Ford, GM toy with merger talks, report says
09-18-2006, 11:17 PM
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Ford, GM toy with merger talks, report says
That would be like HP buying Compaq and it would take several years for it to be fruitful and those were high tech companies
that are used to thinking outside the box. Ford and GM aren't used to doing that.
Ford, GM toy with merger talks, report says
Sources familiar with discussions say talks are not currently active and may not prove fruitful, paper reports.
September 18 2006: 4:33 PM EDT
CHICAGO (Reuters) -- Senior executives at General Motors Corp. and Ford Motor Co. have discussed a merger or alliance, industry newspaper Automotive News reported Monday.
Citing several sources familiar with the talks, the paper said it was not clear whether the negotiations will bear fruit.
As of now, the two companies, both struggling with shrinking market shares while restructuring operations, are not holding talks, and one source said there is a slim chance that anything will come of the situation, Automotive News said.
GM and Ford declined to confirm any talks.
Shares of GM (down $0.18 to $31.48, Charts) fell less than 1 percent, while shares of Ford (down $0.20 to $7.82, Charts) dropped nearly 3 percent during morning trade on the New York Stock Exchange.
"As we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Brian Akre said.
"As a policy, we do not confirm or comment publicly on those private discussions, which in many cases never lead anywhere." Ford spokesman Tom Hoyt said, adding the automaker does not comment on speculation.
Friday, Ford said it would slash $5 billion in costs and one-third of its work force as it warned its auto business would not make a profit in North America for another three years.
It also suspended its dividend and pledged to revamp a vehicle lineup seen as weak by analysts.
Disappointed investors
However, the No. 2 U.S. automaker ruled out an immediate sale of its Jaguar brand, disappointing investors who wanted Ford to press ahead with asset sales to raise cash, sending shares to their biggest single-day percentage decline in almost four years.
Earlier this month, Ford named Alan Mulally, a former Boeing Co. (up $0.20 to $75.21, Charts) executive, as chief executive, ending the troubled five-year stint of Bill Ford Jr. as the company's operational head.
GM is in the midst of its own restructuring as it tries to recover from a $10.6 billion loss in 2005.
Turnaround efforts at the world's largest automaker have gained traction this year as 34,400 workers - about a third of its work force - have accepted early retirement and buyout offers. GM is also closing 12 plants.
Still, CEO Rick Wagoner is under pressure to show further improvement as GM studies a possible tie-up with Nissan Motor Co. Ltd. (up $0.14 to $22.58, Charts) and Renault SA (down $1.97 to $113.60, Charts) in which Nissan and Renault could buy up to a 20 percent stake in GM.
That deal, urged by GM's largest individual shareholder, billionaire investor Kirk Kerkorian, has been widely viewed as a means of prodding Wagoner to speed up the company's turnaround efforts.
Last year, GM and Ford agreed to jointly develop a new 6-speed transmission, which is in production in plants at both companies.
Shares of rival automaker Daimler Chrysler (Charts) edged higher Friday after it said it would cut U.S. production through the end of 2006. Toyota (Charts) shares were slightly lower.
that are used to thinking outside the box. Ford and GM aren't used to doing that.
Ford, GM toy with merger talks, report says
Sources familiar with discussions say talks are not currently active and may not prove fruitful, paper reports.
September 18 2006: 4:33 PM EDT
CHICAGO (Reuters) -- Senior executives at General Motors Corp. and Ford Motor Co. have discussed a merger or alliance, industry newspaper Automotive News reported Monday.
Citing several sources familiar with the talks, the paper said it was not clear whether the negotiations will bear fruit.
As of now, the two companies, both struggling with shrinking market shares while restructuring operations, are not holding talks, and one source said there is a slim chance that anything will come of the situation, Automotive News said.
GM and Ford declined to confirm any talks.
Shares of GM (down $0.18 to $31.48, Charts) fell less than 1 percent, while shares of Ford (down $0.20 to $7.82, Charts) dropped nearly 3 percent during morning trade on the New York Stock Exchange.
"As we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Brian Akre said.
"As a policy, we do not confirm or comment publicly on those private discussions, which in many cases never lead anywhere." Ford spokesman Tom Hoyt said, adding the automaker does not comment on speculation.
Friday, Ford said it would slash $5 billion in costs and one-third of its work force as it warned its auto business would not make a profit in North America for another three years.
It also suspended its dividend and pledged to revamp a vehicle lineup seen as weak by analysts.
Disappointed investors
However, the No. 2 U.S. automaker ruled out an immediate sale of its Jaguar brand, disappointing investors who wanted Ford to press ahead with asset sales to raise cash, sending shares to their biggest single-day percentage decline in almost four years.
Earlier this month, Ford named Alan Mulally, a former Boeing Co. (up $0.20 to $75.21, Charts) executive, as chief executive, ending the troubled five-year stint of Bill Ford Jr. as the company's operational head.
GM is in the midst of its own restructuring as it tries to recover from a $10.6 billion loss in 2005.
Turnaround efforts at the world's largest automaker have gained traction this year as 34,400 workers - about a third of its work force - have accepted early retirement and buyout offers. GM is also closing 12 plants.
Still, CEO Rick Wagoner is under pressure to show further improvement as GM studies a possible tie-up with Nissan Motor Co. Ltd. (up $0.14 to $22.58, Charts) and Renault SA (down $1.97 to $113.60, Charts) in which Nissan and Renault could buy up to a 20 percent stake in GM.
That deal, urged by GM's largest individual shareholder, billionaire investor Kirk Kerkorian, has been widely viewed as a means of prodding Wagoner to speed up the company's turnaround efforts.
Last year, GM and Ford agreed to jointly develop a new 6-speed transmission, which is in production in plants at both companies.
Shares of rival automaker Daimler Chrysler (Charts) edged higher Friday after it said it would cut U.S. production through the end of 2006. Toyota (Charts) shares were slightly lower.
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For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future. Then you will call upon me and come and pray to me, and I will listen to you. You will seek me and find me when you seek me with all your heart.
For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future. Then you will call upon me and come and pray to me, and I will listen to you. You will seek me and find me when you seek me with all your heart.
09-18-2006, 11:39 PM
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RE: Ford, GM toy with merger talks, report says
That could be a solution but they need to learn how to make cars that people like and use the best stuff they have. They should utilize Ford's FWD platforms they own under Mazda and Volvo. They should use Ford's I4s because they are more reliable. They should use Ford's interior designs on the trucks. They should use GMs RWD platforms, V6s and V8s, and their strategies that give better fuel economy. They both need styling updates, better transmissions, and some newer marketing strategies.
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09-18-2006, 11:45 PM
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RE: Ford, GM toy with merger talks, report says
They should call that new company: FORDGM
F rankly
O ur
R esponse
D oesn't
G ive
M eaning
I told you it was getting late for me. I better quite while I am ahead. LOL!
F rankly
O ur
R esponse
D oesn't
G ive
M eaning
I told you it was getting late for me. I better quite while I am ahead. LOL!
__________________
For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future. Then you will call upon me and come and pray to me, and I will listen to you. You will seek me and find me when you seek me with all your heart.
For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future. Then you will call upon me and come and pray to me, and I will listen to you. You will seek me and find me when you seek me with all your heart.
09-18-2006, 11:46 PM
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RE: Ford, GM toy with merger talks, report says
LOL! That's a good one. Alright, thanks for bringing these to us.
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"To Debate and Moderate" since 2006
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