In recent meetings at General Motors, executives have tossed around the idea of a GM and Ford merger but also noted the company (Ford) has similar problems just like General Motors does. "I don't think a merger is likely," says David Cole, chairman of the Center for Automotive Research. "But you'll see a lot of options considered if they think bigger problems will come by". Analysts say that a General Motors and Ford merger would have "huge pros and cons", combining the two giants into one with more than $350 billion dollars in revenue, $50 billion in cash, and billions in overhead costs. However such a merger would still not solve our existing problems, which include high fuel prices, gas guzzling vehicles, weak vehicle brands that are in need of repair (for example Hummer), and employment losses in North America. The merger would also be incredibly complex and unreasonable. But overall, the whole debacle during the past couple of meetings in GM's Suite-C begs the ultimate question: How desperate are Detroit's big three automakers becoming?

Source: Business Week