Potential Merger / Alliance Scenario & Detroit Automakers Fight for Survival
Midwest Acurati
Joined: Apr 2004
Posts: 1,395
Likes: 0
From: Middle America
Not everyone wants to drive a Corolla. GM can build fairly efficient large engines; they are the best at making large engines efficient (not necessarily the most powerful, outside of the LS2 series).
Apathy Kills
Joined: Nov 2002
Posts: 60,714
Likes: 0
From: The Left Lane
TimesOnline [UK]: Renault-Nissan looks to Ford in quest for US tie-up
http://business.timesonline.co.uk/ar...391308,00.html
My first response is pessimism. :hsdunno:
If Renault is unwilling to commit funding to GM, then the heavy demands FoMoCo would seem intolerable. Interesting, nonetheless.
The Times
October 06, 2006
Renault-Nissan looks to Ford in quest for US tie-up
From Tom Bawden in New York
RENAULT-NISSAN turned the focus of its intentions to Ford yesterday as it signalled a determination to link up with a partner after the breakdown of talks with General Motors (GM).
The Franco-Japanese alliance, whose talks with GM failed on Wednesday, said that a North American partner remained the highest priority.
A spokeswoman for Renault said: “We remain convinced that the Renault-Nissan alliance could be extended to work with additional partners. From a strategic perspective and under the right conditions a North American partner could make sense.”
Ford is the last potential partner among the top three American carmakers, as Chrysler is now part of the German-US DaimlerChrysler group.
Toshiyuki Shiga, a senior Nissan executive, had earlier said that it would be “natural” to extend the alliance with Renault to include a North American company.
Ford declined to comment on the possibility of a tie-up. Three months ago Bill Ford, then the chairman and chief executive of Ford, approached Carlos Ghosn, head of Renault-Nissan, about a possible partnership in the event that the alliance’s talks with GM broke down.
But Mr Ford has since hired Alan Mulally from Boeing to be his chief executive, and analysts believe that it is unlikely that his new recruit would launch straight into merger talks with any of its competitors.
The talks between GM and the alliance, in what would have created the world’s biggest carmaking concern, collapsed on Wednesday after the two parties failed to agree the financing of a deal.
Renault had wanted a 20 per cent stake in GM, but the American carmaker said that it wanted compensation of several billion dollars.
It argued that most of the first significant savings of a merger would go to Renault. Renault said that a payment to GM would be “contrary to the spirit of any successful alliance”.
October 06, 2006
Renault-Nissan looks to Ford in quest for US tie-up
From Tom Bawden in New York
RENAULT-NISSAN turned the focus of its intentions to Ford yesterday as it signalled a determination to link up with a partner after the breakdown of talks with General Motors (GM).
The Franco-Japanese alliance, whose talks with GM failed on Wednesday, said that a North American partner remained the highest priority.
A spokeswoman for Renault said: “We remain convinced that the Renault-Nissan alliance could be extended to work with additional partners. From a strategic perspective and under the right conditions a North American partner could make sense.” Ford is the last potential partner among the top three American carmakers, as Chrysler is now part of the German-US DaimlerChrysler group.
Toshiyuki Shiga, a senior Nissan executive, had earlier said that it would be “natural” to extend the alliance with Renault to include a North American company.
Ford declined to comment on the possibility of a tie-up. Three months ago Bill Ford, then the chairman and chief executive of Ford, approached Carlos Ghosn, head of Renault-Nissan, about a possible partnership in the event that the alliance’s talks with GM broke down.
But Mr Ford has since hired Alan Mulally from Boeing to be his chief executive, and analysts believe that it is unlikely that his new recruit would launch straight into merger talks with any of its competitors.
The talks between GM and the alliance, in what would have created the world’s biggest carmaking concern, collapsed on Wednesday after the two parties failed to agree the financing of a deal.
Renault had wanted a 20 per cent stake in GM, but the American carmaker said that it wanted compensation of several billion dollars.
It argued that most of the first significant savings of a merger would go to Renault. Renault said that a payment to GM would be “contrary to the spirit of any successful alliance”.
If Renault is unwilling to commit funding to GM, then the heavy demands FoMoCo would seem intolerable. Interesting, nonetheless.
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HC Racer H5
Joined: May 2000
Posts: 4,261
Likes: 0
From: KCK
Renault/Nissan went to GM via Cancer Kirk's request. I am now correct in my assumption that GM would never do this alliance. I think GM & it's board of bystanders tanked this deal upfront asking for a very unreasonable amount of cash (they think $$ is the sole cure for their woes).
However, Ford is in worse position and falling fast with Toyota & GM about to introduce new full size pickups and drop F Series sales significantly (Ford's last bastion of easy profit). Ford is desparate and smaller so they'd require less money and they noted after the GM alliance deal was announced it was a better idea that Ford discuss with them.
