September 19, 2006
GM-Ford Merger
Posted by Gordon Smith

GM and Ford reportedly flirted with the idea of forming an alliance, but they have dropped the subject. For now. Last night on Marketplace, host Kai Ryssdal quipped, "if GM and Ford can lose billions separately, imagine how much they can lose together."

Two wrongs rarely make a right in the world of mergers, but it may make sense for GM and Ford to explore discrete opportunities for cooperation. GM is preoccupied with Nissan and Renault right now, but don't be surprised if alliance talk with Ford springs to the headlines again in the future, especially if discussions with Nissan and Renault do not produce any results.

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