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GM tried to merge with Ford?!!!

October 12, 2008

HOLD THE PRESS!!!

New York Times scribe Bill Vlasic set the U.S. automotive industry abuzz last night, reporting that GM and Chrysler were discussing a merger. Careful reading of the article revealed that the story had more holes than a block of Emmantal. It included unocorrobrated, unnamed sources; backpedalling a plenty and language couching that seemed carefully designed to maintain what Ronald Reagan’s administration famously called “plausible deniability.” [Continue reading after jump] Oh, and it didn’t make any sense. Today’s follow-up– declaring that GM and Ford were looking to hook-up– is even less credible, AND less equivocoal. [NB: Again with the “two people.”] “In July, G.M. approached Ford with a proposal to combine the operations of the two biggest American automakers. The talks involved several meetings between G.M.’s chairman, Rick Wagoner; its president, Frederick Henderson; Ford’s executive chairman, William C. Ford Jr.; and its chief executive, Alan R. Mulally, people with knowledge of the process said… Ford broke off the talks in September, these people said. Mr. Ford and Mr. Mulally were said to have concluded that their company had a better chance to reorganize on its own than in tandem with another automaker.” TTAC’s take: While such a high-level meeting may have taken place (and it may not), again, the automakers had plenty of things to talk about other than merging: federal loans, federal bailouts, federal regulation etc.

Source: TheTruthAboutCars.com

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