GM and FoMoCo Merger???

TollKeeper

Well-Known Member
So reading thru some Wallstreet rumors and millings. There seems to be talk of a Merger inbetween the big 2, and how it will be needed to combat against the FCA merger with Renault.

A Ford And GM Merger Is a Possibility?

Although I personally dont ever see it happening, and is more likely to happen inbetween Nissan or Mazda and Ford (since they were bed partners before) before it ever happened with GM.

But I have been wrong before.

Fords US market share has dropped by 17%. Where GM's has stayed at a flat 0%. Staying flat, although not good for business growth, it also means you arent loosing business. But 17% loss.. Thats huge in a market with this much competition. If a merger did happen, some names would have to go. Buick? GMC? Lincoln? Cadillac? Maybe even the staple brand names.. Ford? Chevrolet?

The bailout that Ford took back in the market crisis under Obama's administration was quite a bit different from what GM and MOPAR took (and Yes, Ford did take a bailout, just different because of government contracts). How did GM recover so well, and pay back the bailout, where Ford has steadily declined, although the bailout was payed back.

But then again, this could all be rumor mill, and it never happens..
 

Mooseman

Moderator
I don't see it happening either. They're just too big and such bitter rivals. Which would be dominant? Usually, in a merger, the bigger one would dominate and snuff out the smaller one.

But lets have some fun with this. What would be the new name if it were to happen? GORD? FGM? (that F is open to interpretation :laugh:), GMF?
 

littleblazer

Gold Supporter
They've been building transmissions together for the last 10 years or so... With GMs engineering team and fords.... wait what do they bring to the table again? :rotfl:
 

JPutnam

Well-Known Member
I don't know, but it might be good in the long run. It's not like either one is the same companies from the past and times have changed. We need better competition and it would be good for the economy. Plus shared factories and resources would help with the price competition.

When I was working at Caterpillar there was talks of working with the green team to share logistics and plants, and I think there is even more rivalry between the two.
 

littleblazer

Gold Supporter
I don't know, but it might be good in the long run. It's not like either one is the same companies from the past and times have changed. We need better competition and it would be good for the economy. Plus shared factories and resources would help with the price competition.

When I was working at Caterpillar there was talks of working with the green team to share logistics and plants, and I think there is even more rivalry between the two.
It's like the mob... even where I work there is tough competition but we are pulling material out of another plant even though the site is within our plants reach. You learn to realize you have your territory but you can't exist without eachother too. I scratch you back and you scratch mine. That's how it seems to work most places. And you need to know how not to step on toes. Shut, we redid the whole industrial complex where one of our competitors is iirc. We even parked our trucks in their lot. :rotfl:
 

Reprise

Lifetime VIP Supporter
Surprised to hear this, but not shocked. Ford & GM have actually collaborated on things for decades. Smaller things, not like the transmission they developed together. So I could see it happening, especially if they wind up putting out the evolutionary replacement for the ICE together (e.g.; a Tesla-killer). Both are still Detroit-based companies, for the most part.

As for other suitors... the only one who could realistically take either of them on would be Toyota, or perhaps VW. Culturally, Toyota would be a better fit for GM (remember NUMMI?); Ford and VW seem like a likely pairing, and I think there's some history between them, too. As an aside, that might be interesting, if it came to pass -- Japan vs. Germany, for the dominant global transportation entity (at least, short-term).

I think one of the reasons Ford sank so precipitously was their lack of focus in the China market. GM has grown & nurtured that market, to the point where they were selling more cars there, than in N. America. That's what's held GM up, IMO.

Another thing to consider is 'peak car'... there's a school of thought that global automobile sales peaked a couple of years ago and may decline from there. So the carmakers have to get leaner... again.

It's long been said that a good indicator of a nation's manufacturing health is represented by their automobile industry. Is something like this the canary, gasping its last?
 

northcreek

Well-Known Member
One other potential snafu that might happen is buyer protest. Ford and GM owners have traditionally been in two separate camps, each detesting the other. How do you reconcile this divide ? Kinda like making a Wine lover and a Beer lover drink the two bevs mixed together ...:puke:
 

DocBrown

Well-Known Member
Much ado about nothing. This is one analyst's viewpoint, nothing in there that says anyone in either company is actually considering this. When all is said and done it's a fluff piece.
 

Locksmith

Well-Known Member
I used to hate Fords, and heard the tale about how GM had to bail Ford out by giving them the idea of "porcupine heads" staggered head valves because if Ford sank, fear of GM monopolizing the auto industry. I hope I don't get hate mail, but I respect Fords advancements in reliability.
 

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