James Joyner of Outside the Beltway notes:
It was not all that long ago that there were four major American automakers–GM, Ford, Chrysler, and American. Chrysler bought AMC solely to acquire the Jeep badge and Chrysler merged with German DaimlerBenz years ago.
It also wasn’t that long ago that President Jimmy Carter, concerned about losing all the jobs that Chrysler represented, signed into law the remarkable loan guarantee engineered for the company by then-CEO Lee Iacocca. Can you imagine the rent-seeking possibilities of a combined GM-Ford?
I believe that Chrysler was also after the small-car distribution deal AMC had with Renault, which the French refused to honor. They also kept some AMC facilities, notably the Belvedere, IL factory and a distribution center in Kenosha. The guaranteed loan was to address short-term cash-flow problems, which I believe resulted in part from the Renault issue, and the loan was payed off without calling on the Federal guarantee. GM-Ford’s money problems are structural; they will have a hard time convincing the nation a loan will solve them.
I have to admit that a “Mustang SS” or “Camaro GT” would be interesting to see.
I agree though, I don’t see any synergy between the companies.
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