Both Barra and Farley know their days in China are over. GM in recent years depended on China for all profits. GM made no profit on vehicle sales of any model in the USA.
Both Ford and GM grew to greatness by absorption of smaller companies. They are now apparently seeing corporate catastrophic failure as a real and inevitable possibility. Merging is the salvation and EV collaberation is the pathway
1 + 1 = 0 in this case.
Even if they merged they could not withstand a frontal assault by China. The Unions would not budge.
GM sought to merge with Ford in 2009 but they were turned down. It wouldn’t have made any difference.................
“”If there’s ways that we can partner with others, especially on technologies that are not consumer-facing, and be more efficient with R&D as well as capital, we’re all in,” GM CEO Mary Barra told investors “
It sounds so well-meaning, but shouldn’t common sense at a default level transcend any “new normal(s)” or is this supposed to be some kind of new global industrial “common sense”?
Western auto manufacturers are in trouble mainly because of restrictions placed upon them by western governments. China’s manufacturing is flourishing specifically because there are none of those restrictions, and the wages are borderline slavery-level.
Tariffs and other importation taxes combined with firm enforcement of vehicular safety standards are the only way to level this playing field, and incidentally the correct and constitutionally mandated method of raising money to operate the fedgov.
We all know that this will NEVER happen, though.
How do they plan on competing on labor cost $29, US opposite $4.20 to $19.
Can you say kowtow, boys and girls?
I knew you could!