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Posted by hipstomp | 3 Dec 2008
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What will become of the American auto industry? As leaders of the Big Three prepare to return to Washington, hats in hand, to beg for help, more than one analyst is calling for the Big Three to turn into the Big One.
Newsweek, Car Magazine, Independent Investor and even Air America Radio host Ron Reagan are all calling for the three companies to combine into one entity:
...Detroit actually has parts worth saving. Melding them into a single entity could buff up its best brands, like Chevy, Ford and Cadillac, while leaving the clunkers (Pontiac, Mercury, Saturn, et al.) by the side of the road. It would take a healthy dose of Nietzsche's "creative destruction," but that's preferable to total destruction....
What do you think? Would this once again make America competitive on the global auto stage, or do the problems run deeper than a merger would solve? And more importantly (to us), what does this mean for American car designers?
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Comments
This is a bad idea. Putting three cans of garbage together still leaves you with garbage, but now you have one HUGE pile to build and manage instead of three smaller existing piles.
Are these analysts that think this is a good idea the same analysts that didn't seen the economic situation we are in today coming? I wonder what other advice they have for us.