Autoblog

Of all the preposterous ideas floated around this, the new automotive landscape, none seem as ridiculous as Ford and General Motors merging together to create a singular domestic monolith. But according to a BusinessWeek source, the idea was recently floated by execs during a meeting of the General's generals... and then shot down moments later.

While we wouldn't describe this as a close call, the fact that it was even mentioned speaks volumes about the dire straits Detroit's Big 3 (or 2.8, if you prefer) are in. Between plummeting sales, increased material costs, high fuel prices and union woes, both automakers are facing seemingly insurmountable challenges. But creating a $350 billion bloated corporate entity with excess production capacity, weak brands and more cannibalizing product overlap than has ever been seen, there's no doubt that it would be suicide for all involved. Not to mention the fact that the amount of resources necessary to pull of such a Herculean task would take precious time and money away from righting both automakers and their ailing product portfolios. Thankfully, that's why the idea was dropped within minutes of its introduction.

[Source: BusinessWeek]

Swiss-born GM Vice Chairman Bob Lutz was asked by a Swiss newspaper Sunday if his company would go it alone or seek a merger with Ford. Lutz answered, "We are open to alliances. But we can also be successful alone."

Does this mean GM and Ford are talking merger? Not likely, but it could mean more cooperation in the future, like the co-developed 6-speed transmission being used in Ford's Edge and Saturn's Aura.

Lutz also said GM was still open to working with Renault-Nissan despite a recent report saying Renault-Nissan CEO Carlos Ghosn was no longer interested in talking to U.S. automakers about possible alliances.

[Source: SonntagsZeitung via Reuters]