DETROIT -- Before General Motors began exploring a possible merger with Chrysler -- talks that first came to light on Friday -- G.M. proposed a similar deal with its other cross-town rival, the Ford Motor Company, two people with knowledge of the talks said Saturday. G.M. executives approached Ford about a possible merger in July, but Ford rejected the idea and ended the discussions last month, these people said.After Ford decided to remain independent amid an increasingly difficult auto market, G.M. turned its attention to Chrysler. For the last month, it has been in preliminary merger talks with Chrysler's owner, the private-equity firm Cerberus Capital Management.A deal is not certain, but people with knowledge of the talks described the chances of it happening as "50-50."
DETROIT -- Before General Motors began exploring a possible merger with Chrysler -- talks that first came to light on Friday -- G.M. proposed a similar deal with its other cross-town rival, the Ford Motor Company, two people with knowledge of the talks said Saturday.
G.M. executives approached Ford about a possible merger in July, but Ford rejected the idea and ended the discussions last month, these people said.
After Ford decided to remain independent amid an increasingly difficult auto market, G.M. turned its attention to Chrysler. For the last month, it has been in preliminary merger talks with Chrysler's owner, the private-equity firm Cerberus Capital Management.
A deal is not certain, but people with knowledge of the talks described the chances of it happening as "50-50."
A commentator at the note on the proposed merger at Matthew Yglesias' blog says:
The ramifications of the merger would be enormous in the global auto industry. G.M. and Chrysler together would control more than 35 percent of the United States vehicle market, and be by far the dominant producer of pickup trucks, sport utility vehicles and minivans. Awesome. Together with their market shares in whale oil and harness-making, that should really . . . fail.
Awesome. Together with their market shares in whale oil and harness-making, that should really . . . fail.
