Thursday, October 16, 2008
Merger talks boost GM and Ford
Shares in General Motors and Ford have accelerated after weekend reports that they had held merger talks with each other and with Chrysler.
Although, no firm link is thought to be imminent, investors were buoyed by the prospect of a giant American carmaker that could withstand better the intense pressure of a weak global market.
In the first official comment on developments, Bob Nardelli, Chrysler's chief executive, told staff that he was talking to a number of parties about potential tie-ups.
Ford declined to comment, but a GM spokesman said: "GM officials routinely discuss issues of mutual interest with other automakers. As a policy, we do not confirm or comment publicly on those private discussions, which, in many cases, do not lead anywhere."
However, the Daily Telegraph has reported that talks between GM and Cerberus, which owns 80% of Chrysler, and fuelled the weekend merger speculation had stalled.
DATED: 16.10.08
FEED: AW
