It’s no secret that the domestic automakers are facing one of the roughest stretches in industry’s long history, but the situation could be even direr than it looks from the outside. Here’s the proof: General Motors executive have brought up the idea of merging with Ford during recent meetings.
Although the proposal never gained much traction within GM – according to Business Week — the fact that execs brought up the topic shows the domestic automaker are scrambling to find answers to their financial problems.
Though a merger is unlikely, the idea is not unheard of in the Motor City. Ford nearly teamed with Italy’s Fiat and GM has toyed with the idea of a tie-up with both Chrysler and Nissan. Ford and GM have also reportedly met in the past to discuss a possible merger, although nothing came of it.
The idea of a GM-Ford merger is obviously a complex proposition that would have both its pros and cons. A tie-up would create a company with $350 billion in annual revenue and the savings from overlapped overhead costs would save the company billions.
However, because of the financial states of both companies, a merge could have the same effect as tying two sinking ships together, only leaving a bigger mess to clean up. The other huge con standing in the way of a merger is the enormous product overlap that would be the result, not to mention the 12 different brands that would fall under one corporate umbrella.
06/25, 1:53 PM
posted by:
renzogtr
or this could be the first step to the end…..
06/25, 2:00 PM
posted by:
injunraiv
LOL “direr”?
06/25, 2:01 PM
posted by:
injunraiv
“Though a merger is unlikely, the idea is not unheard of in the Motor City” so why is this even on this website? Is there a
news’ story here, or are we reduced to reporting the latest rumors again?
06/25, 2:07 PM
posted by:
Scarface03
How the hell would you sort out those brands? Maybe… just maybe you could with a lot of work, luxury vs. near-luxury, fwd vs. rwd, streamline CUV offerings, etc. But how do stay competitive against imports and Chrysler and NOT cut into your own GM vs. Ford sales?
On the other hand, overhead has been one of the downfalls of U.S. car industry. Conslidating debt, laying off workers (sad, but inevitable), closing underutilized plants, economies of scale with R&D and production. If Ford or GM starts sinking faster than the other, that maybe the time to revisit this story….
06/25, 2:20 PM
posted by:
Need4SSpeed
OK PEOPLE! Don’t get your panties all up in a bunch. We’ve seen this happen time and time again and it hasn’t happenned. There were talks of this all over the news back in the late 90’s, didn’t happen. Then there were talks about this back when Renault/Nissan were considereing merging with either Ford or GM. Didn’t happen. The execs can talk all they want, and I for one still don’t see this happening.
06/25, 2:21 PM
posted by:
Need4SSpeed
Oh and just like GM was considering buying Chrysler. Didn’t happen.
06/25, 2:22 PM
posted by:
golf4me
Just doing something with the dealer body would be too costly to make this a reality. Just think how many towns have a Ford and Chevy dealership, and one of them has got to go, and whichever one is going to sue the pants off someone…
Plus, the union would block it too, as there would be a LOT of plants that would eventually be idled.
I can see that they’d work on powertrains and other major components together, but that’s about it I think. They already did that 6sp FWD tranny together I think.
06/25, 2:23 PM
posted by:
kitko
To put it into perspective.
Do you know how much are GM and Ford worth at the moment?
John Dvorak of PC Magazine recently wrote:
“Earth to Microsoft: Yahoo! is not worth $44 billion. You could buy General Motors lock, stock, and barrel for $14 billion, name all the cars “Google Sucks,” and get more bang for the buck. Heck, you’d have enough left over to buy Ford for around $16 billion, and you could name all those cars “Google Sucks More” and still have $14 billion left over for a big party.”
http://www.pcmag.com/article2/0,2817,2293341,00.asp
06/25, 2:23 PM
posted by:
HemiRoadRunner
Are you kidding me? They don’t know how to solve their financial problems? Maybe if they came out with NEW IDEAS they would be ok. These NEW IDEAS include: ALTERNATIVE FUEL CARS and MORE FUEL EFFICIENT CARS. Maybe if they also came out with the cars they keep talking about, like the Camaro and Volt, they would be selling. Get off your lazy @$$’s and build some NEW IDEAS. They don’t have to build just fuel efficient cars, they can build muscle cars and trucks also, but at least diversify your line-up and offer something NEW. I hope GM and Ford is reading this so they get my subliminal messages.
06/25, 2:23 PM
posted by:
murderedout
“A tie-up would create a company with $350 billion in annual revenue”
THAT’S MORE THAN A FEW STATES GDP IN AMERICA COMBINED!!!
06/25, 2:27 PM
posted by:
murderedout
Just rumors as usual. This merger will never happen, I guarentee it! Put it on the front page, back page, middle page, column 1 or 2, they will not merge. You can quote me on that too!
06/25, 2:27 PM
posted by:
xyunya
2 nut houses will make first class mental institution.
06/25, 2:33 PM
posted by:
HemiRoadRunner
^^^^ Who are you, confuscious?
