Re: Packard-Stude Merger vs. Ford-General Motors Merger

Posted by Dan On 2011/10/12 13:17:14

I think the difference NOW is that vast amounts of due diligence would be exercised. Swarms of accountants and lawyers would pore over every financial and legal angle.

In the end, I wonder if this wouldn't be considered an antitrust violation.

There are also big differences in economies of scale. PMCC and Studebaker were tiny compared to GM and Ford. Despite all the red ink, GM and Ford had FAR more resources than Packard and Studebaker had then. This makes it MUCH more possible, IMHO, that such a merger would actually work if not shot down by the gov't.

If I recall my automotive history correctly, back in the day Billy Durant wanted to buy Ford, but balked when Ford insisted on cash rather than stock.