DETROIT Sep 18, 2006 (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.

As the two biggest U.S. automakers, any deal would presumably face scrutiny by U.S. antitrust regulators.

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 Oscar Suris, also speaking before business hours, said: "We're not commenting on speculation."

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.



Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

Not gona happen.

 

^^^^ i second that

 

never !!!

 

i hope it doesn't

 

Ford, GM toy with merger talks, report says
Sources familiar say talks are not currently ongoing and may not be fruitful, paper reports.
September 18 2006: 11:39 AM EDT


CHICAGO (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 was not clear whether the negotiations will bear fruit.


Quick VoteWould a GM-Ford alliance help the troubled automakers?
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As of now, the two companies, both struggling with shrinking market shares while restructuring operations, are not holding talks, and one source said there is a slim chance that anything will come of the situation, Automotive News said.

GM and Ford declined to confirm any talks.

Shares of GM (down $0.25 to $31.41, Charts) fell less than 1 percent while shares of Ford (down $0.21 to $7.81, Charts) dropped nearly 3 percent during morning trade on the New York Stock Exchange.

"As we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Brian Akre said.

"As a policy, we do not confirm or comment publicly on those private discussions, which in many cases never lead anywhere." Ford spokesman Tom Hoyt said, adding the automaker does not comment on speculation.

Friday, Ford said it would slash $5 billion in costs and one-third of its work force as it warned its auto business would not make a profit in North America for another three years.

It also suspended its dividend and pledged to revamp a vehicle line-up seen as weak by analysts.

Disappointed investors
However, the No. 2 U.S. automaker ruled out an immediate sale of its Jaguar brand, disappointing investors who wanted Ford to press ahead with asset sales to raise cash, sending shares to their biggest single-day percentage decline in almost four years.

Earlier this month, Ford named Alan Mulally, a former Boeing Co. (up $0.37 to $75.38, Charts) executive, as chief executive, ending the troubled five-year stint of Bill Ford Jr. as the company's operational head.

GM is in the midst of its own restructuring as it tries to recover from a $10.6 billion loss in 2005.

Turnaround efforts at the world's largest automaker have gained traction this year as 34,400 workers - about a third of its work force - have accepted early retirement and buyout offers. GM is also closing 12 plants.

Still, CEO Rick Wagoner is under pressure to show further improvement as GM studies a possible tie-up with Nissan Motor Co. Ltd. (up $0.05 to $22.49, Charts) and Renault SA (down $1.97 to $113.60, Charts) in which Nissan and Renault could buy up to a 20 percent stake in GM.

That deal, urged by GM's largest individual shareholder, billionaire investor Kirk Kerkorian, has been widely viewed as a means of prodding Wagoner to speed up the company's turnaround efforts.

Last year, GM and Ford agreed to jointly develop a new 6-speed transmission, which is in production in plants at both companies.

Shares of rival automaker Daimler Chrysler (Charts) edged higher Friday after it said it would cut U.S. production through the end of 2006. Toyota (Charts) shares were slightly lower.

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Why Ford is in worse shape than GM

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I got that off CNN.. Man it would suck I think that its if it happens.

 

Awesome !!!! Im gonna get me a Camaro GT with the 4.6 or maybe even the Mustang SS with the 6.0

 

It would be interesting if it happened, but I don't think it will. There's a Big 3 in everything. Fast Food Burgers (Mcdonald's, Wendy's, Burger King); American Auto Makers (General Motors, Ford, Daimler-Chrysler); Foreign Auto Makers (Honda, Toyota, Nissan); Soda Pop (Pepsi, Coca-Cola, 7 Up); Computers (Microsoft, IBM, Dell); Music (Rock n Roll, Country, Hip-Hop); Sports (Football, Basketball, Baseball). Yeah there's little companys competing against the "Big 3", but there will always be a Big 3 in the business world.

I just don't see this happening.

 

lol,......God this is a scary thread! Just the thought freaks me out enough.

 

i posted this , this morning in the general auto thread as soon as it broke on opening bell on msnbc...this would be horriable imo

 

There is no way this could happen. At least I don't think so...

 

no #$%^in way..

 

GM just turned Nissan-Renault away, I really don't see this happening either esp from insider reports the Nissan deal was sweeter.

I mean I think its drastic times for GM, and honestly I don't have faith in them making it alone as is, either a massive change merger or doom is all I can see from them, not like any of these will be instant or anytime very soon.

Hopfully in all honestly the goverment will not give some wild help at our *tax payer* expense like they did with the airlines. I hoestly think it hurt everyone more then helped and if they do so for the car makers same thing will happen.

For me I hold no loyatly if when a product/company is slipping. GM is trying but they are being one upped.

Toyota is closing in on them as the #1 sales for autos in the US THEY DONT OFFER A SPORTS CAR. With the rumor flying the supra will come back same time as camaro, or one year after and toyota joining nascar.

Things just don't look good for GM, they need help a merger might be it it might not but honestly I rather see GM merge with Ford then a over seas company.

 

I sure hope not, but if they do we could get a factory ls based motor with a supercharger, or a damn N/A worthless 4.6

 

i hope not ford s-cks

 

It could happen. These guys already share transmissions (6 speeds).

 

I see it as being the joining of "good and evil" if it happens!....i'll let you figure which is which! GM will turn around I hope...its just a matter of time...lol, maybe another few years...Quality has to improve and they have to KEEP focussing on R&D.

 

More of these kinds of things would be good for both parties, but a merger would NEVER pass antitrust... and probably wouldn't help much.