Ford, GM Alliance? **Ford, GM said to have talked about combining (page 1)**
#1
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Ford, GM Alliance? **Ford, GM said to have talked about combining (page 1)**
Sources familiar say talks are not currently ongoing and may not be fruitful, paper reports.
September 18 2006: 6:33 AM EDT
NEW YORK (Reuters) -- Senior executives at General Motors Corp. and Ford Motor Co. have discussed a merger or alliance, industry newspaper Automotive News reported Monday.
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 (Charts) and Ford (Charts) were not immediately available for comment.
The news comes just after Ford updated its turnaround plan on Friday, saying it would cut another 10,000 white-collar jobs, hasten and expand plant closings and suspend its dividend in the fourth quarter.
GM is in the midst of discussions with Nissan (Charts) and Renault about the possibility of a partnership.
Shares of Daimler Chrysler (Charts) edged higher Friday after said it would cut U.S. production through the end of 2006. Toyota (Charts) shares were slightly lower.
http://money.cnn.com/2006/09/18/news...ion=2006091806
September 18 2006: 6:33 AM EDT
NEW YORK (Reuters) -- Senior executives at General Motors Corp. and Ford Motor Co. have discussed a merger or alliance, industry newspaper Automotive News reported Monday.
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 (Charts) and Ford (Charts) were not immediately available for comment.
The news comes just after Ford updated its turnaround plan on Friday, saying it would cut another 10,000 white-collar jobs, hasten and expand plant closings and suspend its dividend in the fourth quarter.
GM is in the midst of discussions with Nissan (Charts) and Renault about the possibility of a partnership.
Shares of Daimler Chrysler (Charts) edged higher Friday after said it would cut U.S. production through the end of 2006. Toyota (Charts) shares were slightly lower.
http://money.cnn.com/2006/09/18/news...ion=2006091806
#3
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How does a GM / Ford alliance or merger make any sense? Both are truck sales dependent (however, GM is far ahead in alternative fuel technology); both have significant issues with union; both have issues with liquidity... and both have too many factories in the US.
If anything, someone from the outside has to form an alliance with a US company so that they can enter the marketplace without having to invest too much into factories, skilled labor, etc. I would think that either a European or Asian company would be a better fit to form an alliance than a Ford / GM merger.
If they did merge, what would happen to NASCAR? There are so many rivalries among the various domestic makes.
If anything, someone from the outside has to form an alliance with a US company so that they can enter the marketplace without having to invest too much into factories, skilled labor, etc. I would think that either a European or Asian company would be a better fit to form an alliance than a Ford / GM merger.
If they did merge, what would happen to NASCAR? There are so many rivalries among the various domestic makes.
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Report: GM, Ford Discuss Possible Merger - http://biz.yahoo.com/
DETROIT (AP) -- 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.
Two auto analysts said an outright GM-Ford merger is unlikely, and even lower-level cooperation that now takes place on such issues as hybrid vehicles, production technology and components requires careful attention to antitrust laws.
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's Oscar Suris, also speaking before business hours, said: "We're not commenting on speculation."
"It would surprise me if there were a coming-together on the grand level," said David Cole, head of the Center for Automotive Research in Ann Arbor.
"I don't see it from a business standpoint," said analyst Charles Fleetham of Project Innovations in Farmington Hills. "They have the same high health costs, high union costs, ineffective white collar work force that they want to get rid of."
Somewhere down the line, though, the number of companies that make cars is going to shrink, Cole said.
"There's going to be more consolidation. I think it's going to accelerate," Cole said.
Ford and GM very well could start more joint efforts similar to their current work to develop a six-speed automatic transmission, Cole said, adding, that contacts between automakers "go on all the time at the senior level."
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.
GM shares fell 26 cents to $31.40 in afternoon trading on the New York Stock Exchange, while Ford shares fell 25 cents to $7.77.
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.
Two auto analysts said an outright GM-Ford merger is unlikely, and even lower-level cooperation that now takes place on such issues as hybrid vehicles, production technology and components requires careful attention to antitrust laws.
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's Oscar Suris, also speaking before business hours, said: "We're not commenting on speculation."
"It would surprise me if there were a coming-together on the grand level," said David Cole, head of the Center for Automotive Research in Ann Arbor.
"I don't see it from a business standpoint," said analyst Charles Fleetham of Project Innovations in Farmington Hills. "They have the same high health costs, high union costs, ineffective white collar work force that they want to get rid of."
