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December 27, 2008

A GM-Ford merger?

Twentieth-century management guru Peter Drucker wrote 10 years ago in the Wall Street Journal that GM would cease to exist in 10 years. In the last 20 to 25 years, the Big Three have manufactured vehicles that have not been pleasing to the buying public because of quality, warranties and price.

Japan and other manufacturers came to the U.S., and their automobiles have become superior to American-made. Since the 1950s, the American autoworkers’ union has continued to call for worker strikes for excess concessions: wages, health, retirement and time-off benefits. Now the companies cannot compete. Auto management and union staff have failed to understand the principles of competition.

If the American industry can survive, perhaps a GM and Ford merger could become a viable global auto company. Chrysler would fail or merge with another.

The important lesson to be learned by all: Don’t take the American auto buyer and the “bailout”-lending public for fools. They are not.

J.T. Heeter
Shawnee

Comments

Dan Beyer

When I first started driving, all I bought were domestic cars. And kept having to fix them as they sat broke down in my driveway. Then I got a good deal on a Honda Civic. In the time I've had two Hondas, I would have went through twenty domestic vehicles!

NoMoreMrNiceGuy

Why would Ford want a piece of a heavily debt ridden entity that bring nothing innovative to the table? Nissan took a look at possibly merging with GM and decided not to venture into that mess, who can blame them. When GM starts building tiny, two-seater green cars that everyone is demanding, then they might be able to capture all of us consumers that currently do not purchase vehicles because no one is building what consumers want.

T. Hanson

From where I stand, Ford is not too bad. Yea, they don't plan to show a profit in the next year, but they have yet to take any government loans. I don't see why Ford would be interested in taking on this anchor.

Now GM, and Chrysler move would be one that I could expect. By the way for those that have time to kill today I found this interesting list of the top 10 cars that really hurt the image of GM. I am not anti-GM, but I can sure see why people have a sour taste.

http://www.popularmechanics.com/automotive/reader_rides/4293188.html

 
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