Lutz: GM Still Open to Alliances

[Variance]

Lutz: GM Still Open to Alliances

No. 1 U.S. carmaker General Motors is open to an alliance with its No. 2 rival Ford, Vice-Chairman Bob Lutz said in a newspaper interview on Sunday.

Asked whether GM would choose to go it alone or merge with Ford, Lutz said, "We are open to alliances. But we can also be successful alone."

Lutz spoke in an interview in the Swiss newspaper SonntagsZeitung.

Both Ford and GM are restructuring North American operations to adjust to a loss of market share in their home markets. GM is attempting to recover from a $10.6 billion loss in 2005.

Lutz said GM remained open to a smaller deal with Renault-Nissan after GM declined to pursue a larger tie-up with the French-Japanese group.

"We would have been in agreement with a smaller deal on engines, and we still are today," he said.

After nearly three months of talks, GM, Nissan and Renault said in October that they would end their discussions on a possible partnership.

Lutz told the newspaper that GM would have benefited from the proposed alliance far less than Nissan and Renault.

Reuters

[Dragon]

here we go again

[Drew Dowdell]

and... the stock tanks....

[turbo200]

hmmm seems like a mountain out of a molehill....he said "we are open to alliances", which could mean everything from an engine alliance to a merger, except a merger is always a merger. doesn't seem like too big of a deal. and what a stupid question to ask, are you gonna merge with ford?, ya, are you gonna commit business suicide mr. lutz?