GM in talks with Ford, Chrysler to share efforts
DETROIT — As part of its increasingly urgent efforts to conserve cash, General Motors has held talks about sharing vehicle platforms with Chrysler and developing engines with the Ford Motor Co., according to people with knowledge of the discussions.
The talks, while considered exploratory, underscore the immense pressure that GM, Ford and Chrysler are under to keep cutting costs.
Despite the many plant closings and the buyouts that have sharply cut payrolls, the industry faces increasingly grim prospects because of the softening economy and the inability of prospective customers to get loans. The automakers are once again fending off questions about the possibility of bankruptcy.
Such deals on sharing platforms or engine technology between rival Detroit automakers would be highly unusual if the companies were financially healthy. But auto sales in the United States have fallen to their lowest level in 15 years, and the automakers are burning through billions of dollars in cash to finance operations during the downturn.
GM and Chrysler have been talking about teaming up on vehicle projects that each company cannot afford to do alone, according to people who requested anonymity because of the delicate nature of the discussions.
No deals have been reached, but the projects could potentially mean big savings for the automakers.
A GM spokesman declined to comment on any specific talks with Chrysler. "Without referencing this specific rumor, as we’ve often said, GM officials routinely discuss issues of mutual interest with other automakers," said the spokesman, Tony Cervone. "As a policy, we do not confirm or comment publicly on those private discussions, which in many cases do not lead anywhere."
There was no immediate comment from Chrysler, which is owned by the private equity firm Cerberus Capital Management.
Chrysler executives have been pursuing a variety of joint ventures with other automakers around the world. The company has agreed, for example, to build pickup trucks for Nissan Motor of Japan, while Nissan will make a compact car for Chrysler.
In the case of GM and Ford, the automakers collaborated in 2002 on an automatic transmission that is in vehicles like GM’s Saturn Outlook and Ford’s Edge.
Now the companies are discussing further engine-related projects, people with knowledge of the talks said.
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