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GM Merger with Ford Looks Likely

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May 29, 2019—Recently Fiat Chrysler Automobiles announced a possible merger with Renault.

Deep trouble at Ford Motor and General Motors' need for more heft to compete with rivals Toyota and Volkswagen make a marriage between the two largest car companies increasingly probable, according to an opinion editorial piece by MSN.

According to the report:

While GM and Ford both have a strong market share in the United States, Ford has stumbled. It has withdrawn most of its sedans in the American market because sales have shifted from cars to sport utility vehicles, crossovers and pickups. Ford's only bright spot in the United States is its F-Series full-sized pickup, which is the top-selling vehicle in the nation. GM's are strong, but it is up against other car companies, both local and global, that need the largest car market to be successful.

Ford's management, under CEO Jim Hackett and Executive Chair William Ford, has shown it can cut costs. It recently cut 7,000 white-collar workers. That will save $600 million. Hackett has set total savings of $14 billion for the five-year period that began last year

GM is better regarded than Ford, primarily because of the work of CEO Mary Barra. She has been CEO of GM since 2014. It also has cut costs. However, many outsiders believe it is ahead of most of its rivals in both the electric and self-driving car businesses. GM owns 75 percent of Cruise Automation, a leader in artificial intelligence of future cars.

 

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