At a couple of recent GM meetings, executives threw around the idea about a possible merger with Ford Motor Company, according to BusinessWeek. However, the idea went no further than some internal shouting according to sources who attended the meetings.
GM executives believe talks of a merger with Ford would be a ‘huge distraction’ at a time when the execs are focused on turnaround; not to mention FoMoCo is faced with similar problems.
According to David Cole, chairman of Center for Automotive Research, American automakers are considering a lot of options as they burn cash and look for a way to cushion themselves from $4 a gallon gas-prices. Cole highly doubts that a merger will happen.
This isn’t the first time talks of GM and Ford teaming up have come up. In 2006, Automotive News reported that GM’s current CFO, Frederick “Fritz” Henderson, who was GM’s president at the time, met up with Ford’s CFO Don Leclair to discuss an alliance.
And while the Justice Department would never have allowed a GM/Ford merger a couple years back, things are much different now. According to BusinessWeek, a GM/Ford merger would be value at more than $350 billion in revenue.
What do you think? Speak out in the comments section below. Imagine what Chrysler would do?