Volkswagen Considers Using Ford's Excess Plant Capacity In Alliance

Actually a win win...VW gains from not investing more heavily in its home high cost labor market and Ford plants become more efficient while learning some tips from Germany on quality.

Interesting That GM never thought about an arrangement like this...

Ford simply has better quality control than VW so that's a win. VW also desperately needs the Ranger as an Amarok and it desperately need to leverage Ford for crossovers. The old Explorer is better than the new-ish Atlas and the new Explorer is going to be that much better. Similarly, the Tiguan simply isn't as good as the ancient Escape and the new Escape will be that much better. VW needs an Edge. That's what Ford can bring to the table and it's considerable. What Ford gets from VW is mainstream EVs and building Ford and VW EVs will greatly reduce unit cost. That's what VW brings.

As for GM, they should buy Jeep/Ram/Dodge/Chrysler. Relinquish Buick to China and drop it in the USA Kill Chrysler. Fold Ram back into Dodge. Then merge with Volvo/Proton/Geely.

009. I had the exact same thought. GM under Barra seems intent on shrinking its way into profitability. That never works in the long run. GM desperately needs growth. They seem to be growing in China. But where is the growth in USA? When was the last time they had a blockbuster model in the states?They aren't thinking outside the box. Ford/VW has some of that thinking.

GM buying USA FCA is repeating the 50's Nash/Hudson or Studebaker/Packard. Two sickies don't make one healthy company. Actually FCA USA was able to pull off dropping sedans because RAM/Jeep growth could absorb the plant capacity. GM doesn't have that. Worse its lead product looks to be in trouble. I'd bet on the FCA USA team being better at dealing until they find a partner. GM is like the frog in a pot of water and the heat is growing. They don't get it.

Incorrect: "GM buying USA FCA is repeating the 50's Nash/Hudson or Studebaker/Packard. Two sickies don't make one healthy company."

It makes a lot of sense.

Ram could easily be offered as a brand to dealers that do not have full-sized trucks and the tremendous profit they represent.

Jeep co-branded with Cadillac and Corvette (as a brand) would give GM the premium products they need. Jeep could elevate to more a a Land Rover level.

Buick has no excitement and Dodge does, so ditch Buick to China. New Dodges off the Cadillac RWD architecture would be pure profit. The Charger and Challenger are excellent sellers.

THAT is called thing outside the box.

The GM/FCA thing is the source of a lot of speculation currently.

But Matt you have made a strong case that VW has too many brands. A GM/FCA merger puts GM right back into "too many brands" that GM fixed and VW has yet to fix. Plus their cultures are very different. GM as the dominant party would try to kill off the FCA part. NIH (not invented here).

GM would not acquire the idiot brands from Italy. Jeep, Ram, and Dodge are a total score. Buick is a dud in the USA. Relegate it to China. The problem with out GM was poor marketing focus. Jeep/Cadillac/Corvette is wise branding. Ram could easily be marketed by dealers that do not have full-sized pickups (i.e. Mazda dealers). Dodge could also be a floater. Kill Chrysler. Problems solved. Gains made.

Matt while I agree with alot of what you said, GM is too stupid and arrogant to do that. They're also shuttering plants to save $$ for what, more 'ehh" vehicles? They're a sinking ship and unfortunately the only thing that will save them IMO is dramatic changes in leadership and profound and expensive marketing. While Tim Mahoney VP Marketing Global Chevrolet is perhaps the best in the biz I cant tell you the last time I saw good marketing from Cadillac. The CT6 was put out there and I never saw a single commercial and don't remember any print ads either? The new XT4 commercials are decent but the dang car just came in 2nd to the Acura version of the HOnda CRV. I mean how pathetic is that? Their vehicles must be world class which means the thinking at the top must change so that they are global "leaders" in every market they compete in or they're only going to continue to lose market share. Perhaps Jack Welch will come out of retirement....?

Clearly Mary Barra has to go. That is the real issue. She is not proactive. She is not innovative. She does not promote GM. She does not bring an iron fist down on idiocy.

GM marketing it TERRIBLE. The Chevy commercials are asinine. Cadillac...dare greatly with dull cars. Buick...does Buick advertise?

I actually think it's quite likely that a Chinese entity (Geely? / SAIC/Nanjing?) could easily buy GM and the FCA.

A quick GM merger with Toyota would be smart.

The fact is that WORLDWIDE there will be a massive consolidation of car companies.

The Ford/VW coziness is all about avoiding the Chinese in Dearborn and in Wolfsburg.