Ford and GM ponder mega-merger? (UPDATED)
Newswheel staff :: 18 September 2006 :: Filed under Ford, GM, US
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Let’s face the music…
The hard evidence remains to slim to none. But according to the usually
reliable industry bible that is Automotive News, the possibility of the
mother of all automotive mergers has been discussed by senior company
executives. Yup, Ford and GM could be doing the tango…
The great subject was allegedly broached during a pow-wow between GM’s
CFO, Fritz Henderson and his opposite number at Ford, Don Leclair.
Apparently, part of the rationale for the deal is a fear that the
failure of either Ford or GM would have dire consequences for the other
– the two companies share many mutual parts suppliers, and the knock on
effect of a bankruptcy on the wider industry could be catastrophic.
Of course, even if true, the fact that GM and Ford have discussed an
alliance is really only evidence that both companies are considering
all the available options. And this is just the latest in an extremely
long list of rumours regarding the future of both GM and Ford.
The greater minds at US financial rag The Wall Street Journal have doused the flames of this particular inflammatory rumour. According to the WSJ, "General Motors Corp. and Ford Motor Co. briefly discussed the concept of an alliance between the two auto makers but have dropped the idea and plan no further talks, two people familiar with the matter said on Monday."
Linkage:
Automotive News (sub required)
Wall Street Journal (sub required)
Posted 17 January 2007, by lemilia.l
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