Gojirra99

Report: Combined GM, Ford Would Emerge Stronger
Wall Street Journal Offers Own Solution To America's Auto Problem

POSTED: 6:53 pm EDT July 17, 2006

After two weeks of contemplating an alliance between General Motors, Renault and Nissan, the companies paused for 90 days to consider their futures.

The Wall Street Journal has offered its own solution to America's auto problem by combining the "big two" and creating the "big one," according to Local 4 business editor Rod Meloni.

"Now is the time for their conservative minds to consider something truly transformational: a merger of General Motors and Ford Motor," the paper reported.

On the upside, the Journal said a combined Ford and GM would emerge stronger and more able to attack both sets of legacy costs. Together they will attain a staggering 40 percent of North American market share, Local 4 reported.

And by cutting brands such as Buick, Pontiac and Mercury, it will allow the major company to focus on better-selling brands, the station reported.

However, there is an admitted downside: a possible United Auto Workers union strike in opposition and the costs associated with buying out dealers and the lawsuits that would invariably accompany closing dealerships, Local 4 reported.

UAW President Ron Gettelfinger himself seemed taken aback by the idea.

"As you know any merger is a very complex deal, takes a lot of work and a lot of effort. I hadn't even thought about it and it's the first I've heard about it," said Gettelfinger.

"This is one of those instances where 1 plus 1 equals 1.2."

AMCI auto analyst Jim Sanfilippo said this is the kind of idea generated by people who neither drive cars nor pay attention to the business.

"Gee why doesn't the last-place team buy a couple of Yankees and everything would be fine. It's just not a realistic scenario," said Sanfilippo.

Sanfilippo said the only true way for the American auto industry to survive and prosper is for American leadership to step up, roll up its sleeves and solve the problems in their executives' suite and on their own plant floors, and not look outside for help.

source : clickondetroit.com

mmarshall

While I know it is an auto brand that not many CL members would buy, I don't think that cutting Buick would be a good idea. That division absorbed many of the customers that formerly shopped at Oldsmobile. They really would have no place to go....especially if Mercury is also cut in the merger.
If GM is going to cut anybody, IMO it should be GMC trucks. All they are are identically rebadged Chevy trucks with a different grille. GMC trucks, right now, is probably the biggest waste of a division in the industry.

Saturn also needs DRASTIC changes...it is slowly being ruined. They BADLY need to go BACK to what they did so well 10 years ago...specializing in well-made small cars with PLASTIC ( not metal ) bodies and unique Saturn engines / transmissions and things like the nice spin-off transmission filters. The Ion, in many ways, is a piece of junk, and most of the other Saturns have become little else than rebadged GM / Opel products with metal bodies instead of plastic.
Even the nice Saturn Sky roadster, despite its different front-end-styling, is just a rebadged Pontiac Solstice.

-J-P-L-

Imagine what it would take to combine these two companies?

That would **** a lot of people off too. Chevy and Ford the same company?

That's like merging the Yankees with the Red Sox.

DaveGS4

iTrader: (2)

Adding water to mud makes more mud.

Trexus

They could be called GMF (Great ***** ******) or FGM I won't go there...

mmarshall

Good point. Mustang and Camaro jocks couldn't have their Friday night drag races anymore.