Ford Says It Studied Idea of Chrysler Merger Last Year

Ford Motor Co. said Thursday that it considered a merger with its weaker rival Chrysler Corp. last year but would not comment on whether merger talks were held.

“It’s our policy not to confirm or deny any discussions we have had about possible business opportunities,” said Dick Routh, a spokesman for the No. 2 U.S. auto maker.

He said Ford conducted a “business study” of Chrysler, the weakest U.S. auto maker, to examine how the companies’ respective product lines could be merged, among other things.

The study also looked at Chrysler’s employee levels, its research and development capabilities and debt structure, the spokesman said.

A Ford official, who asked not to be identified, said it was highly unlikely now that Ford would make a bid for Chrysler.

“We are working on enough concerns at Ford without taking on additional liabilities,” the official said.

Chrysler has been struggling for more than a decade. In the early 1980s, it was rescued from bankruptcy by a federal loan guarantee.

The auto maker managed to bounce back, mostly because of the success of its popular minivans and Jeep models, acquired from now-defunct American Motors Corp. But it has been hamstrung by a lack of funds to develop new passenger cars.

In addition, Chrysler faces heavy pension obligations stemming from its 1987 acquisition of American Motors and its own aging work force.