auto majors General Motors and Ford have discussed a
partnership and possible merger, according to influential
US-based industry publication Automotive News.
The report published today quoted unnamed sources familiar
with the talks.
the report adds that the two companies are not holding
any talks at present and that it is not at all clear
whether the negotiations will lead anywhere. One of
the sources for the story said there is only a slim
chance that anything will come out of the discussions.
an alliance or merger between the two companies happens,
it would shake up the global auto industry. Such an
alliance would be the global industry leader, with a
wide margin over second-placed Toyota Motor.
an alliance would also ring the curtains on discussions
for a three-way alliance between GM, Nissan Motor of
Japan and French auto manufacturer Renault. These discussions
were initiated in July this year and any progress in
these talks is not known.
GM and Ford have been facing a steady erosion of market
shares in the key US market for many years now. Both
companies have been reporting losses for the last few
years and are financially weak. Their model line ups
are outdated and both companies have considerable legacy
costs in the form of worker's benefits.
has recently announced a substantial restructuring of
its business and is planning to close down many plants
and lay off tens of
thousands of workers over the next few years. The company
has recently appointed Alan Mullaly, former head of
commercial aircraft division at Boeing, as its CEO.