of general motors... Hmmm, I dont like the sound of that.
Instead of 2 sinking ships you'll have one sinking ship with 2 captains fighting over who gets to steer.
Daimler and Chrysler are merged...
The only good thing that would come out of this would be.
Every domestic guy would be on each others side against imports.
:evilgrin:
but ehhh I don't really like the Idea because if ford goes, then mercury/lincoln are really in trouble. Which they already are..
heh, perhaps under GM they will release another cougar. If that is the case I'm with this thing.