GM, Ford Merger Appears Likely

May 29, 2019
Apparent trouble at Ford, plus General Motors' need for more heft to compete with rival OEMs, reportedly makes a marriage between the two largest car companies increasingly probable.

May 29, 2019—Recently, Fiat Chrysler Automobiles announced a possible merger with Renault. Now comes arguably bigger news: 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 MSN article, while GM and Ford both have a strong market share in the U.S., Ford has struggled of late. It has withdrawn most of its sedans in the American market because sales have shifted from cars to SUVs and pickups. Ford's only bright spot in the U.S. is its F-Series full-sized pickup, which is the top-selling vehicle in the nation. GM is fairing better, 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, a move which will save $600 million.

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.

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