Friday, 14 November 2008

Merging Motor Companies

During my time writing here , various news stories and blog ideas have led me to this one; Car companies must merge. Sure it’s not the ideal situation. We all like the stand alone heroes who do it all alone, just like the pioneers in the industry like Henry Ford, Carroll Shelby and Enzo Ferrari who started off in muddy farm barns and gritty work shops armed with nothing more than few basic tools and a dream.

However, let us be honest here for a second. Keeping a car company on the road is almost as hard as starting one, especially in today’s turbulent market. Oil prices are going up more than down and the share prices are going more down than up. By merging with one another, as we have seen with many other companies such as Ferrari and FIAT and Daimler and Jaguar, they can help each other out. This is done in various ways, either cutting down on engineering and design costs by sharing ideas or simply by pumping capital from one company to another.

It definitely seems like a possibility that some of our well-known companies may be going up for grabs quite soon as costs mount and sales diminish.

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