Somewhere down the line, though, the number of companies that make cars is going to shrink, Cole said.
"There's going to be more consolidation. I think it's going to accelerate," Cole said.
Ford and GM very well could start more joint efforts similar to their current work to develop a six-speed automatic transmission, Cole said, adding, that contacts between automakers "go on all the time at the senior level."
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.
GM shares fell 26 cents to $31.40 in afternoon trading on the New York Stock Exchange, while Ford shares fell 25 cents to $7.77.
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#8
Don't see what GM has to gain by taking on some heavy dead weight, maybe if this was 1998 it would have been a hot deal.
Ford is going to be the size of Cherry Auto Company by the time both get on solid feet in the USA.
Ford is going to be the size of Cherry Auto Company by the time both get on solid feet in the USA.
#9
Originally Posted by kansaiwalker1
2 drunks leaning on each other to stay standing....
Ford has waited to hit bottom where there is no bounce. There is nothing to gain between the two companies, Its a loser parade For Ford.
#10
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Originally Posted by heyitsme
Gm fell hard close to the bottom initially and managed to get some bounce in their new products cause they have new CARS waiting.
Ford has waited to hit bottom where there is no bounce. There is nothing to gain between the two companies, Its a loser parade For Ford.
Ford has waited to hit bottom where there is no bounce. There is nothing to gain between the two companies, Its a loser parade For Ford.
#11
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Originally Posted by titan
All we can look to at Ford in that arena has been the Fusion triplets and the 500/Montego twins. Ford continues to let Mercury flounder, and poor Lincoln is starving for attention.
Originally Posted by titan
Wrong. It's a pretty savy move on Ford's part. First of all, Ford's flush with cash. They have $25 billion in the bank. All of the talks of selling this brand and that brand is to bring their operating costs and profits inline.
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Originally Posted by derrick
It's true -- how many Mustangs can they sell to make a profit? And what I read in the paper today, Ford's lending status (ie bond rating) is equivalent to Argentina's. (Note: both are 'junk' status). How pathetic. Which leads me to wonder if this "$25 billion" in liquidity, as someone has posted earlier (in another thread), is true or not.
It's sad to think that Volvo and Mazda are the stars of Ford's cachet (at least, in North America).
It's sad to think that Volvo and Mazda are the stars of Ford's cachet (at least, in North America).
#14
Originally Posted by stangg172004
whats the point for gm? give a struggling company more problems? hmmm...
GM seems to be shedding their bad image by quick change, why pick up another bad image?
#15
Personally I would still not consider a GM after my father told me of all the things that had to be fixed uder warranty on his car
Fuel Injectors
ABS
Front Brakes (warped rotors)
not to mention the fitmint quality issues with his car......
Fuel Injectors
ABS
Front Brakes (warped rotors)
not to mention the fitmint quality issues with his car......
#16
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They both have dead weight (minivans, Cobalt, Five hundred, Mercury to name a few). All that is keeping Ford up right now is the Mustang, F150s, and Explorer. GM is geting better but slowly and not enough yet to know how they are going to be on the long term. Getting somebody like Nissian ot help them may be good for GM, but how can Nissan really say that it helps them? They are too big for GM to just add them onto their list of brands, and Nissian is too small to make it all Nissian. I think GM needs to cut down their line and stop making so many copies of the same car. At the same time, like Ford, they need to raise their build qualty on their cars. Toyota and Honda have been importing better built cars for over 20 yrs so they have the way in front of them. GM and Ford cannot say that it is where they are built. As GM and Ford are moving car production out of the US, Honda, Toyota, and Nissian have been building many factories in the US for final production, saving money and giving Americans jobs.
#18
Team Owner
Originally Posted by titan
Agreed. It's really hard to see what the Way Forward plan in store in terms of new product; all we've seen are job cuts. GM's rebound has been based on product; the GMT900 SUVs have been successfull. More importantly, it's new midsize cars are looking good; especially the Aura. The next Malibu will supposedly take on Camry toe to toe in every way. The Solitce and Sky are hits, and we've got rumors of the next gen Impala (along with the entire Pontiac division) going RWD. Not to mentiont he really promising Saturn Outlook, GMC Acadia, and Buick Enclave. All of this product equals a chance at salvation. All we can look to at Ford in that arena has been the Fusion triplets and the 500/Montego twins. Ford continues to let Mercury flounder, and poor Lincoln is starving for attention.
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And new Lincoln is
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