Shares in General Motors and Ford surged yesterday after reports that they had help merger talks with each other and with Chrysler.
Although there has been no firm link between the three companies, investors were buoyed by the prospect of a giant American carmaker that could withstand financial pressures, reported The Times.
Shares in GM rose 33% while Ford’s shares increased 24%.
Bob Nardelli, Chrysler chief executive, told staff he was talking to another of parties about potential tie ups. Ford declined to comment.
As reported on am-online yesterday, GM will only say that it “routinely discusses issues of mutual interest with other automakers”.