Vauxhall, Saab, Chrysler to become stable-mates ?
What Car is reporting that the credit crunch could force car giants General Motors and Chrysler to merge. GM owns the Saab, Vauxhall, Cadillac, Chevrolet, Corvette and Hummer brands, and Chrysler owns Dodge and Jeep. It seems that the public can't get the loans they need to purchase cars.
The two US-based companies are in talks to join forces, and save money by sharing administration and infrastructure costs, as well as developing cars on the same platforms in the future. Both companies have suffered heavy recent financial losses - According to ABC News, "GM reported a stunning $15.5 billion second-quarter loss.". The current decline in car sales in the face of global economic gloom and rising environmental awareness has had a further impact. While talks are still ongoing, any sale would not affect the rights of the owners of cars built by either manufacturer.
Ford and Mazda
Ford is also reported to be considering selling its stake in Mazda. Ford owns one-third of Mazda, which is profitable and reported to be worth around $1.3 billion (about £750 million). Ford would use the money raised to help fund its troubled car sales operations in America, which have lost almost $24 billion since 2005.
According to ABC News, "Ford posted its worst-ever quarterly performance in July, with an $8.67 billion loss". The article linked also alleges that GM were interested in merging with Ford, before setting their eyes upon Chrysler.
This report was compiled by Justin Woodcock on behalf of Find-a-Part - Car Parts Search specialists since 1978.
