Ford And FCA Talked M&A — What Union Do YOU Think Would Actually Be Mutually Beneficial For Ford And A Partner?

Yesterday, a story emerged about Ford and Fiat Chrysler Automobiles (FCA). The gist?

Something that's a bit surprising, but gives the auto sector a glimpse of what's to come, according to the narrative Ford considered a merger with FCA. And it wasn't just a "one and done" conversation, apparently.

Although I am having difficulty seeing the synergies, this didn't slow Ford down from having those talks.

That said, it got me thinking? WHO would YOU like to see Ford strike a deal with to produce some of the world's best automobiles?

The heads of Ford Motor Co. and Fiat-Chrysler Automobiles once broached the subject of a merger, although it was quickly decided such a tie-up wasn’t practical, according to Ford's Executive Chairman, Bill Ford.

"Sergio [Marchionne] and I had a number of dinners together talking about this and whether Ford and FCA would be a good fit," Ford told Automotive News on the sidelines of the EcoMotion mobility conference here on Tuesday...

..."The timing certainly wasn't ideal," he said. "We had our own issues and challenges ahead of us. I felt like it wasn’t going to help us solve those problems. If anything, it might have slowed us down..."
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runninglogan1 - 6/12/2019 3:48:44 AM

-1 Boost

The investment in Rivian is very promising.

MDarringer - 6/12/2019 8:36:01 AM

+1 Boost

The investment in Rivian is 100% about avoiding a lawsuit when the F150e comes out. Like Tesla, Rivian has no game-changing rechnology, but Rivian could see deep pockets at Ford and sue like a bitch in heat. Basically, Ford paid Rivian to shut up and go away.

runninglogan1 - 6/12/2019 10:36:43 AM

-1 Boost

That's the dumbest thing I ever heard. Lol.

MDarringer - 6/12/2019 4:34:19 PM

0 Boost

Actually, no. You apparently do not listen to yourself. You're so not the sharpest tool in the shed. Open your ears.

runninglogan1 - 6/12/2019 6:51:21 PM

+2 Boost

Ford is afraid that a company that has "no game changing rechnology"[sic] is going to sue them for no reason so instead they proactively pay them $500 million? Lol. Can you possibly be that stupid?

MDarringer - 6/12/2019 10:50:58 PM

0 Boost

I'll explain it to you because you're so utterly dumb.

Ford is Goliath and stands to make a FORTUNE off the F150E.

If Rivian were not under their control, Rivian could throw frivolous lawsuits to siphon off some of Ford's money.

By investing in Rivian, Ford essentially silences them.

By dumping the amount they did into Rivian, they gain major PR for supposedly supporting new technology.

If Rivian tanks, they have a business loss they can write off.

If Rivian actually builds anything, Ford can sell the vehicles through Lincoln dealers for another win.

It is ROUTINE for a large company to buy into a smaller company that might be a lawsuit queen to shut them up.

THAT is how business works.

runninglogan1 - 6/13/2019 12:24:28 AM

+2 Boost

You think Ford wrote a check for $500 million to avoid frivolous lawsuits from Rivian? Look up the word frivolous - you clearly don't know what it means.

I guess Workhorse should be expecting their check from Ford for $500 million any day now.

Ford bought in to Rivian because they find their new products exciting and they want a piece of the action. Smart move.

PUGPROUD - 6/12/2019 5:35:36 AM

+1 Boost

Horrible idea. Both companies cash poor. Overlap in trucks likely won't get past DOJ unless that's the very point, spin off RAM to provide dearly needed cash. Just don't see how it would work other than buy a little time and hope another suitor comes along.

MDarringer - 6/12/2019 7:44:43 AM

+1 Boost

Ford/VW is brilliant.
FCA/Hyundai-Kia is brilliant.
Ford/Honda would be brilliant.
FCA/GM could work as long as Mary Barra is kicked to the curb.

xjug1987a - 6/12/2019 10:43:28 AM

+1 Boost

Yes, I was going to say Ford/Honda would be terrific. Honda is a great company that brings alot to the table as I think Ford does. Great merger... I think Ford should have held onto Mazda and had them do all small cars and small SUV's.

Though the Piech family is out of VW the Germans think they know everything and that mentality will clash with the Ford Family. VW, I say will likely always stay in charge and absorb anyother... I don't see Ford and FCA, I just don't think the product mix benefits Ford very well? Possibly JV in platform development and other systems?

GM and Hyundai would be an exremely powerful force but again the Koreans are Patriarchal and I don't see that working with US based board of directors, etc. The new company would need to be based outside of the US. No question Mary Barra needs to not be fired but tarred and feathered...

The dead FCA/PSA/Nissan merger would have brought alot of benefits especially w/development costs. I don't think its actually completely dead, I think they're trying to get around the French Govt.

valhallakey - 6/13/2019 12:43:20 AM

+2 Boost

I don't see the Ford/Honda being brilliant, explain??? The rest seems clear and makes some sense to me...

qwertyfla1 - 6/12/2019 9:57:24 AM

+2 Boost

No UNION is EVER beneficial as they are nothing but business killing cancer and are no longer needed with today's modern day labour & Health and Safety legislation. Time to decertify the unions as they are nothing more than strong arm mafia extortion and should be outlawed as they make workplaces toxic towards management (us vs them) and unproductive at best.

MDarringer - 6/12/2019 4:35:58 PM

0 Boost

God you're stupid. Did you not read the post?

qwertyfla1 - 6/12/2019 4:49:56 PM

0 Boost

Oopsy wrong thread but you don't have to call me God. I will try to live up to your perfection standards going forward OK great one?

malba2367 - 6/12/2019 3:21:04 PM

+2 Boost

Ford plus VW is an unstoppable combo. VW in a couple years VW will be #2 worldwide in BEV with a short path to #1, combining this with Ford's unmatched knowhow in mass producing aluminum vehicles will lead to EVs with class leading range. Their strengths match up almost perfectly...VW has a strong position in small cars and luxury vehicles, while Ford owns the pickup truck and commercial van markets.