What if Ford and General Motors merged? The result would be a global automotive machine so inconceivably huge rivals like Toyota and Volkswagen might not even think of challenging it. And it would be awash with cash, and profits, cutting tremendous expenses at both automaker from research and development all the way to accounting. At least this was the plan proposed by General Motors CEO Rick Wagoner in a private meeting with Ford executives in the summer of 2008.

This shocking revelation is the latest to come from New York Times auto writer Bill Vlasic, in an except from his new book ‘Once Upon a Car: The Fall and Resurrection of America’s Big Three Automakers — G.M., Ford and Chrysler’, set to be published tomorrow.

Seeing it for the desperate move it was with GM out of cash and burning through one billion dollars a month, Ford Chairman Bill Ford and Chief Executive Alan Mulally flatly rejected Wagoner’s appeal. Later on, Wagoner even admitted he understood why.  “But sitting in their shoes, I could understand why they didn’t want to do it,” he said.

The rest, they say, is history, with GM filing bankrupcty protection papers and then emerging from the complex process having slashed $48 billion in debt and obligations, able to once again generate a profit without looming debt payments eating up all its cash.

Yet as shocking as this news is, implications from the book may have more lasting effects. “There was something missing among Mr. Wagoner, Mr. Lutz and Mr. Henderson [CFO], some chemistry or cover-my-back mentality,” writes Vlasic, undermining the leadership at GM, which has been brought into question before. “They worked together, but not ‘together,’ as the Ford guys did.”

Published by William Morrow ”Once Upon a Car: The Fall and Resurrection of America’s Big Three Automakers — G.M., Ford and Chrysler’ is on sale October 4th.

[Source: NYT]

General Motors CEO Rick Wagoner will be stepping down as the head of the deeply troubled American auto giant by the end of the month – this according to several reports including CNBC and GMInsideNews.

Wagoner apparently did not come to the decision on his own and while he was not “forced” he was apparently asked to abdicate the General Motors throne by senior White House officials. GM’s Vice President, Fritz Henderson is expected to take over the helm of the company (We don’t envy him).

Wagoner took up the position of CFO at GM in 1992, becoming executive vice president in 1994. In 2000 he continued to move up the corporate ladder, taking a new position as president and chief operating officer, adding chairman to that long list of titles in 2003.

During Wagoner’s reign, GM’s shares have taken a catastrophic hit, dropping from a high of $60 to a low of $1.27 – a loss of roughly 98 percent.

[Source: GMinsideNews]

After General Motors made it clear in its viability report submitted to the U.S. Treasury that the future of Saturn was uncertain at best, it appears as though Saturn’s network of dealers has its own plan.

Dan Januska, owner of Saturn of Scottsdale, told the Wall Street Journal that the dealers have been in talks to work with a foreign automaker from either China or India. The deal would see Saturn dealers keep their dealerships and retain the Saturn brand, and sell vehicles badged as Saturns, but made by another manufacturer, possibly Chery, Tata, Geely or Build Your Dreams (BYD).

“There are not a whole lot of alternatives,” said Januska to the Journal, “Someone is going to see the value of us and I don’t know who it will be.”

GM’s CEO Rick Wagoner commented on the possibility of the sale of the Saturn name (something General Motors would certainly like to see happen), stating that, “It’s a good distribution network. If someone comes up with an offer, we’re very open to that.”

As we already reported, General Motors stated in its viability plan that it will continue to produce and deliver vehicles to Saturn dealers until 2012, after which GM has no plans for the brand.

[Source: LeftLaneNews via the Wall Street Journal]

After a press conference the day before where every new, exciting and award winning GM vehicle was paraded before the media, the General’s second North American International Auto Show (NAIAS) press conference featured a sparse stage populated only by the upcoming Checy Volt and GM Chairman and CEO Rick Wagoner.

Wagoner announced that the battery packs that will be used in the company’s upcoming plug-in hybrid Volt will be manufactured in the United States. The 31,000 sq.-ft. facility (roughly the size of GM’s display at the Detroit Auto Show) will be built in Michigan in 2009 with output of the battery packs in 2010.

The lithium-ion battery cells for the Volt will be provided by LG Chem and LG Chem’s subsidiary, Compact Power Inc., (based in Troy, MI) will build the battery packs until that facility is operational.

The production facility is, however, just the beginning of GM’s commitment to hybrid-electric power, which to date is a commitment of over $1 billion. General Motors will work with the University of Michigan’s College of Engineering to develop a battery lab to develop new battery designs.

The Chevy Volt and the Voltec hybrid-electric system (which can power the car for 40 miles on zer0-emissions electric power before switching over to a conventional hybrid system) will begin production in late 2010 to go on sale in 2011.