GM and Ford merger was discussed

A merger of U.S. automakers General Motors and Ford Motor was discussed, but shot down at a recent management meeting at GM, according to an article in the July 7 edition of Business Week.

The idea was floated by a senior GM executive, but set aside as such a deal could be a huge distraction and double many of the numerous problems that both companies are facing, said the report, citing someone familiar with the discussion.

However, such a deal would have some merit, as merging the massive overheads of both companies could save billions and their combined cash hoard of $50 billion could help them weather the downturn in automotive sales, the article said.