We also have to note that GM & Ford talked about possibly aligning - which may make the most sense as they can work to have a combined 25% market share and do the following:
Make Pontiac an actual performance focused division: move the Corvette there and soley keep the Solstice (get rid of the Sky and Saturn), put some more Holden's in there at an affordable price and move the Mustang over and cancel the Camaro. Add a FWD hot hatch that actually has capability and not a rehashed corporate platform with a s/c bolted on and ss badging. Give it a real SVT treatment as they can do wonders with suspension tuning and handling. Make RWD the focus and performance. If they are really smart sell bare bones raceready cup cars and support a tiered amatuer racing series starting with fwd hot hatchs moving up to rwd v8 powered sports cars. (like Mini Cup - Porsche Super Cup)
Make Chevy the people mover - sell family focused sedans, wagons and CUVs. Get rid of any truck based derivatives.
Make Ford the low end car lot with Aveos, Cobalts, focii, hybrids and other frugal focused cars.
Make Cadillac the luxury / prestige division and move the town car over. No rebadged corvettes or the like. No more rebaged trucks either.
Make a GMC/Ford derivative the pickup & truck based SUV division. Move the rapper suvs over here and keep trucks where they belong. This would be the rugged division for macho men and dainty women who need big suvs to feel legit.
Make Volvo the euro flavored sedans and coupes for families (not Saturn...what are they thinking)
Kill off Buick / Mercury / Lincoln / Saturn
Sell off Jaguar / Aston / Saab / Rover
However, Ford is in worse position and falling fast with Toyota & GM about to introduce new full size pickups and drop F Series sales significantly (Ford's last bastion of easy profit). Ford is desparate and smaller so they'd require less money and they noted after the GM alliance deal was announced it was a better idea that Ford discuss with them.
We also have to note that GM & Ford talked about possibly aligning - which may make the most sense as they can work to have a combined 25% market share and do the following:
Make Pontiac an actual performance focused division: move the Corvette there and soley keep the Solstice (get rid of the Sky and Saturn), put some more Holden's in there at an affordable price and move the Mustang over and cancel the Camaro. Add a FWD hot hatch that actually has capability and not a rehashed corporate platform with a s/c bolted on and ss badging. Give it a real SVT treatment as they can do wonders with suspension tuning and handling. Make RWD the focus and performance. If they are really smart sell bare bones raceready cup cars and support a tiered amatuer racing series starting with fwd hot hatchs moving up to rwd v8 powered sports cars. (like Mini Cup - Porsche Super Cup)
Make Chevy the people mover - sell family focused sedans, wagons and CUVs. Get rid of any truck based derivatives.
Make Ford the low end car lot with Aveos, Cobalts, focii, hybrids and other frugal focused cars.
Make Cadillac the luxury / prestige division and move the town car over. No rebadged corvettes or the like. No more rebaged trucks either.
Make a GMC/Ford derivative the pickup & truck based SUV division. Move the rapper suvs over here and keep trucks where they belong. This would be the rugged division for macho men and dainty women who need big suvs to feel legit.
Make Volvo the euro flavored sedans and coupes for families (not Saturn...what are they thinking)
Kill off Buick / Mercury / Lincoln / Saturn
Sell off Jaguar / Aston / Saab / Rover
Last edited by jaje; Oct 6, 2006 at 07:10 AM.
Shift_for yourself
Joined: Jul 2002
Posts: 128
Likes: 0
From: TX
I don't think Ford and GM should merge. From a nation stand point we should maintain 2 domestic car makers. I think in the long run they will be alright,they just need to be more efficient with the factories and stop let the unions punk them, and stop spending all this money on healthcare and benefits. The products they have out now are pretty decent, they just need to stop going back to old habits and making they same car for each of their divisions. I think America is finally embracing some of that Euro shiz so they should make the cars a little more quirky and sporty.
HC Racer H5
Joined: May 2000
Posts: 4,261
Likes: 0
From: KCK
Recent News:
Cancer Kirk's Aide (Jerry York) has quit GM's Board
Cancer Kirk says won't up investment in GM
Ford talks with Nissan/Renault for Alliance however Alliance seen as unlikely
Ford Sees US Market Share drop further in 2007
My thoughts: Cancer Kirk (that's what I think of him as he does not care much about the companies he plunders but the money he makes) has given up on the GM Bureaucracy and the pathetic and lost board of bystanders. Kirk will likely cut his losses and (seems to be) come out even. This is a big hit to GM's stock price but in their best interest as to get rid of this cancerous tumor that's been trying to destroy it's host.
Ford is next on the agenda for talks but that will fail as Ford is not the best takeover target and they smell of desparateness when the union payoffs start coming on next year they'll lose billions.
GM / Ford will likely have a major meeting of the minds to merge and stop the bleeding market share - GM is currently 24% and Ford 15%...I see them looking to keep a combined 30%-35% market share whether they merge or not.
DCX is just hanging around with Chrysler rehashing as many models off their new platforms.
