The nation’s two largest automakers, Ford and General Motors have reportedly discussed an alliance or merger. Trade journal Automotive News, citing sources familiar with the talks, said discussions began in July, but they are not taking place as of now. A source also said there’s a “slim chance” that anything will come of the talks.
Both companies reportedly declined comment on the story.
Ford and GM are each seeking to revitalize their struggling North American operations, which have been hurt by rising gas prices and intense competition from overseas automakers.
GM is in talks for a potential alliance with Nissan and Renault, which are both run by Carlos Ghosn. The Wall Street Journal reported that Ford also reached out to Ghosn seeking alliance discussions should the GM talks fall through.
Shares of Ford, which on Friday set a broad cost-cutting plan to accelerate its turnaround, recently were down 4 cents to $7.98. GM shares were down 2 cents to $31.64.
Original story from www.thestreet.com
Don’t forget, GMs LS engines also have a huge advantage in displacement. The LS7 is 428 (427.5) while Ford’s biggest is 330 (which is in the Shelby). Then again, the NA engine in the 00 Cobra R out performed Chevy’s LS6 w/ 20ci less. In design, Ford’s modular engines are the most efficiant however, they lack a great cylinder head, besides the 4V (the stock 5.7 Hemi heads flow better than most aftermarket Chevy heads and any version of Ford’s modular 2V heads, for example).
By bassman97. September 19th, 2006 at 5:39 amWell, if it happens, maybe the Mustang will finally get a decent motor in it. The LS series motor that GM has are nothing short of awesome. I mean, 500 HP naturally aspirated in the ‘Vette? Ford needs a blower to come up with numbers like that in the Shelby. Now maybe an LS7 with the blower…
By Joe. September 18th, 2006 at 8:32 pmAn actual “merger” will never occur and has nothing to do with what our government would or would not allow. Both GM and Ford know that competition is good for the business. But they’ve been working together, to one degree or another, for years. An older example would be your 65-73 Mustang, which won’t even leave
By Larry. September 18th, 2006 at 7:24 pmthe driveway without the Saginaw steering division. Another case is the new 6 speed automatic trans, which is a collaboration between GM & Ford. Ever heard of LOF glass? That’s the Libbey Owens Ford facility, which provided glass to several GM divisions, including Oldsmobile all they way up till 2004. There’s lots of
other examples out there, but there will never be a
GM/Ford Corporation.
The merger would never happen beacuse it would be considered a monoply to US lawmakers (unless their market share declines drastically). However, seeking an alliance with Renault isn’t the solution either. The problem is very simple: the US auto makers have gotten out of touch of their customer base. In addition, their ads aren’t the best either. What needs to be done is a shift in direction. Also, it needs to be realized that the average consumer doesn’t mind paying extra for American made if the quaility is there to back it up (most Jap cars cost more than US cars).
By bassman97. September 18th, 2006 at 11:48 am