AUTO MERGERS; CAR INDUSTRY HITS ROAD TO CONSOLIDATION.Byline: John Hughes
Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. The stunning merger between Chrysler Corp. and Daimler-Benz is likely the first of many, as the merger mania Mania ancient Roman goddess of the dead. [Rom. Myth.: Zimmerman, 159] See : Death that has hit brokerages, banking and pharmaceuticals visits the auto industry. ``This industry is consolidating,'' Chrysler Chairman Robert J. Eaton said Thursday as the companies announced their merger. ``We believe this is just the beginning. We are leading a new trend that we believe will change the future and the face of this industry.'' Automakers are combining largely as a way to save money, speed product development, and increase their presence in the increasingly critical battlegrounds of Asia and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . DaimlerChrysler, as a result of the merger, should retain $1.4 billion in 1999 and $3 billion within three to five years as it increases revenues and saves money by sharing parts-making, research and purchasing efforts. ``What we're seeing is the evolution of the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. ,'' said Richard Scharchburg, professor of industrial history at Kettering University The university boasts that the majority of its' seniors are employed or accepted to graduate schools before graduation and that one out of 15 alumni either own their own business or are high-level managers in leading companies (see Notable Alumni). in Flint, Mich. At one time, 3,000 separate companies made automobiles, but that number has steadily shrunk shrunk v. A past tense and a past participle of shrink. shrunk Verb a past tense and past participle of shrink shrunk, shrunken shrink . The past 30 years has seen a reduction from 42 to fewer than 20. Daimler-Benz Chairman Juergen E. Schrempp said there could be eight or nine automakers within a decade. Scharchburg goes even further. ``It might narrow down to as many as five mega-companies,'' he said. ``I see one major producer in Europe, one major producer in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and one major producer in the Far East.'' Some automakers could be tempted to pair with the strongest companies before those companies combine with someone else. It often happens when an industry slides into a frenzy of mergers. Schrempp said the purpose of the merger was not to put pressure on other companies to do the same. But he added, ``It is without any doubt that there are now many chief executives of motor industries in the world who presently have to decide whether they shouldn't make a move like that as well.'' Still, others point out that combinations in the auto industry are nothing new. ``It's the wave of the future,'' said Toyota spokeswoman Nancy Hubbell, ``but it's also the wave of the past.'' Ford Motor Co. bought British luxury carmaker Jaguar in 1989 and increased its ownership in Japanese automaker Mazda to 33 percent last year. CAPTION(S): Photo PHOTO (Color) Daimler-Benz Chairman Juergen E. Schrempp, left, and Chrysler Chairman Robert J. Eaton sign a merger deal Thursday in London. Pascal Plessis/Associated Press |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion