GM, Ford Reportedly Talk Deal

[wilfred]

http://www.thestreet.com/_nasdaq/newsanalysis/automakers/10309510.html?&cm_ven=NASDAQ&cm_cat=FREE&cm_ite=NA


The nation's two largest automakers, Ford (F - commentary - Cramer's Take) and General Motors (GM - commentary - Cramer's Take), have reportedly discussed an alliance or merger.

Trade journal Automotive News, citing sources familiar with the talks, said discussions began in July, but they are not taking place as of now. A source also said there's a "slim chance" that anything will come of the talks.
Both companies reportedly declined comment on the story.
Ford and GM are each seeking to revitalize their struggling North American operations, which have been hurt by rising gas prices and intense competition from overseas automakers.
GM is in talks for a potential alliance with Nissan and Renault, which are both run by Carlos Ghosn. The Wall Street Journal reported that Ford also reached out to Ghosn seeking alliance discussions should the GM talks fall through.
Shares of Ford, which on Friday set a broad cost-cutting plan to accelerate its turnaround, recently were down 4 cents to $7.98. GM shares were down 2 cents to $31.64.

Oh wonderful. The weak will get weaker if that happens.

S.

[NEOCON1]

no no please say its not so . man i hope GM stays the hell away from ford .

i wish they would buy toyota then they would be the biggest for a long long time

[KenP]

Look at the cutting edge and quality of Chrysler. They're not hurting.

GM and Ford are lumbering giants that can't move quickly in this marketplace.

Correct me if I'm wrong, but I believe LABOR is the largest expense for domestic brands. Thanks Unions. You've outlived your usefullness.

[f5fstop]

Originally Posted by KenP

Look at the cutting edge and quality of Chrysler. They're not hurting.

GM and Ford are lumbering giants that can't move quickly in this marketplace.

Correct me if I'm wrong, but I believe LABOR is the largest expense for domestic brands. Thanks Unions. You've outlived your usefullness.

Agree on the labor issue, and there is still the legacy costs. One reason why Toyota will never purchase GM or Ford...the legacy costs are too great.

However, your wrong about Chrysler, they are starting to hurt and primarily it is due to quality issues. Expected losses this quarter 1.5 billion.
http://www.detnews.com/apps/pbcs.dll...73257320302978
Last week they stated production to be cut by 65-75K unit, this morning, they might double that number.
Hemi engine production has been cut by almost 60 percent (that's understandable).

GM is starting to move faster, but NOT fast enough. Hopefully they will turn it around, if not???

[wilfred]

I agree, union is so 50s, time for them to move on to some developing countries. While I don't see the benefits of putting GM and FORD together, I do think Hyundai would be a perfect candidate for FORD since their products don't overlap much and FORD has a lot to offer. Too bad I am not Kirk Kerorian so nobody will listen to me

[Big Z]

I think it would be Cooler than Chit!....Call it the AMERICAN CAR CO.!

Then---- when asked what kind if rig you drive--You could say....An AMERICAN ONE!


Are GM and Ford--still, American companies ??

[Agriv8r]

[f5fstop]

Originally Posted by wilfred

I agree, union is so 50s, time for them to move on to some developing countries. While I don't see the benefits of putting GM and FORD together, I do think Hyundai would be a perfect candidate for FORD since their products don't overlap much and FORD has a lot to offer. Too bad I am not Kirk Kerorian so nobody will listen to me

Have to remember about Kirk, he is in this for the short run. Buy stock, get the price raised, then bail with a big profit. Not saying this is not the correct thing to do, but I believe the GM board of directors are looking at a lot longer life for GM than Kirk.

[wilfred]

Originally Posted by f5fstop

Have to remember about Kirk, he is in this for the short run. Buy stock, get the price raised, then bail with a big profit. Not saying this is not the correct thing to do, but I believe the GM board of directors are looking at a lot longer life for GM than Kirk.

I disagree. For a 89 year old, worth $10 billion, and still working. I don't think he needs to pull this kind of stunt to make another billion dollar. So IMHO, I don't buy how some media thinks he is trying to make a quick buck and bail.

[Vettster]

Originally Posted by Big Z

I think it would be Cooler than Chit!....Call it the AMERICAN CAR CO.!

Then---- when asked what kind if rig you drive--You could say....An AMERICAN ONE!


Are GM and Ford--still, American companies ??

Why not? They could call it American Motors!

[f5fstop]

Originally Posted by wilfred

I disagree. For a 89 year old, worth $10 billion, and still working. I don't think he needs to pull this kind of stunt to make another billion dollar. So IMHO, I don't buy how some media thinks he is trying to make a quick buck and bail.

Read money magazines, watch money talk shows. Why do they all say this (or most), his track record...Chysler for one. He may be old, but he is still smarter than hell, and knows how to turn a quick buck.
Time will tell...
Right now there is talk (I believe) Lacy looking to grab up GM stock and try a takeover.