Really? GM - Ford

[Pak4now]

This really is hard to wrap my head around. Any thoughts?

https://www.marketwatch.com/story/gm-merger-with-ford-looks-more-likely-2019-05-28

 

[JTee2017]

A GM - Ford merger sounds like a marketing nightmare. Not like a Fiat/Chrysler combo which is a Euro/American brand merger and also different segment blend. GM/Ford have to much in common product wise I would think. How would they sell anything without shooting one or the other brand in the foot . . . especially in the truck segment.

 

[Daisy81]

Why should GM waste a penny buying Ford now? If Ford goes out of business GM can pick at the carcass and get what it wants for less.

Ford is hurting now by their own poor decisions. It’s time for some humble pie from them.

 

[JTee2017]

I'm not so sure that getting rid of so many cars, entry level cars especially, is a wise thing to do. Entry level is where future customers can be cultivated and if gasoline prices soar again or other economic conditions change, I do not think even downsized CUVs are low cost enough to offer products to that market.

There are an awful lot of potential customers in the market that would buy a new smaller car or hatch back type vehicle. Not even all college grads make $90K to $140K. Many plus general labor are in the $40K to $60K income bracket buying used cars. I've heard some young people say that they will likely never own a new vehicle. That speaks a warning in my mind.

Instead of putting all the eggs into electric and CUV/SUV, it would seem wise to still pursue HOW to make small cars in a profitable way. Case in point is the Cruze which was successful. It is interesting that Kia, Mazda, Hyundai, Honda and some others can make and sell small cars. Plus, GM makes models already in Korea (like the import brands) as well as Mexico. Curious why GM can not figure a way to make small cars in the same manner in outsourced locations.

VW markets the Golf for a pretty hefty price. Why can not Ford and GM garner the same type of interest?

 

[LorbeerTLC]

GM Merger with Ford? Look back to 2008. Won't Happen.

A merger between GM and Ford? You'd probably have better luck in winning the lottery! I've read stories on GM going to Ford just before filing for bankruptcy and things got really nasty! I wish I could find the book I read that said just how bad things at GM really were financially. And when GM finally made the call to Ford, GM acted as if they were doing Ford a favor even though Ford wasn't the one asking for a Government bailout.

During the brief talks with Ford, GM wanted to be in the driver's seat even though it was GM who was asking for help! -ouch!- You can imagine Ford's reaction *showing GM the door*

I couldn't find the article, but one from the Huffpost comes pretty close. I think things would have to be pretty dire before any kind of merger would be proposed.
Huffpost: Once Upon A Car

Added: Here's the article I saw...
https://www.nytimes.com/2011/10/02/business/once-upon-a-car-on-the-road-to-detroits-big-pileup.html?_r=1&hp

 

[JTee2017]

GM acted as if they were doing Ford a favor even though Ford wasn't the one asking for a Government bailout.
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Except, Ford also asked and took money from the government. . . . just later in early 2009.
Ford did receive government loans. These were critical because banks were not lending during the financial crisis. It requested a $9 billion line-of-credit from the government.
GM paid the money back and the Government also sold the stock it absorbed from GM. And George W. Bush arranged the deal before he left office in December of 2008.
Had not a loan been made to GM, taxpayers would be on the hook via the PBGC for the lost pensions and +70,000 people out of work to boot. It would have bankrupted more than just GM.

https://www.politico.com/story/2008/12/bush-announces-174-billion-auto-bailout-016740