Not sure where this needs to go, but I live here in the SD section. So, I thought I'd share.

Enjoy.

GM Approached Ford About Merger - WSJ.com


DETROIT -- General Motors Corp. approached Ford Motor Co. in recent months about a possible merger but Ford called off the talks after the Dearborn, Mich. auto maker concluded it should continue to go it alone, according to a person directly familiar with the talks.

News of the merger talks came one day after reports surfaced that GM has recently been in discussions about acquiring privately held Chrysler LLC. The upheaval in financial markets has rendered inactive the talks between Chrysler owner Cerberus Capital Management LLC and GM, which wants to shed its stake in GMAC, these people said. However, if markets stabilize, the talks could be renewed because both parties want to move those assets quickly, these people added.

GM's talks with Ford were "very loose and preliminary, more exploratory in nature than anything else," one person briefed on the matter said.
"Without referencing this specific rumor, as we've often said, GM officials routinely discuss issues of mutual interest with other auto makers," GM spokesman Tony Cervone said on Friday. "As a policy, we do not confirm or comment publicly on those private discussions, which in many cases do not lead anywhere." Mr. Cervone could not be reached immediately on Saturday afternoon.

Ford spokesman Mark Truby said Saturday that "It's not our practice to talk about private discussions with others….Our total focus right now is on integrating Ford and leveraging our scale around the world." GM and Ford already have a joint venture involving six-speed transmissions and have talked about expanding that partnership to include powertrains, according to sources familiar with the discussions.

In an interview Friday, Chief Executive Alan Mulally did not discuss mergers or asset sales, but reiterated that a bankruptcy filing is not an option for the struggling auto maker. New questions from analysts and credit-rating agencies raised concerns about GM and Ford's current cash-burn rate and future liquidity position.

"It makes absolutely no sense to us," Mr. Mulally said of bankruptcy. "Everything we are doing is to manage our cash and right-size the company appropriately. It makes no sense." His comments come after GM. issued a statement that it isn't considering bankruptcy protection as a means for dealing with its financial troubles.

In the interview, he said Ford will discuss its future production levels when it releases third-quarter results later this month. Ford's chief executive has maintained that the auto maker must adjust its output to match softening demand. Auto sales around the world have slumped in recent months as credit tightened and recession fears mounted.

On Friday, sources confirmed that Ford is exploring the sale of its controlling stake in Mazda Motor Co. as part of an effort to shore up the U.S. auto maker's finances amid a downturn in global auto sales and questions about the company's liquidity position, according to a person familiar with the matter. But other sources familiar with the company's plans said Saturday that it is part of a larger review of Ford's assets and the sale of the Mazda stake is not yet a done deal.

GM, burning through $1.2 billion in cash per month, had initially planned to raise billions in secured financing by pledging various unencumbered assets as collateral for loans. After being shut out in the credit markets during the summer, mostly because lenders were concerned about the rapid deterioration of the U.S. auto industry, GM executives were planning on making a fresh pitch to banks and other potential lenders after Labor Day, a person familiar with the matter said.

But GM found it was still locked out of getting affordable loans, forcing the company to rev up activities related to evaluating strategic alternatives, this person said.
GM's need to reconsider a $15 billion fundraising plan it announced July 15 became freshly evident last week, when U.S. auto sales for the month of September came in below a 13-million annual sales pace, representing the second time in three months the pace fell that low.

GM's current cash planning relies on holding 21% of a 14-million annual sales market. In August and September, the overall market finished well below that expectation, but GM's market share was much higher than 21%.
Still, analysts question whether GM will maintain a higher-than-normal market share given the fact recent sales gains were juiced by hefty discounts and fleet sales. GM has been working to reduce its reliance on discounts and fleet sales because they often eat into profits and damage the resale value of vehicles.

"We have been looking at every possible angle by which we could save cash and raise financing," one person in the company's treasury department said. "Virtually everything is on the table."

 

Chrysler is a cancer, and whoever touches it.... gets it. I hate to even think about this, but I would support Ford to the grave (or a Ford/GM merger). Sucks to be making ANYTHING these days

<- American Manufacturer

 

Agree.

Hopefully this will change in the next year or so.

