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Does Ford need an alliance as much as GM?

07/14/2006, 6:23 PM

By admin

Ford needs a partner like Renault just as badly as General Motors, says Bloomberg columnist Doron Levin. But involvement of the Ford family in the company could prevent that, he says. “Unfortunately for most shareholders, Ford is an unlikely candidate for a broad collaboration similar to the one GM is contemplating with Renault SA and Nissan Motor,” writes Levin. “The reason: the Ford family’s controlling interest in the No. 2 U.S. automaker.” He says “Ford Motor’s unusual capital structure has insulated the Ford family from the checks and balances on management found at GM and most other publicly traded companies.” Levin is specifically critical of Bill Ford’s leadership. “The family gambled on taking management in its own hands and lost,” Levin says.

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07/14, 6:37 PM

posted by:

I Wankalot

No one has yet explained how an alliance will benefit GM, other than the fact that it will be Carlos Ghosn shutting down GM and not Rick Wagoner.

07/14, 6:48 PM

posted by:

PAUL D.

I think GM fans even GM upper managment are thinking this is a way of sneaking Ghosn away from Renault. SInce he was successful at turning around Nissan, he could potentially revive the sinking ship that is GM. A much, much, much larger task than Nissan and one that I don’t believe has the life support left to be saved.

But stranger things have happened I guess

07/14, 7:19 PM

posted by:

Jane Leno

I believe Chevy, Cadillac and GMC can be saved. The other brands have been so tarnished they are like MG ROver and best put down

07/14, 7:29 PM

posted by:

Madcapp

Only thing that’s gonna save GM and Ford right now would be an alliance with the devil. Better get your butt on down to the crossroads.

07/14, 9:20 PM

posted by:

pj

GM alliance is better becaus eit makes nissan look bad so less people buy a nissan and so there are more buyers that may buy a gm but doubted ford is better =)

07/14, 10:10 PM

posted by:

Uncle Sam

GM isn’t going down you Moron’s, and they don’t need any “alliance” (new term for “merger of equals” !) either. GM worldwide sales are growing. Yes, in the north american market they have to painfully adjust capacity to the market, and deal with UAW/labor issues. But the real proof is in the product, GM currently has some very fine cars, trucks, and SUV’s. There’s still some dog’s in the garage too, and GM knows that. But segment by segment, GM is getting better at everything they do, from new product launch, manufacturing and quality, GM is building some world class vehicles. So quit kissing Asian ass, and wake up doomsdayer’s ! :-)

07/14, 11:01 PM

posted by:

Anonymous

Those “Very fine cars” you see must not be available here in the US… Cause the only thing we’s got is them there pickumup trucks and Cowboy Cadilac SUV’s here in America

07/14, 11:08 PM

posted by:

Kickin

3/4 of GM’s lineup are “Dogs”. That’s what happens when you concentrate on Gashog SUV’s in the time of 3 dollar plus gas

07/14, 11:34 PM

posted by:

Thing2

Problem: GM got too big and lost its vision and control of the market and the companies (and product’s) direction.

Solution?: Make it even bigger with an alliance with two other companies.

Someone explain how making GM even more complicated to run is going to help them? As it is, it takes forever for the company to get anything decided on due to the unions and the Coporate spiderweb of authority.

07/15, 12:26 AM

posted by:

Anonymous

Wait- I thought this was about Ford…

07/15, 7:45 AM

posted by:

Uncle Sam

#7 you forgot the CTS, STS, Lucerne, Impala, Grand Prix, Mailbu, G6, Saab 9-3, all of which are CARS for the North American market and, while you may not care for them or understand their merits, they stack up and compare very favorably to any of their competition, foreign or domestic. And yes, as you implied, GM also builds world class trucks and SUV’s, none of which Toyota or Nissan have been able to match to date, even though they have tried to establish themselves in these segments with little or no success……..

07/15, 7:48 AM

posted by:

Uncle Sam

#10 is absolutely right….this is supposed to be about Ford. And with the Ford family controlling a 52% stake of the company, unless they are eager and willing, an “alliance” with anybody is out of the question.

