Yes folks, it's Ford-GM merger rumor time again! This time, Business Week reports that GM execs recently mused aloud about the prospects of a merger with FoMoCo. According to "sources briefed on one of the meetings," the idea never made it past the "banter" stage. Dismissing mental images of executives "bantering" while their company burns, it's obvious that this idea is as wrong as you can possibly be without being eveN slightly right. Sure, Ford and GM's cratering market share means they'd have no problem dealing with antitrust regulators. Sure a Ford-GM Axis of Angst might prompt some generous federal handouts. But they'll get those anyway. And these two companies' combined debt is larger than Mexico's national debt. Literally. So, this bone-headed idea isn't going to go any farther than it did back in 2006 , when GM's Fritz Henderson met with Ford's Don LeClair to discuss a possible merger. So… will the GM executive/board member who suggested this idea please stand up? We have an award for which you will be nominated.
Find Reviews by Make:
Read all comments
Just like the GM buying Chrysler speculation, this speculation is 100% false and not worth spending 10 seconds of your life on. I’ve already spent too much time that I will never get back typing this reply.
When I’m on my deathbed needing a heart transplant, please make sure you find the oldest, sickest, fattest, unhealthiest donor you can find for me. Woo Hoo!!!
So if you tie two sinking ships together, somehow they will float?
So if you tie two sinking ships together, somehow they will float?
More like one drowning drunkard grabbing hold of another to stay afloat just as the second drunkard was getting close enough to the shore to stand up.
8 + 4 = 0
GM’s just jealous of Mulally. And Ford Europe. And Mazda.
But really, wouldn’t the other half of the merger need to agree? No chance of that happening. I mean, would any company in the world want to merge with GM right now?
GM execs talking out of their ass. What else is new?
Perhaps they can do that and get a two for one special at bankruptcy court.
BTW: Ford just hit $5.02 a share this morning. The combined worth of the two companies, after liabilities, could not get you an outhouse imported from a third world country.
hltguy:
BTW: Ford just hit $5.02 a share this morning. The combined worth of the two companies, after liabilities, could not get you an outhouse imported from a third world country.
If Ford’s stock gets any lower maybe all of TTAC’s B&B can chip in and just buy all of the stock for pocket change and run the board of bystanders off. Anyone with me?
Look at the wonderful potential:
1. Mulally can be CEO of both Ford and GM.
2. Ford gets rid of the Ford family
3. Kirk Kerkorian can invest in both in one stroke
4. GM can start using Ford hybrids
5. The Ford Flex and GMC Acadia don’t need to compete with each other; just pick one.
6. GM can start to produce the Ford Focus and Fiesta
7. Ford can start to produce the Chevy Volt
8. Detroit can slim down by 50,000 UAW workers and close 10 factories
9. GM and Ford can agree to offer no incentives on pickups any more
10. It beats being sold to Tata or China.
The only thing that could possibly be worse would be a GM-Chrysler merger. Behold the stillborn Pontiac Jeepster.
There’s nothing wrong with banter, but there is if it’s all you’ve got. And it’s worse if your banter makes Business Week.
If Ford’s stock gets any lower maybe all of TTAC’s B&B can chip in and just buy all of the stock for pocket change and run the board of bystanders off. Anyone with me?
Isn’t Kirk Kerkorian working on that already?
Isn’t Kirk Kerkorian working on that already?
Sure, but who wants another old rich man in a position of power? :)
Nice job marc. I got very close to a spit take reading your comment.
I’m with lth. Although I like to think of myself as a rich old man in power, like most of us my financials are not quite up to the Kirkster’s level. I do have $28.36 that I was going to flush down a toilet to put towards the BFF (Buy Ford Fund).
I can imagine Ford cherry picking a few GM assets at the courthouse steps auction, but other than that … not going to happen.
Tick tock.
This type of thing happened once before back in 1968. It was the merger of the “sick” Pennsylvania Railroad with the “sicker” New York Central Railroad, fierce competitors of each other. Their merged company was called Penn Central Transportation Company and within two and a half years, by June 1970, they were bankrupt and by 1976 were gone completely from the transportation landscape. At the time in 1970, their Chapter 11 bankruptcy was the largest in American business history.
I imagine a GM-Ford hook-up, if it ever came to that which is doubtful, would eventually dwarf the Penn Central disaster.