Never say never: Ford willing to team with other automakers
Talk about eerie. Shortly after news that Genera Motors was to engage in talks about an alliance with Renault/Nissan, every columnist worth his salt began to speculate about Ford Motor Co. forming a similar alliance with another automaker in the industry. Many pointed out that such a team-up would make more sense than a GM/Renault/Nissan trio given Ford's precarious position in the market, which is considered by some to be worse than its larger domestic rival.Well, such speculation may have been given some substance over the weekend. Ford CEO Bill Ford, Jr., said in an interview with the New York Times that the automaker has not dismissed such an alliance. He did not specify any particular automaker, though, and the company will continue plugging away with its 'Way Forward' plans. States Ford, "Regardless of any deal we might envision, the fact is that we have to fix our North American business." Sounds a lot like Rick Wagoner circa a week ago.
If Ford did get to pick a partner in the auto industry with which to join forces, which would make the most sense?
Related:
Good for GM on the merger thing, now what about Ford?
Ghosn says "no" to top spot at GM; is not currently talking with Ford
[Source: New York Times via Reuters]
Reader Comments (Page 1 of 3)
Alexander Drummond 12:07PM (7/17/2006)
Newly re-invigorated PSA Peugeot Citroën, possibly?
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Ryan 12:08PM (7/17/2006)
Did any of you guys hear about Toyota trying to block the Nissan deal with GM with an offer of their own? Its at abcnews.com
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emulous1974 12:13PM (7/17/2006)
Try as hard as might to pick a good match for Ford, I can only see this benefiting Ford and not another company. I disagree that Ford is worse off in what it owns over GM. I mean Aston Martin, Volvo, Jaguar and Land Rover are very good lines that I think many a company would want and Ford has made good measure in beefing them up to make them more appealing in a financial sense.
I think VW would be the best alliance, I just don't see why VW would want to with all that it has on it's hands already.
I think the most interesting alliance would be Hyundai, but I doubt they have financial strength to do what Ford needs.
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bgdc 12:28PM (7/17/2006)
I'd say Toyota is the only big player left. Honda has some dough but not the same clout as toyota. BMW or Porsche have cash but they'd only be dragged down by an alliance.
I'd expect Toyota before anyone else.
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Corey W. 12:29PM (7/17/2006)
Thanks Ryan:
Reuters
Jul 17, 2006 — TOKYO (Reuters) - Top executives at Toyota Motor Corp. are considering options to head off rivals Nissan Motor Co. and Renault from forging an alliance with General Motors Corp. , according to BusinessWeek.
Citing unnamed sources, a July 15 article on the magazine's Web site said Japan's Toyota, the world's most profitable car maker, is considering its options and looking at different opportunities it could propose to GM.
"Toyota has no interest in seeing an alliance like this (linking Renault, Nissan and GM) take place," an executive, who asked not to be identified, told BusinessWeek.
GM, Renault SA and Nissan agreed on Friday to take 90 days to review the benefits of a potential alliance, which could lead to the birth of the world's biggest auto group with annual sales of 15 million vehicles — the size of two Toyotas.
The decision followed a dinner meeting in Detroit between Wagoner and Carlos Ghosn, CEO of both Renault and Nissan.
A Toyota source said the company has "war-gamed" a way to assist GM, BusinessWeek said.
The magazine had no further details on Toyota's plans. It quoted Toyota spokesman Steven Curtis as saying that any talk of an offer from the company is "pure speculation."
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Jeff Crew 12:37PM (7/17/2006)
Why not join up with Honda?
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Chris 12:39PM (7/17/2006)
Enough of this silliness- GM should merge with Toyota- Ford should merge with Honda- end of story
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s 12:49PM (7/17/2006)
HELL NO!
I do not want Ford merging with Honda!! Infact, Ford and GM should learn how to solve their own problems like Honda and Toyota by not over manufacturing and streamline their line-up with necessary vehicles needed.
I doubt if Honda will merge with anyone. Honda knows how to keep from getting over their head.
Ford should just go away!
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Chris 12:50PM (7/17/2006)
Maybe GM and Ford should merge? I know this comment will bring out the idiots with comments like "kill two birds with one stone" and "double the poor quality" and so on. But stop and think, neither would have to take on the liability of a poorly performing company because they already are. They could pool their resources into competing with the Asian companies (not just Toyota because their time at the top will be short) while not having to beat each other over the head with stupid discounts all while maintaning the fact that it would be the only AMERICAN automaker left!
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Will Wheeler 12:50PM (7/17/2006)
Hmmm A Ford-Honda alliance? As much as I hate the idea of the demise of the American auto industry, the thought of a silky smooth Honda V-8 in an F-150 is pretty sweet.
