Ford & GM had merger talks
I'll admit that this probably isn't anyone's first port of call for business news, and I'm not intent on making it so, but this story is a monster.
For what it is worth, the two behemoths are plagued by enormous pension etc responsibilities and far higher wages and less labour flexibility than their Japanese competitors - which do a lot of car building in the US, especially in the South. It is increasingly difficult for Ford and GM to compete on price under those circumstances, and if memory serves, it is only the finance arms which are keeping them afloat.
For what it is worth, the two behemoths are plagued by enormous pension etc responsibilities and far higher wages and less labour flexibility than their Japanese competitors - which do a lot of car building in the US, especially in the South. It is increasingly difficult for Ford and GM to compete on price under those circumstances, and if memory serves, it is only the finance arms which are keeping them afloat.
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on Monday, September 18, 2006 at 4:37 pm.
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by finance arms,I presume you mean the punters willing to take their new debt.
.....for the time being.Make no bones about it,they are in serious trouble for the reasons you've given.the Unions really are fiddling while detroit burns.
as is the US economy,theeir hosuing market is beginning to melt down,falling transactions,rising supply etc.get ready,go short,
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