According to an article in Business Week magazine, a Ford and General Motors merger was discussed at a recent management meeting at General Motors. The idea was shot down, of course, but the prospects of such a merger were most interesting to the casual observer.
The idea for the potential merger was proffered by a General Motors executive who was clearly reacting to the current strain on the markets. A merger would likely save some grief but could probably also add some tension to the industry giants. There is certainly no assurance that such a merger would wind up saving both companies, either.
Citing “someone familiar with the discussion,” the Business Week article goes on to say that the merger was turned down because it would have been a huge distraction from the real business of the day and that any such merger would compound the numerous problems both companies were having. I think the idea of the merger would actually minimize the problems, as both companies could attack them together and come up with a grouped solution. But I suppose that’s why I’m a blogger and not a business executive with a sinking automotive firm.
As many pundits and analysts have admitted, such a merger could save a lot of the issues both companies face as the merging of the business capital would certainly come in handy when dealing with fiscal issues. Having the financial pools of both companies to deal with would certainly be advantageous and could provide some remarkable opportunities for investors.
For now, though, the idea is simply a discussion in passing. Perhaps the idea of the merger is enough to get some tongues wagging in the higher circles, as the combination of business capital and executive power would likely make an instant impact in the industry and could wind up putting a lot of people back to work. The Ford dealer outlets and GM dealer outlets would be grateful.