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S. Daniel Ackerman 1:19PM (7/17/2006)
Toyota is less interested in “helping” GM than it is in protecting its own market share. The Toyota source said that it had “war-gamed” a solution to propose to GM, which seems like a pretty clear indication that it is simply trying to protect a pool of resources (potential car buyers). Toyota would have little to lose and much to gain from GM tanking, but Renault and Nissan are financially strong and are in a position to essentially purchase GM’s market share through this merger.
An interesting balance might be struck if Toyota itself merged with the struggling Ford, and Nissan and Renault merged with GM. That would leave Honda the odd man out, and they would have to start looking for a major motor group, with strong U.S. sales, to in hop into bed with, perhaps Volkswagon, or even BMW, which prides itself on being independent.
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Road Tester 1:26PM (7/17/2006)
I've aid it before, and I'll say it again. A merger doesn't help any of the companies, as it wouldn't end any of the probems they currently face (except maybe for the lack of money). One of the main problems right now are the pensions, which could be helped by an infusion of money from a profitable partner. But the main problem, especially in GM's case, is that they use the same platform (and design) for several brands competing in the same market, and have problems explaining to customers, why they should pay a premium for the more expensive models. Merging with another company competing in the same market (an all prospective partners do compete in almost all markets), would just emphasize this problem, as there'd be even more cars using the same problems that would have to be distinguished. If tey hven't managed to make the cars differ with four or five companies under their belt, how do they expect to do it with six or seven.
GM and Ford simply have to get their acts together, and be more innovative than their counterparts. When it comes to this, I believe the future is brighter for Ford, than for GM, as Ford has managed to build quite some nice cars in the past.
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Robert 1:31PM (7/17/2006)
I think that one alliance that would have benefits going both ways is an alliance between Ford and Fiat. Ford is in trouble and owns some european brands and Fiat has talked with them before. I think that between Fiat and Ford they could cover a wide range of consumers. Imagine Aston, Volvo, Jag, Land Rover, Ferrari, Maserati, Alfa Romeo plus the two parent companies. You would have the ability to have brands that are luxury, fast, safe, off-road, economic, the possibilities are endless. Also both Ford and Fiat have industrial sides to them that too could benefit from an alliance. Just a thought.
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FM 1:42PM (7/17/2006)
Sorry Ford,but you can't touch Honda. And for God's sake you have Mazda in your clutches and a bunch of other companies which you have mayor % in control.
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Dr. Woo 1:57PM (7/17/2006)
Don't count on any of the German brands taking an interest in Ford. Since the DCX merger, Mercedes' reliability has taken a serious hit, and Porsche really stepped out from its "comfort zone" of being the most successful solo automaker in existence to take a stake in the big Dub.
BMW most likely would not like to add such a huge, huge company to its stable. Its steps towards expansion have been miniscule, what with purchasing the MINI brandname and buying Rolls Royce from Piëch's VW.
Look to Peugeot-Citroën if anything, IMO.
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Jay 2:07PM (7/17/2006)
Why doesnt Chrysler,Ford and GM go out of business already!
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lavardera 2:27PM (7/17/2006)
How about Ford Europe taking over Ford USA, and sending some decent cars over.
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Sean 2:30PM (7/17/2006)
One problem Toyota would be dealing with if GM were to "tank" would be an anti-Japanese sentiment towards the automaker as Toyota would surely be blamed for at least contributing to GM's fall.
To those that make the statments like "Why don't Ford or GM just go away", do you realize how much money is reinvested into the American economy by those two companies? If either of the two companies were to go under, the shockwaves would be felt through the entire American economy. Yes, both companies are facing a serious battle to regain competativeness with the Asian brands, but this in not something that happened over night and it will not be fixxed over night.
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Puffy 2:37PM (7/17/2006)
Other than enriching a few lawyers and some high level execs, not to mention jettisoning more rank and file, what exactly would GM or Nissan or the average stockholder or consumer get out of the deal? My suspicion is that the only reason these kinds of deals even go through is to make a handful of people richer while offering no real world benefit to the companies, the consumer or the stockholder. Is MB making more money after buying ChryCo? Not really. Chrysler doesn't even exist really. Does the consumer get a better car? Nope. Who really benefited from this 'merger of equals'? Follow the money. That's where the real negotiations are happening between Nissan and GM. It's all about who will get how much money and/or power and to heck with everything else, including the company as a whole.
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Ryan 2:47PM (7/17/2006)
"15. Why doesnt Chrysler,Ford and GM go out of business already"
-Translation: As a consumer PLEASE limit our choices in what we want to buy.
Don't forget the fact the GM is STILL the Earth's biggest automaker.
Wasn't this the year Toyota is to pass GM as the Earth's biggest automaker? Well we are going on the 8th month....
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