General Motors Corp. approached Ford Motor Co. about a possible merger prior to contacting Chrysler LLC, according people close to the situation.
Though there were direct communications between GM CEO Rick Wagoner and Ford CEO Alan Mulally, those talks never evolved into actual negotiations.
"There were never in-depth, substantive discussions that went on," said one of those sources, who spoke to The Detroit News on the condition of anonymity. "It was more an expression of interest, as in, 'Do you want to talk?' "
Ford said no.
The Dearborn automaker would not officially comment on the reports, but sources familiar with Mulally's thinking on the topic told The News that such a tie-up would be contrary to his plan for saving Ford.
Mulally wants to simplify Ford's own operations and better integrate them on global scale. He wants fewer brands and fewer dealers. And he is jealously guarding Ford's cash reserves, which have so far insulated the Dearborn automaker from the bankruptcy speculation swirling around GM.
Adding more brands, more factories and more dealers just does not make sense in this environment, those sources said.
Mulally has repeatedly pointed to rival Toyota Motor Corp. as his model for success, noting that Japan's largest automaker competes successfully around the world with just one major brand and closely integrated global operations.
Reports that GM had contacted Ford first surfaced in the New York Times earlier today.
Ford contacted GM two years ago to discuss the idea of merging some elements of their operations, such as purchasing and information technology, but those talks never panned out.
As The News first reported in August, GM contacted Ford this summer to discuss possible collaborations on powertrains, vehicle architectures and other areas. The two companies have had several meetings to discuss the joint development of engine technologies, but have so far nor reached any concrete agreement.
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