A GM-Chrysler Merger Does Not Guarantee Future Success
I see where GM and Chrysler are seriously talking about merging. The two companies are saying that if they didn’t merge, there’s a good chance that one or both of the companies will fail. On the other hand, the logic goes that if they merged the combined company would control 36 percent of the US auto market which would prevent it from failing. As David Cole, chairman of the Center for Automotive Research, put it: “If they (the two companies) do come together, they really do become too big to fail.” Now, I’ve heard everything! Since when does combining two large companies, that are both incompetently managed, guarantee success? At one point, GM controlled more than 36 percent of the US auto market and today it’s in danger of failing. Unless new senior management is brought in that knows what it’s doing with regard to designing, building and marketing cars, this merger only prolongs the agony, it doesn’t prevent failure. – Ross / RossReck.com
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Even if they agreed on leadership for the new company and made the financial case for going ahead I can’t imagine how long it would be before it made a profit. How many government bailouts it will need. And talk about combining two unique cultures that have been competitive for almost a century.