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9/18/06(Reuters) Senior executives at General Motors Corp. and Ford Motor Co. = have discussed a merger or alliance, industry newspaper Automotive News = reported on Monday.
Citing several sources familiar with the talks, the paper said it was = not clear whether the negotiations will bear fruit.
As of now, the two companies, both struggling with shrinking market = shares while restructuring operations, are not holding talks, and one = source said there is a slim chance that anything will come of the = situation, Automotive News said.
GM and Ford declined to confirm any talks.
"As we've often said, GM officials routinely discuss issues of mutual = interest with other automakers," GM spokesman Brian Akre said. "As a = policy, we do not confirm or comment publicly on those private = discussions, which in many cases never lead anywhere."
Ford spokesman Tom Hoyt said the automaker does not comment on = speculation.
On Friday, Ford said it would slash $5 billion in costs and one-third of = its work force as it warned its auto business would not make a profit in = North America for another three years. It also suspended its dividend = and pledged to revamp a vehicle line-up seen as weak by analysts.
However, the No. 2 U.S. automaker ruled out an immediate sale of its = Jaguar brand, disappointing investors who wanted Ford to press ahead = with asset sales to raise cash, sending shares to their biggest = single-day percentage decline in almost four years.
Earlier this month, Ford named Alan Mulally, a former Boeing Co. = executive, as chief executive, ending the troubled five-year stint of = Bill Ford Jr. as the company's operational head.
GM is in the midst of its own restructuring as it tries to recover from = a $10.6 billion loss in 2005.
Turnaround efforts at the world's largest automaker have gained traction = this year as 34,400 workers