 

 

On a positive note I paid $2.89 today for 89 octane without any special carwash or cash only discounts. Energy is dropping, should revamp the auto market despite the economic downturn. After all, the only thing making this garbage worse than what we experienced in 01 is the outrageous energy costs... just my opinion, not trying to make people crawls out of their hole and economically pimp smack me,

But things can really only start going up! and what I took from that article, Ford will probably buy partial rights to the Duramax if things continue to head south with International/ Navistar. That would be cool

Nothing against powerstrokes, but I am partial to the duramax, but hate the GM truck! And those wierdos don't offer a manual gear box?!?!?!

 

I agree...A Ford with a Duramax is a win win!

 

Just an FYI

NEWS BRAKE: Wednesday, August 27, 2008 - AutoWeek Magazine

Autoweek is a great site, what they fail to mention is Chrysler also has it's truck line, car line, and every aspect up for sale... Last I heard TaTa motors out of India is the highest bidder for the Viper line, those are the same guys that just picked up Jaguar and Aston Marton

 

Cerberus Capital Management owns 80.1% of Chrysler, Daimler AG (formerly Daimler-Chrysler) owns the rest.

Tata Motors of India did not buy Aston-Martin.

Ford sold Aston-Martin to a group of British private investors.

Tata bought Jaguar and Land Rover from Ford.

When Ford sold Jaguar to Tata, this applies: not that:

Estimates are that Ford lost 20 BILLION DOLLARS on Jaguar alone!

Despite all the mechanical and styling improvements Ford made, Jaguar never made so much as one cent of profit for Ford.

Ford lost a bundle on Land Rover, too.

Volvo has been for sale for over a year. So far, no takers.

Yesterday I read in the Detroit Free Press (freep.com) that Ford wants to sell its 33% interest in Mazda.

I read most of the automotive fan mags and trade journals like Automotive News (subscribed since 1967).

There is nothing verifiable in print anywhere that says Cerberus has any part of ChryCo for sale...except Viper.

There are rumors that Jeep may be bought by Mahindra Motors of India, that Dodge may be bought by Nissan.

But these are just rumors, not facts.

 

No, you means Ford with a CUMMINS is win win.

 

Once again an IMO but since Cummins did away with the 5.9L idk about that engine anymore. I have often pondered putting the 5.9 into my SD, but I just dont have the pennies or the care lol

Since the death of the 7.3L PS and the 5.9 Cummins, diesel engines have become like automatic transmissions... I just don't trust them

And for the record, my truck does have an automatic transmission... and I spend at least 5 minutes of every drive just listening to it shift just waiting for it to make a mistake :/ Hopefully this Ford tranny is stronger than all the GM ones I had though, we got 142K on the clock and I am just scared of the darn thing

 

I think a Ford with a big yellow Caterpillar in it would be a win win!!!

 

I think any monitary merger is a bad idea, working together is another story. Ford/GM went together with the 6spd auto that is currently in the fusion and other GM cars. Ford and GM could help eachother out with R&D, manufacturing and etc.

A quick way I would cut the fat is to give the executives and top managment a huge pay cut. GM has been going down the toilet and the CEO still makes over $15m a year. This applies for Chrysler/Dodge and Ford as well. Drastic times call for drastic measures. Japanesse execs don't make near the $$$ like the american auto execs do

 

Here's what I know....

I'm not aware of any vehicle that is 100 percent US manufactured...parts from from all over. Toyota touts the fact that their cars and trucks are now made in the USA...and that's true...however some of that profit goes home to Japan.

I see more and more folks buying Hundais, Kias, and soon cars from India (Tata Motors) and China. Lots of these same folks whine about the US economy and how we have lost our competitive edge.

I know that I'm a Ford guy...I don't have a problem with parts of my truck coming from Canada or Mexico or Ireland. I refuse to own a foreign plate....I own a couple of trucks...all of them are Fords. My wife owns a Taurus wagon and a Dodge minivan...and if my local used car guy had a Windstar on his lot,we'd be an all Ford family.

I'm just one guy...a tiny fish in a damn big pond...but if I give in where will the US be?

Thanks for sticking with a successful US company guys! They ain't perfect but they'll do in my book!

Joe

 

Ill agree with that...

 

It's my 2nd choice!

Cummins, Cat, International MaxxForce, then...... a giant carbed 460.