Ford and GM to Merge......Not out of the question

[Ktp1989]

http://articles.news.aol.com/business/_a/f...9990001?cid=403

[ehaase]

http://www.autonews.com/apps/pbcs.dll/arti.../309180001/1128

 

BEST OF EDWARD LAPHAM

 

Ed called it 17 days ago

9/1/2006 column: Coming soon: The hookup of the century!

 

 

Edward Lapham | |

 

Automotive News | 6:00 am, September 18, 2006

 

 

 

 

Ford and GM sittin' in a tree, K-I-S-S-I-N-G.

 

Yuck! Ptooey!

 

I know that may sound like an unnatural act. But sooner or later -- probably sooner -- General Motors and Ford will need to consider hooking up.

 

It would be more like an arranged marriage than a passionate liaison. And for a while, it may seem like two drunks trying to hold each other up as they stumble out of a Las Vegas wedding chapel.

 

But, face it, all the wooing and petting with charming suitors from faraway lands won't amount to much more than a summer romance; nor should they if they aren't in the best interests of all stakeholders.

 

An alliance would allow GM and Ford to stop beating each other bloody in North America and would create a powerhouse that could compete from a position of strength globally by sharing components, innovations and resources.

 

Of course, as with any marriage, there will be issues.

 

The old fear about creating a leviathan that will dominate the market doesn't loom as large anymore, given the strength of automakers from overseas that establish most of the price points. Between them, Ford and GM control less than 45 percent of the U.S. market.

 

Yes, there would be way too many brands. Whenever you combine households, you need to dispose of stuff.

 

Of course, you'd start by selling Aston Martin, Jaguar, Land Rover and probably Volvo rather than Saab because Saab shares more with other GM brands than Volvo does with Ford brands.

 

In the rest of the world, you ought to be able to look for ways to share platforms and reduce costs without major changes to the brand lineup.

 

But in North America, you'd want to ditch some or all of Lincoln, Mercury, Buick and Pontiac. That leaves the Ford vs. Chevy puzzle.

 

One solution would be to let Ford be the rock-ribbed, all-American brand and move Chevy downmarket to compete with the entry-level Korean and Chinese brands with Daewoo-based vehicles, hopefully built in North American factories. After all, that is the way the Chevy brand is heading in Europe and Asia.

 

There will need to be big-time buy-in from the stakeholders, especially the UAW.

 

There also may need to be federal legislation that makes it easier to do what needs to be done. But that shouldn't be a problem if the Democrats capture control of Congress in November.

 

The tricky part could be getting President Bush to sign the bill. But jawboning by Rep. Donald Manzullo, R-Ill., might convince him that it's a matter of national security.

 

Why? Manzullo chairs the House Committee on Small Business, which issued a 25-page report in March linking the need to protect the traditional auto supply base in the United States with maintaining the defense industry's supply base because the two overlap.

 

I can almost hear the logic of it now:

 

We need to keep our defense suppliers strong, Mr. President, so we can fight the war on terror. What more logical way to protect the defense industry's supply base against outsourcing or a foreign takeover than to make sure U.S. automakers remain strong and free?

 

Still don't like the idea of a GM-Ford alliance?

 

OK, it's not ideal. But merging two domestic competitors isn't a new idea.

 

Don't forget that Chrysler Corp. bought American Motors -- which was itself a consolidation of feeble U.S. companies -- before Daimler-Benz grabbed Chrysler. In France, Peugeot and Citroen formed PSA. In Korea, Hyundai got Kia. In Germany, Porsche owns about a quarter of the Volkswagen group and its various brands.

 

Sometimes, hooking up domestic competitors is just doing what comes naturally.

 

You may e-mail Edward Lapham at elapham@crain.com

[Raws41900]

http://articles.news.aol.com/business/_a/f...9990001?cid=403

 

that would be nuts..

[F150MANBDV]

NOT GOING TO HAPPEN.

ALREADY BEEN REPORTED ON CNBC AS ANY CHANCE BEING DROPPED.

FORGET IT.

Time to get off this crazy merry-go-round....

[Raws41900]

NOT GOING TO HAPPEN.

ALREADY BEEN REPORTED ON CNBC AS ANY CHANCE BEING DROPPED.

FORGET IT.

Time to get off this crazy merry-go-round....

 

like the topic said, not out of the question. it could happen.

[end of time]

like the topic said, not out of the question. it could happen.

What would be the point? The problem with both companies are plain and simple. poor MANAGEMENT. NO LEADERSHIP. Both companies have the best employees in the world, but without proper leadership the ships in trouble. I was very disappointed in BILL JR. I really thought he would stand up and take charge. High quality and low cost are a given in any business, quit re-thinking the basics. Design, is where its at. Americans want it all, so give it to them. quit beating around the bush. :bandance: :bandance: :happy feet: :happy feet:

[bravestar]

How many stupid and meaningless reports are we going to get about the big 2? Who in there right mind would think that they would merge and that it would pass antitrust regulations? This is another example of why GM and Ford have almost an impossible battle to recapture the buyers they lost when they did not have competitive products. Do journalist and analyst enjoy trying to eliminate the only two remaining American automobile companies? This is a shame, I can see joint development on subsystems but merger?

[dukka]

Misery loves company!

 

What would be the point? The problem with both companies are plain and simple. poor MANAGEMENT. NO LEADERSHIP. Both companies have the best employees in the world, but without proper leadership the ships in trouble. I was very disappointed in BILL JR. I really thought he would stand up and take charge. High quality and low cost are a given in any business, quit re-thinking the basics. Design, is where its at. Americans want it all, so give it to them. quit beating around the bush. :bandance: :bandance: :happy feet: :happy feet:

 

Poor management and a shitty union.

[Footballfan]

Aside from the F-series and Mustang, what would GM possibly want from Ford? A dying Lincoln and Mercury brand? GM is competitive with the F-series, and the Camaro will put a dent in Mustang's sales. Ford would be a better fit for Toyota. Toyota would have true leadership with their trucks, and they would have a uniquely American brand with Ford.

[Ktp1989]

Aside from the F-series and Mustang, what would GM possibly want from Ford? A dying Lincoln and Mercury brand? GM is competitive with the F-series, and the Camaro will put a dent in Mustang's sales. Ford would be a better fit for Toyota. Toyota would have true leadership with their trucks, and they would have a uniquely American brand with Ford.

With Ford, you never know :shrug: