Automotive News, Media & Press - GM and Ford combine?!? Any truth to this rumor?




01bird58
12-05-2006, 07:55 PM
I would consider my dad very well informed, always listening to the news and all forms of media. Tonight he said hes heard people in the media state that Ford and GM may be forced to merge in the future in order to stay alive. Am I grossly uninformed or have others heard about this as well? I know how poor both are being run, my uncle works for GM and has not helped to build a car for 5 years since his plant closed, but has receive full benefits and pay because of his contract. Any company cannot operate like this no matter how big. Any thoughts?


OctaneZ28
12-05-2006, 09:00 PM
Not a chance.

jking
12-21-2006, 08:49 PM
I read something about this in the business section of our local paper a while back, but I don't put much faith into it..


ULTIMATEORANGESS
12-21-2006, 09:00 PM
i dont think itll happen.

RPM WS6
12-21-2006, 09:35 PM
I would consider my dad very well informed, always listening to the news and all forms of media. Tonight he said hes heard people in the media state that Ford and GM may be forced to merge in the future in order to stay alive. Am I grossly uninformed or have others heard about this as well? I know how poor both are being run, my uncle works for GM and has not helped to build a car for 5 years since his plant closed, but has receive full benefits and pay because of his contract. Any company cannot operate like this no matter how big. Any thoughts?

I don't think this would be a good busniess move.

I can't see how a merger would offer any benfit to either company or to the consumers.

Both of these companies have very similar weaknesses and very similar strenghts. What would be gained by combining the two? They are not complemtary to each other, but rather two massive corporations that are straight up rivals and both facing the same serious challenges. They bring the same popular products to the table, and the same slow movers. If you merge the two, which products do you drop? You've got strong truck/SUV sales on both sides, and weak car sales in comparison. Frankly I think this would be a worse move for GM than Ford. Considering GM has more market share, more cash, better sales, and what will likely prove to be a stronger new product pipeline, what positives can Ford add to the equation? Taking on Ford would only work to slow GM's recovery.

GM needs to trim the fat, not add more.