OPINION | Why mergers come at a cost in the car industry

  • 📰 TimesLIVE
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 59%

Business News News

Mergers are nothing new in the car industry. General Motors, long the foremost manufacturer in terms of production figures, came into existence in 1908 as a result of the merger of several companies, including Buick, Oldsmobile, Cadillac and Oakland ...

In the recent past, however, we have witnessed a spate of mergers and takeovers on a global scale. This was clearly induced by spiralling manufacturing costs squeezing the smaller go-it-alone companies, and fierce competition from manufacturers in the Far East. It resulted in some strange corporate buddies meeting across the boardroom table, as illustrated by the following examples.

The brands under its wings include, besides its parents' badges, illustrious names like Alfa Romeo, Jeep, Lancia, Maserati, Opel, Vauxhall and Mopar spare parts. It remains to be seen whether this marriage was made in heaven.

Carlos Ghosn, the Brazilian who earned the nickname “le cost-cutter” at Renault, became CEO of Nissan in 2000, and by the end of that year it seemed his methods would do the trick at Nissan as well. But by 2005 the first signs appeared that the wheels were coming off in the “alliance”, despite the grandiloquence from the top.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Investing with williamchurch09 has brought my family so much joy, I've received R25,500 from my little funds i invested and I'm grateful, i advice everyone to invest with 👇👇👇👇 Williamchurch0

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 28. in BUSİNESS

Business Business Latest News, Business Business Headlines