GM and Ford Merger In The Works?
#1
GM and Ford Merger In The Works?
"According to BusinessWeek, a senior General Motors Corp. (NYSE: GM) recently tossed an idea to the troubled automaker: Consider a merger with rival Ford Motor Co. (NYSE: F).
The idea, which the magazine says was shot down at a GM meeting, underscores the problems facing the two American auto icons as consumers pinched by high gas prices dump their SUVs and pick-up trucks in favor of smaller cars. The swiftness of that transition caught just about every auto manufacturer off guard, although Toyota Motor Corp. (NYSE: TM) was better prepared with its lineup of smaller, more fuel-efficient vehicles.
A possible deal would be a large distraction into both companies while doubling the amount of problems a combined auto colossus would face. A long-term combination may have indeed proved quite fruitful, but are both companies seriously ready to have their empires combined? Maybe in 2013, okay?
Financially, if the deal makes sense for the long term, look for this rumor to surface again in the near future. Combining the incredibly high overhead and capability to weather fickle customer preferences in vehicles would never be a bad thing. right now, the timing is bad but it could be better in reach of five years. Is the U.S. ready for a single, publicly-held American auto manufacturer? I'm not sure, and there would be mountains of convincing to do if a merger ever comes up again. My bet is it will." ***
*** Full Story Quoted from AOL News
The idea, which the magazine says was shot down at a GM meeting, underscores the problems facing the two American auto icons as consumers pinched by high gas prices dump their SUVs and pick-up trucks in favor of smaller cars. The swiftness of that transition caught just about every auto manufacturer off guard, although Toyota Motor Corp. (NYSE: TM) was better prepared with its lineup of smaller, more fuel-efficient vehicles.
A possible deal would be a large distraction into both companies while doubling the amount of problems a combined auto colossus would face. A long-term combination may have indeed proved quite fruitful, but are both companies seriously ready to have their empires combined? Maybe in 2013, okay?
Financially, if the deal makes sense for the long term, look for this rumor to surface again in the near future. Combining the incredibly high overhead and capability to weather fickle customer preferences in vehicles would never be a bad thing. right now, the timing is bad but it could be better in reach of five years. Is the U.S. ready for a single, publicly-held American auto manufacturer? I'm not sure, and there would be mountains of convincing to do if a merger ever comes up again. My bet is it will." ***
*** Full Story Quoted from AOL News
#5
RE: GM and Ford Merger In The Works?
Geez I hope not.
They need to fix their own problems.
Combining a sinking ship with another ship that's taking on water just creates one boat that sinks even faster.
They need to fix their own problems.
Combining a sinking ship with another ship that's taking on water just creates one boat that sinks even faster.
#9
RE: GM and Ford Merger In The Works?
That's another issue I thought of too.
Obviously, some models would have to disappear.
The Mustang being Ford's only regular production true muscle car, it would obviously remain in the line-up. But which GM muscle car would be cut in favor of the 'stang?
Would they drop the Camaro yet again? Or keep the better selling Camaro, and drop the Corvette?
What about Cadillac and Lincoln? Which one stays, and which one goes?
What of other models? It would certainly end all hopes of a potential return of the Monte Carlo.
Ford simply doesn't have as many models as GM. So there would be a push to keep as many Ford models as possible. This would mean the end of many GM models.
Or would they operate similar to what Chrysler did a few years ago? Passenger cars go under the "Chrysler" name, trucks under the "Dodge" name, luxury cars were left to Mercedes, etc...
Would a combined GM and Ford operate the same way? Trucks under the "Ford" name, cars under the "Chevy" name?
Now there's rumors in the news of Chrysler being close to bankruptcy again. The report I saw, showed that Jeep was the only division to make money. All other Chrysler divisions lost money.
So...... what now?
Obviously, some models would have to disappear.
The Mustang being Ford's only regular production true muscle car, it would obviously remain in the line-up. But which GM muscle car would be cut in favor of the 'stang?
Would they drop the Camaro yet again? Or keep the better selling Camaro, and drop the Corvette?
What about Cadillac and Lincoln? Which one stays, and which one goes?
What of other models? It would certainly end all hopes of a potential return of the Monte Carlo.
Ford simply doesn't have as many models as GM. So there would be a push to keep as many Ford models as possible. This would mean the end of many GM models.
Or would they operate similar to what Chrysler did a few years ago? Passenger cars go under the "Chrysler" name, trucks under the "Dodge" name, luxury cars were left to Mercedes, etc...
Would a combined GM and Ford operate the same way? Trucks under the "Ford" name, cars under the "Chevy" name?
Now there's rumors in the news of Chrysler being close to bankruptcy again. The report I saw, showed that Jeep was the only division to make money. All other Chrysler divisions lost money.
So...... what now?
#10
RE: GM and Ford Merger In The Works?
ORIGINAL: RickCoMatic
I don't know if I'll order the Cobra Camaro
I don't know if I'll order the Cobra Camaro
(singing to the tune of "Copa Cabana") "I'd buy the Cobra.......Cobra Camaro. The other choice was a 'stang.......It's a lot more hype than bang. This song is stuck in your head. You'll hear it while you're in your bed. And it's all my fault. Buy the Cobra.........Cobra Camaro."
Get that song out of your head! You have the Copa Cabana song stuck in your head now. Admit it!