GM and Ford to merge ??

[CSX 4133]

I see this article by the 'bean counters" as fiction, but the reality is both companies are not doing extremely well with few model exceptions. With Ford eliminating sedans in favor of SUV's time will tell if this product reduction will help or hurt the bottom line. A merger would make both companies one mega automobile company, but at what cost ?

https://www.marketwatch.com/story/gm-merger-with-ford-looks-more-likely-2019-05-28?fbclid=IwAR0ByKuqVlBOwbwic7krli4mXVFrCIqtlm3TdvaSv42sUDcX0wIJkavbdEE

[2112]

GM approached Ford on this just before they crashed and burned 13 years ago. The answer was no then, I am sure it would be no now as well.

Seems this is more about stock values than successful car and truck production. Wall Street wants to see Silicon Valley valuations in Detroit.

The truth is the beginning of the end of private car ownership is in sight. I think every manufacturer is scrambling trying to figure out how they will survive this paradigm change.

I think every manufacturer will end up becoming a ride sharing service in order to make a market for their product line.

Instead of Uber and Lyft, you will have Apps for Ford or BMW.

Or, young adults will pay a a monthly membership fee for unlimited driverless car service.

Bad news in my eyes, but reality none the less.

[shelbymann1970]

We are in for profound changes in the car market now and in the coming years. I have had classes for work  on the auto industry in the last few years. Scary and different times ahead for the auto industry. Gary

[shelbymann1970]

GM approached Ford on this just before they crashed and burned 13 years ago.

That is Ford's public take. Ford claimed that in summer of 2008 while still trying to right their ship. The only reason why Ford didn't go into bankruptcy is that they mortgaged the blue oval in 2006 and if they never hired Mulally they might not be a car company today. So while Ford still had much left of the 22 BILLION they borrowed when the economy crashed the private lending DRIED up. Lucky or dumb luck for Ford to have private financing in place . Lets not forget Mulally also went to DC with the other CEOs asking for money(if Ford's well ran dry). Lets not forget Ford also borrowed 5.9 BILLION the same month (June 2009) as GM and Chrysler and the govt made those 2 companies go into bankruptcy to get their $$$. Ford still OWES us billions from that loan.  I believe bankruptcy was pushed by union haters in DC who wanted the union contracts to go away and lower wages and benefits which it did. MY OPINION. I live in Ford country. Had many friends and neighbors lose their jobs at Ford(some went to Toyota down south). My Mom worked at Ford and retired in 2006.  Gary

[67 GT350]

My opinion is that Government should stay out of private business and get out of the way! GM would have been so much stronger if they were let to go bankrupt instead of our money being given to them. THE PROBLEM IS THE UAW. American companies need TUFF LOVE! Just like our kids do.
My family is from Buick Country, Flint MI....and my grandfather's brother was always told to "Slow it down" while working for Buick, the bottom line is they caused their own problems. They all came to this Country LEGALLY and LEARNED our language, and they LOVED AMERICA AND THEIR JOBS!

[6R07mi]

GM approached Ford on this just before they crashed and burned 13 years ago.

That is Ford's public take. Ford claimed that in summer of 2008 while still trying to right their ship. The only reason why Ford didn't go into bankruptcy is that they mortgaged the blue oval in 2006 and if they never hired Mulally they might not be a car company today. So while Ford still had much left of the 22 BILLION they borrowed when the economy crashed the private lending DRIED up. Lucky or dumb luck for Ford to have private financing in place . Lets not forget Mulally also went to DC with the other CEOs asking for money(if Ford's well ran dry). Lets not forget Ford also borrowed 5.9 BILLION the same month (June 2009) as GM and Chrysler and the govt made those 2 companies go into bankruptcy to get their $$$. Ford still OWES us billions from that loan.  I believe bankruptcy was pushed by union haters in DC who wanted the union contracts to go away and lower wages and benefits which it did. MY OPINION. I live in Ford country. Had many friends and neighbors lose their jobs at Ford(some went to Toyota down south). My Mom worked at Ford and retired in 2006.  Gary

Gary, I would respectfully disagree.
The bankruptcy was custom written by the Treasury Dept, in violation of 200+ yrs of bankruptcy law precisely to save the union benefit indebtedness.  As a GM bond debt holder my family lost their shirt, our Ford preferred stock still paid dividends.  This was NOT a union busting action but the exact opposite, it was to salvage the Chrysler & GM union jobs, "too big to fail".
The government loan guarantee for Ford was only an option if they couldn't get by with the private sector financing, which was not exercised.
The government made all 3 companies come together to the hearing so as to not call one out vs the others.
This was the same tactics taken with the bank bailouts, I know folks who were in the room with all the large mortgage backed securities banks, they were all told you must take the bailout $'s whether they participated in the mortgage back securities or not or you can't leave the room.

I agree these were examples of excessive government intervention into the private sector, and shouldn't have happened.

regards
jp

[683760]

The difference is Ford will pay back the money.  All due by 2022.  Us taxpayers lost over 11 Billion with GM.  Trump should hold their feet to the fire.  I believe GM is on the same track to bankruptcy it just won't take them 100 years to get there this time.

[shelbymann1970]

My opinion is that Government should stay out of private business and get out of the way! GM would have been so much stronger if they were let to go bankrupt instead of our money being given to them. THE PROBLEM IS THE UAW. American companies need TUFF LOVE! Just like our kids do.
My family is from Buick Country, Flint MI....and my grandfather's brother was always told to "Slow it down" while working for Buick, the bottom line is they caused their own problems. They all came to this Country LEGALLY and LEARNED our language, and they LOVED AMERICA AND THEIR JOBS!

LET GO BANKRUPT? Boy did you fall for that line. No, I WORK for GM. We would have been LIQUIDATED. If you know anything about chapter 11 and 13 then you might understand why we would have been liquidated. BTW If GM didn't have to pour BILLIONS  to meet govt standards in many areas (let the FREE MARKET DECIDE) then they could have had $$$ on hand to weather the crashed economy. The Union was a problem? Hardly the UNION helps GM in so many ways. Take your union bashing and shove it.

[shelbymann1970]

Moderator I will respectfully ask to lock or delete this topic before I start calling many uninformed people A-holes on this topic....

[Forum Guide]

Yeah.. feels like dry tinder.... government and politics.

Let's hold off until some real news emerges

Thanks