GM , Ford and China ? Crazy but!
6 replies (most recent on top)
No one would want to buy GM. If one does that, a lot of people will lose their jobs.
Why do you think the US government will do anything to keep a domestic car industry?
We've let a lot of industries go to China.
If China wanted to buy GM or Ford, no one would stop them.
The Ford family holds Class B shares that controls 40% of the voting power. The majority of Class B shares are held in voting trust that is controlled by members of the Ford family.
Any merger would have to sort all that out either by allowing the Ford family the same kind of leverage in the merged company which "ain't gonna happen" or they (Fords) get bought out or enough of the commons to for the merger.
For the last to occur 51% of the commons would have to vote in favor.
Short of a fire sale it's hard to see any of this occurring.
Here is a piece of info for you - electric cars contain only 20% of the total part count if compared to ICE. You go and figure how many car manufacturers well need.
Another consideration is China - I have a feeling they will go with a single state owned car company (maybe two) and will, due to the economies of scale, destroy everyone. Granted, we'll want to have domestic manufacturing, so we'll protect. The question is how many companies protect? My hunch is TWO.
Oh, my head is gonna explode, too much strategic high level abstract thinking.
F--- it, just give me my paycheck.
I think that's a real possibility, because US needs at least one such company (ie, controlled by US) for strategic reasons, so one will be propped up till the cows come home. I think we need more than one.
Never going to happen