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It Can Happen!

Luke Adkins
Dr. Greg Hoffeditz
Undergraduate Management Cluster
9/28/2006
It Could Happen!
Rumor has it that two of the largest automobile manufacturers in the United States could possibly merge, or at least form a partnership.   The two giants are Ford Motor Company and General Motors.   This is a very radical idea, given that the two have been intense competitors for the past century.   While both companies are actively trying to change their old-school ways, the idea of a merge or alliance has many pros and cons.
The possibility of a merge seems very unlikely at this point.   Experts predict that a merge could take up to ten years to complete and create a large number of secondary issues that would need to be resolved as well.   One of the major issues of a merge is how many brands both of the companies would continue to operate.   One would have to believe that some of these brands, such as Ford's Lincoln/Mercury division and General Motor's Pontiac and Buick divisions would not make the cut if a merge was to take place.  
Another major hang up in a merge would be the possibility of loss of jobs between the two companies.   If brands were to be cut, then it is almost certain that   plants would close.   That would be devastating for the company's work force, because both companies have already started closing manufacturing plants across the country.   Both of the manufacturers are suffering financially due to high wages and extremely generous health benefits.
Ford's and General Motor's poor financial standing right now is another reason why the merger is highly unlikely.   A merger of this magnitude could take a decade to complete and that means that both companies could expect a rough transition period.   Analysts are not sure that either company could stay afloat long enough to make it through a lengthy transition period.   With foreign manufacturers already taking a huge share of the American automobile market, it is not likely that Ford or General Motors could...