Cancer Kirk says won't up investment in GM
Ford talks with Nissan/Renault for Alliance however Alliance seen as unlikely
Ford Sees US Market Share drop further in 2007
My thoughts: Cancer Kirk (that's what I think of him as he does not care much about the companies he plunders but the money he makes) has given up on the GM Bureaucracy and the pathetic and lost board of bystanders. Kirk will likely cut his losses and (seems to be) come out even. This is a big hit to GM's stock price but in their best interest as to get rid of this cancerous tumor that's been trying to destroy it's host.
Ford is next on the agenda for talks but that will fail as Ford is not the best takeover target and they smell of desparateness when the union payoffs start coming on next year they'll lose billions.
GM / Ford will likely have a major meeting of the minds to merge and stop the bleeding market share - GM is currently 24% and Ford 15%...I see them looking to keep a combined 30%-35% market share whether they merge or not.
DCX is just hanging around with Chrysler rehashing as many models off their new platforms.
Last edited by jaje; Oct 9, 2006 at 06:51 AM.
HC Racer H5
Joined: May 2000
Posts: 4,261
Likes: 0
From: KCK
New grumblings: Kirk may make a proxy fight to vote out the Board of Bystanders
Things are certain that Cancer Kirk is pissed and will create a major fight (remember what he did with Chrysler and his failed overtaking and lawsuit for the "merger of equals")
Things are certain that Cancer Kirk is pissed and will create a major fight (remember what he did with Chrysler and his failed overtaking and lawsuit for the "merger of equals")
HC Racer H5
Joined: May 2000
Posts: 4,261
Likes: 0
From: KCK
Ford Cuts Benefits and Delays December Salary Payments
This majorly devastating news that Ford has to delay its white collar salaried employees paychecks for December.
Link
Link
Originally Posted by Reuters
- Ford Motor Co. (F.N: Quote, Profile, Research) is cutting benefits for U.S. salaried employees as it struggles to conserve cash after a $7.2 billion loss so far this year.
Ford is scaling back health care benefits, raising premiums, eliminating merit pay for 2007 and delaying December paychecks by one week, Ford spokeswoman Marcey Evans said on Thursday.
"We are working hard to ensure we continue to provide competitive total compensation to our work force, while attacking our uncompetitive cost structure, including employee health care costs," Mark Fields, head of the automaker's Americas unit, said in an e-mail to employees on Wednesday.
The cuts come after Ford last week posted a third-quarter $5.8 billion loss, its largest in 14 years, as it absorbed restructuring charges, operating losses and asset write-downs. Ford lost $1.4 billion in the first half of the year.
Ford has warned that operating results would weaken in the current quarter and cash flow would remain negative in the coming few years as it closes 16 plants and slashes nearly 45,000 jobs to turn around its North American unit.
Evans said Ford will eliminate health insurance for Medicare eligible retirees in 2008 and raise health care premiums in June 2007 for employees by about 30 percent, the second straight year of increase.
The No.2 U.S. automaker also will replace its traditional health coverage for salaried retirees over 65 with a $1,800 annual stipend that they can use to buy supplemental health coverage in addition to government-run Medicare.
Ford will stop paying for any health care coverage for dependent children of retirees who are over 65, Evans said.
In addition, this year, all hourly and salaried employees will also see their year-end paycheck delayed by one week.
Ford is scaling back health care benefits, raising premiums, eliminating merit pay for 2007 and delaying December paychecks by one week, Ford spokeswoman Marcey Evans said on Thursday.
"We are working hard to ensure we continue to provide competitive total compensation to our work force, while attacking our uncompetitive cost structure, including employee health care costs," Mark Fields, head of the automaker's Americas unit, said in an e-mail to employees on Wednesday.
The cuts come after Ford last week posted a third-quarter $5.8 billion loss, its largest in 14 years, as it absorbed restructuring charges, operating losses and asset write-downs. Ford lost $1.4 billion in the first half of the year.
Ford has warned that operating results would weaken in the current quarter and cash flow would remain negative in the coming few years as it closes 16 plants and slashes nearly 45,000 jobs to turn around its North American unit.
Evans said Ford will eliminate health insurance for Medicare eligible retirees in 2008 and raise health care premiums in June 2007 for employees by about 30 percent, the second straight year of increase.
The No.2 U.S. automaker also will replace its traditional health coverage for salaried retirees over 65 with a $1,800 annual stipend that they can use to buy supplemental health coverage in addition to government-run Medicare.
Ford will stop paying for any health care coverage for dependent children of retirees who are over 65, Evans said.
In addition, this year, all hourly and salaried employees will also see their year-end paycheck delayed by one week.
I missed Sean
Joined: Aug 2004
Posts: 11,285
Likes: 1
From: Fairfield/Bridgeport CT
at least they are announcing it now... though i could see some people still having problems...
honestly-- you shouldn't have to wait an extra week to get paid when you've waited all year
honestly-- you shouldn't have to wait an extra week to get paid when you've waited all year