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Report of GM-Ford merger talks sign of times, analysts say

DETROIT - 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 on the report.

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 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.

In pre-market trading, GM shares rose 4 cents to $31.70 while Ford shares rose 2 cents to $8.04.

Citing several sources familiar with the talks, the paper said it is not clear whether the negotiations will bear fruit.

As of now, the two companies are not holding talks, and one source says there is a slim chance that anything will come of the situation, Automotive News said.

GM and Ford were not immediately available for comment
 

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:seeya:

Report of GM-Ford merger talks sign of times, analysts say

DETROIT - 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 on the report.

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 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.

In pre-market trading, GM shares rose 4 cents to $31.70 while Ford shares rose 2 cents to $8.04.

Citing several sources familiar with the talks, the paper said it is not clear whether the negotiations will bear fruit.

As of now, the two companies are not holding talks, and one source says there is a slim chance that anything will come of the situation, Automotive News said.

GM and Ford were not immediately available for comment

Nothing good will become of this merger, no way in hell! Thousands of people will lose their jobs. I dont see it happening and nor should it. Go away Ford!
 

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From what I've heard GM and Ford are very serious about forming an alliance.... just not with each other. GM is looking at the Renault-Nissan alliance and it still has wind in the sails. Ford has been in on and off discussions with Honda.

IMO a Ford and GM merger would be nothing but bad for the US and for both companies.
 

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Oh no!

Please say it aint so!

GM is finally beginning to put out some decent quality product that can compete in the marketplace without apologies (incentives).

Ford NA has a portfolio of products that is weighted too heavily towards trucks. Trucks and SUV's are in a down cycle right now. Fords cars and crossovers are using outdated technology and pathetically poor interior design and materials. Ford hasn't left the 80's yet.

I can see Ford benefitting from a merger but it would be another stone around GM's neck.

Now Nissan and Renault on the other hand.....both have great engine technologies that GM lacks. Nissan V6 and Renault small diesels. Renault is also building some great small cars in Europe. Don't laugh, it's not the same Renault that got it's butt kicked out of the US years ago.

I can't believe GM would make this mistake.
 

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My parents taught me:

"Two wrongs don't make a right!"

Both these companies need to align themselves with other successful companies if they plan a merger of any type! What can they learn from each other??? How to go down together???
 

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Looks like both companies intend on going it alone. All the momentum is gone from the Nissan/Renault/GM talks while Ford's UAW buyout's a pretty clear signal that it's intending to stay solo.

What's amazing about this is that GM as a whole is doing fine in Europe and growing like crazy in Asia, especially China. It's just that their NA sales are in the toilet while their legacy UAW commitments are dragging them down.

Ford, while not quite as strong globally, has some OK operations in Europe. Legacy costs and a gas guzzling fleet that nobody wants to buy are hurting them in NA -- while Nasser's idiotic acquistions of Land Rover, Jaguar, Aston Martin and Volvo have been nothing but a money pit. Don't get me wrong, there are some good cars in there -- but their sales aren't anywhere close to justifying how much was spent to acquire and develop them.

There's a reason why Ford's product line, like the Focus, are ancient and taking years to get refreshed -- it's because all the money they made on SUV's in the 90's got blown on crap like Jaguar's F1 team, etc. So instead of making capital investments that could be yielding profits now -- they blew it all and have nothing to show for it.
 

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GM has enough problems, it doesn't need Ford's even worse managment and financial situation to mess it up. At least GM can make good vehicles.
 
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