06/25, 2:39 PM
posted by:
bigp
hell no because ford could live with out them ..they are half way there to look back now..
06/25, 2:42 PM
posted by:
howsmydriving
The lesson to be learned is that government should never step in to save an ailing company. Jimmy Carter bailed out Chrysler when he should have let it die. Without Chrysler around, GM and Ford would be that much stronger today.
06/25, 2:44 PM
posted by:
johnnycanuck
While we’re at it, let’s also merge the US, Canada and Mexico. Hell, that’d probably be the easier of the two.
06/25, 3:01 PM
posted by:
bolex
would it be called “fords general motors” or “general ford motors”?
06/25, 3:07 PM
posted by:
bolex
its a great idea. that would be…ford lincoln mercury chevy pontiac saturn hummer cadillac buick gmc saab. and after they merge they can split the teams in half! and still get beat by honda! this is ridiculous..
06/25, 3:11 PM
posted by:
xyunya
johnnycanuck, I think we should let Mexico to stay in private hands
bolex, the new company “General Hummer Ford” or simply GHF
06/25, 3:13 PM
posted by:
kitko
Bolex, what about General Ford
06/25, 3:19 PM
posted by:
beantownslut
We do not need that lousy company.
@HemiRoadRunner
I don’t have $14 billion
@howsmydriving
Let Chrysler, GM and Toyota all die. We can let Honda and the German companies live, so we don’t get accused of being a monopoly. We’ll just be the Red, Blue and green sets.
@ johnnycanuck
Let’s The US and Canada. Mexico can link up with the rest of that crap down south.
06/25, 3:20 PM
posted by:
400horseSS
Sounds good to me, it’ll make my horrible ass GM stock shoot up, seeing thats all these 2 companies care about anyway.
06/25, 3:34 PM
posted by:
HemiRoadRunner
400SS, I know your the only original GM gangsta on this mofo. Are you back to work? I was in Wentzville the other day, well about a month ago, well ST Louis, but I drove the rental out there to check it out, I rememeber you mentioned working there, pretty cool looking place.
06/25, 3:36 PM
posted by:
ktulu
Do it!
Kill Saturn, Mercury … al of ‘um ‘cept Ford, Caddy & Chevrolet. Ford is the nu Pontiac.
06/25, 3:53 PM
posted by:
sharpie
Is this story an attempt to influence stock prices?
06/25, 4:26 PM
posted by:
1c3d0g
Jesus Christ…such a combined company would be a monster to be reckoned with. Hell would freeze over before this happens, but then again, stranger things have happened. I would be extremely impressed if something of this magnitude would take place…
06/25, 4:57 PM
posted by:
Z06ified
Not gonna happen. Mergers cost money to execute – money neither have the luxury of spending right now. And the fact is they can both survive independently.
06/25, 5:30 PM
posted by:
xyunya
I don’t know who will survive independently, or better put for how long. Together they have even less of a chance or a shorter life span. GM lost a golden opportunity to partner with Renault/Nissan. I doubt that Ford will even have such an option. Two sickos don’t make one healthy and wealthy.
06/25, 5:37 PM
posted by:
injunraiv
LOL, not to try to call him out, but I’m really surprised 1115 hasn’t chimed in yet. Then again, maybe he read this and his head exploded! (We can only hope…)
06/25, 5:38 PM
posted by:
400horseSS
Been at work for about a month Hemi, working 10hrs and more OT in bodyshop, good thing is friday is our last day due to model change, maybe just maybe maintenance fat asses can fix **** the 2 weeks were off.
06/25, 7:08 PM
posted by:
tripleonefive
This merger would be a joke Both companies make crap and it would just mean crap squared for the small customer base lol
They can merge purge or surge they still couldnt beat Toyota or Honda or even Hyundai at this point lol
Im on your mind all day huh there inj
06/26, 8:20 AM
posted by:
injunraiv
Only when I’m wondering what the dumbest post of the thread will be…
F R E E that spells free…
06/26, 8:40 AM
posted by:
jdasch1
Dumb idea .
06/26, 10:51 AM
posted by:
tripleonefive
LOL The rule is when you arent supposed to run a joke into the ground…slos the joke has to be funny in the first place
How many G5’s did you sell this week lol
You kick the tires and the car falls apart lol
Anyway GM and Ford both suck and make unreliable crap and you sell that crap so you suck just like they do
…A grown man selling Pontiacs lol
06/26, 1:08 PM
posted by:
injunraiv
I’ve been out of G5s for about a week now, thanks for asking…
06/27, 3:11 PM
posted by:
lamboz get a life
At least he has a job you little fat living with Mommy triplefagboy. Selling magazines door to door is about the most trying job you could handle you uneducated trailer park junkie.
…A grown man living with his Mommy lol
06/27, 3:20 PM
posted by:
tripleonefive
…A grown man living with his Mommy lol
I told you I kicked your mommy out
A grown man who is obsessed with another poster on this board so much he takes his name lol