The turmoil among the domestic motor manufacturers in the United States continues at an increasing pace. Who would have thought that General Motors, long time leader of the world automotive industry, would be prepared to have discussions with arch-rival Ford about working together? This case of strange bedfellows has been prompted by the possible alliance between GM and "Mr Fixit" Carlos Ghosn's successful Nissan-Renault partnership.

But the talks exploring a possible alliance between the three manufacturers broke down after two months. Renault, Nissan and GM officials initially declined to comment, but it has been said that the two companies' views on an alliance were too different.

GM countered that it had less to gain from the proposed alliance and was seeking billions of dollars in compensation to enter into the three-way agreement. GM's 12-member board unanimously rejected the deal that had been urged by the manufacturer's largest individual shareholder, Kirk Kerkorian.

The Las Vegas billionaire supposedly wanted to protect his investment by getting GM's chairman and chief executive Rick Wagoner around a negotiation table with Ghosn. But Wagoner would prefer to soldier on with his turnaround plan that involves drastic employment cuts and factory closures.

The parties had previously set an October 15 deadline. The sudden end to the talks does free Renault-Nissan to pursue another partner and Ford has been earmarked as the most likely candidate.

Ford is also taking drastic action to try and improve its financial position. This has even resulted in Bill Ford standing down as president and chief executive to take on board Alan Mulally, a former Boeing aircraft executive. Ford, great-grandson of the struggling car-maker's founder, Henry Ford, had been at the helm for five years before he called in Mulally (61) to try and turn the company around.

The strategies being used have already resulted in Aston Martin, part of Ford's Premier Automotive Group, being offered for sale. Rumours abound that Jaguar and even Land Rover may also go as Ford consolidates its operations. Ford is implementing job cuts and plant closures and the company is also, evidently, considering selling Ford Motor Credit.

The South African operations of Ford and General Motors say they will not be affected by the troubles their parents in the US are facing, and both local affiliates say it is all "go" for increased exports and domestic sales.

GMSA has hired about 500 additional employees in the past few months to manufacture the Hummer H3 sports utility vehicle (SUV) at a rate of 10 000 units a year. This will apparently be worth about R120-billion to GMSA over the lifecycle of this new addition to the Hummer range. GM has already invested R2-billion in GMSA since taking back control of the company from Delta Motor Corporation in 2004.

Ford has also invested heavily in its South African operation in recent years and is increasing its export of the Rocam engines from an initial 140 000 a year to 240 000 a year. FMCSA also ships a substantial number of cars, mainly the Ford Focus, to several destinations.

Both FMCSA and GMSA are reporting strong sales demand on the local market.