07/15, 8:43 AM

posted by:

Uncle Sam

Great post VDub, thank-you !

07/15, 11:05 AM

posted by:

Anonymous

#12, you just named half of the Hertz rental fleet… If a Malibu, Impala, Lucerne or G6 is your definition of a fine car, you must be a car dealer or work for Hertz. Saab is a loser and the CTS has an interior with materials and build outclassed by a Kia Spectra. You must be a dealer or you’ve just never actually driven the competition.

07/15, 12:50 PM

posted by:

Uncle Sam

Oh, but I have my friend. And I’ve found that these vehicles are very competent and reliable, on par with any Toyota/Nissan I’ve ever driven. I’m actually disappointed in Nissan’s, they’re garbage. Honda’s are very nice, as are BMW’s. But for everyday transportation, I find the GM vehicles I named to more than fll the bill. Perhap’s you haven’t driven one lately ? Whatever, the case, you have your opinion and I have mine. By the way, the last time I was at Hertz in San Diego, the fleet was full of Camry’s…..

07/15, 3:54 PM

posted by:

Anonymous

FYI, an alliance is not a merger. Ghosn would have no say in the managing of GM.

Just for the record, since… you know… most of the commenters here are to stupid to research before they post.

07/15, 6:25 PM

posted by:

Uncle Sam

If you actually believe what you just posted in #17, then yes, you are a Moron, and you’re right, you did not do any research before your post…..

07/15, 8:37 PM

posted by:

Hrm

REPORT: Toyota considering GM linkup

Toyota Motor Corp. is considering making a bid to link with General Motors, according to a report in BusinessWeek magazine. The move would be aimed at trumping a proposed alliance between GM and Renault-Nissan.

The magazine reported Saturday that Toyota “is considering its options and looking at different opportunities that they could propose to GM.” It said Toyota executives have “war gamed” possible scenarios by which it could help GM with its turnaround.

BusinessWeek quoted an unnamed Toyota executive who said, “Toyota has no interest in seeing an alliance like this [involving Renault, Nissan and GM] take place.”

GM CEO Rick Wagoner and Renault-Nissan boss Carlos Ghosn met Friday night in Detroit. The companies later issued a joint statement saying they will take about 90 days to explore potential benefits of a tie-up.

Wagoner hinted to Automotive News last week that deals with other automakers besides Renault-Nissan are possible.

“Could other things arise?” he said. “Sure, they could happen any time, but nothing else I can talk to you about today.”

07/15, 10:04 PM

posted by:

Uncle Sam

WOW ! Thanx #18, that was a very informative post.

07/15, 10:05 PM

posted by:

Uncle Sam

Uh, my bad, I meant #19, sorry !!

07/15, 10:10 PM

posted by:

Uncle Sam

Here’s a link for Hrm’s post;

http://businessweek.com/

07/15, 10:15 PM

posted by:

Uncle Sam

From the BusinessWeek article #17;

GM executives see the Renault-Nissan alliance as a play by Kerkorian—GM’s fourth-largest shareholder, with 10% of the stock—to get Carlos Ghosn into the driver’s seat at GM

07/16, 2:10 AM

posted by:

Not Gonna Say

What GM has to do, no matter who’s in charge, is for 1: Kill Buick, after producing the Enclave, of course. I’d actually buy one of those over many of the cars and trucks that r out n coming out. 2: Either kill Pontiac, or turn it into a niche vehicle line [w/ no more rebadges what so ever] w/ only bout 4 or 5 models the most. 3: Produce Saab’s closer to the concepts to compete better against their competition. And 4: Make better looking Chevy’s cars; all the big trucks r excellent looking inside n out. They’re confusing the people w/ so many nameplates n rebadges taking eyes off of nameplates that w/ a little shapind up in design can give them sales n repitation they need.

07/16, 2:33 AM

posted by:

Not Gonna Say

As for Ford, Ford needs to either kill Mercury ["The upscale Ford"] r if it means that much to whom ever as a nameplate, give it its own sheet metal (go retro, whatever). And give some of the upscale looks to the Ford models. Lincoln’s future vehicles r looking very competitive; I like, I like alot. Also be they have to be careful not to slip up on the designs of the foreign brands they own. Keeping up w/ improving quality n reliability n doing what I said is what’s going to help that car company. They can do it w/ 2 nameplates + their foreign ones. Or 3 nameplates, Ford upscaled a bit, the new Lincolns n a retro Mercury + their foreign ones. Neither company needs an alliance; an alliance won’t FIX neither one of them. It’s all within the companies themselves!

07/16, 2:50 AM

posted by:

Not Gonna Say

So there you have it. The ‘Formulas’ for those 2 giants to remain giants; n to grow even more. I think they should be paying me for this kind of advice rather than listening n paying whoever they’re listening to and paying ‘-D. Seriously though, that’s what has to be done. No alliances, r new CEO’s, r any gimmicks, just do what I said n give the people what they SHOULD giv’em; that’s all!

07/18, 7:35 AM

posted by:

ONEBADASSUSMARINE

Uncle Sam your so full of Bull-s*** GM totally Sucks .
They make World class crap is what they make and nothing but. You can not even begin to compare technologically more advanced and refined products from either Honda or Toyota to a GM piece of crap. Its just that simple.
Also, Ford has been beating the S*** out of General Motors for the past two and a half decades. Unfortunately for Ford Motor….the Ford kids noted Ford’s success got back into management and have negated (at least for the last few years with the exception of the Mustang) the success Ford has made under the leadership of Non-Ancestral leaders like Jack Telnack and Philip Caldwell the man who brought about the car that single handedly beat the crap out of GM the Ford Taurus..and have been screwing it up ever since. . I surmise this. If the Ford brat kids wise up and relinquish their control of the company so as the company can get back on track to beating the crap out of GM once again; then it most certainly it will. If not (they will continue to produce mediocre cars reminiscent of the 1970’s) like the Ford 500 or the Ford CrossTrainer, and soft and unsubstantial changes to the Focus will get them where they were then. No where. But please do not compare your arrogant GM crap to even a Ford let alone go as far as the Imports. As even the messed up Ford model designs that Ford currently has the Quality is at a much higher level than GM.
You know what GM should hang it up. They Suck
And don’t even compare Garbage GM Trucks to any truck on the market please. “Nothing Rusts like a Chevy Truck” Ford Dominates the Truck world. However that will not last for long. As the Toyota Tundra that is coming will kick the **** out of anything produced thus far ok. In terms of technology and performance.
You keep believing your BS and the what the GM camp keeps telling you and don’t worry with your arrogant attitude GM will get eventually what is coming to it Bankruptcy. Absolute power corrupts absolutely. And that’s what GM is their Absolutely Corrupt with BS and those that follow GM are dumber than stink

07/18, 4:46 PM

posted by:

ONEBADASSUSMARINE

Since the WSJ brought up the topic of a proposed merger between Ford Motor and General Motors. I think its only fair based on who the better company is to own the other one. In this case its Ford Motor by a large margin, and basically the reason being GM vehicles sucks so badly they make their way to the junk yard almost immediately after being born off the assembly line. Second, America is tired of General Motors arrogance and stupid followers. So if a merger were to take place between the two; then Ford Motor Co should come out on top as the logical choice to buy out GM and control all of GM’s Divisions. And I think the first business of order would be to kill off all of GM’s worthless junk car divisions it has for profitability. (we’ll have to keep a few isn’t that ashame) I would Kill Off Buick-totally worthless, Kill Off Ponitac Complete piece of crap, Kill GMC its a rebadged Chevy which isn’t saying much. Then the Ford family should relinquish control at the Helm of Ford and bring someone in as a professional CEO that can turn the Business Model around for Ford and its new GM Subsidiary. At that point the Future could’nt be brighter for the American car industry and then its time to tackle the Health Care system problem were having.

 
 
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