What do you think about a merger between Ford and GM?

Question

I like the idea but worry that it would draw the ire of anti-trust groups for being a monopoly. But when we consider our flooded domestic market of imports, I don't think America has much of a choice.

I grew up in the rust belt and could never buy a foreign made automobile. I hope American companies get with the program and start offering more fuel efficient models that still have American style.

It makes me upset to see that the US economy is not a manufacturing economy any more. We need to get that back.

Answer 1

Anti-trust laws aside, merger of two losers will only make a bigger loser. The problems of domestic auto manufacturer is complex. A lot of them can be traced back to the US consumers themselves.

1. The US consumers want big cars and big cars using up gas. Just look at at the parking lot at the local supermarket and you will see more SUVs than anything else. The Hummer was seller like hot cakes. So, the manufacturers rushed in to fill the need. Then the first round of oil price increase, sales of those cars drop like a rock. But then, cutting production on the assembly line is very difficult and extremely costly. You see this cycle all through the American automobile industry. Seventy five bucks to fill up a tank? we only have ourselves to blame. If we don't want them, they won't make them.

2. Perceived poor quality...the quality of American auto industry has increase substantially yet it has not shaken its poor quality image. It think it has a lot to do with its marketing strategy. With little population growth and just about everyone who needs a car has one, new sales has to come through replacement. So we change models instead. Their marketing strategy is to make the car a disposible item every four to five years through "new and improved" styling regardless of the condition of the car. So we justify our new purchase by convincing ourselves that the car is getting ready to go any day now especially the loan is just about paid off.

3. High labor cost. While US manufacturers loses its market share in the high end because of the perceived quality issue, It is also losing sales on the low end foreign cars who enters the US market with significant lower labor cost abroad.

Answer 2

The merger won't help all people interior the long-term. It won't make experience to run 2 automobiles from the same enterprise in Nascar. stay sparkling of may well be on its deathbed so a approaches as being a nameplate. next undertaking you recognize Pepsi and Coke will merge. stay sparkling of hasn't precisely had a brilliant twelve months in Nascar besides. the way issues are headed, there'll purely be a million automobile enterprise left in u.s. whilst Ford and GM finally merge at the same time in some years.

Answer 3

one word: monopolyyyyyyyyyyyyyyy!

Not in favour. They're too good as separate entities. And you're right about not being able to get the nice barage of foreign cars that y'know...we like. But yeah, I reckon the only reason they're merging is because GM isn't doing so well these days. That's my guess anyway.

On a similar yet completely different note...this question reminds me of that White Stripes song "The Big Three Killed My Baby" Good song.

Answer 4

cant see how merging to pretty poor companies into one would save either........they need to learn how to make cars that do not break down, do not fall apart after a few years, etc etc as well as the old make them run better on less fuel............how come if the foreign cars can do it, the home based ones can not / will not etc etc For instance you try selling a GMC or Ford car with 950000 on the clock and see what the do for you [after they have finished wiping tears of laughter from eyes] yet sell a Honda at that mileage and you still get a good price / deal.

Answer 5

I think it wouldn't have a snowball's chance of getting past regulatory review.

Most "foreign" brands make their cars for the U.S. market in the U.S. anyway, so the distinction between foreign and domestic brands is mostly moot these days.

Answer 6

Sounds like Iraq war, US-UK get together to war against Iraq for oil. Now GM-Ford will get together against foreign car makers to get market!
They have fooled customers by not improvong quality, poor warranty and after sales service.

Answer 7

I agree with you. But I wasn't aware of their merger. I drive foreign cars.

Answer 8

The very same laws you mention would prevent it.

Answer 9

Never happen.