General Motors! Meet Peugeot: Another meet, yet another mystery to unravel in the coming years – Part 1

Corporate sector has always seen profits in front of them and that is the only God they know to bow before. In the past, the world has seen a slew of new techniques and methods to beef up the sales and revenues. The corporation might have become successful in that regard but the nature has been taxed on mass production and local labour has paid the toll on foreign cheap labour.

Merger is another method by which two or more giants shake hands together to eat up the market share of the little fish, now I am not calling the corporates a shark or something. That notion is on the discretion of the readers.

However, the history has seen its fair share of success and failure of mergers and strategic alliances. Many lost what they had before, many claimed the lion’s share in the market, many became a success and then had to pull the plug the ‘friendship’. The latest example of the latter one is Sony Ericsson, a strategic alliance that now belongs to Sony Corporation.

However, the most acquisition and mergers have taken place in the automotive industry. Recently, Swedish automakers, Saab experienced a near death experience, when General Motors pulled the plug on the European kid. However, at the eleventh hour, Spyker, a dutch automaker, bought its share at dime a dozen.

Chrysler in the ’80s had an equity stake in Peugeot  (this is not well remembered) which was largely unexploited, produced no tangible benefits to either company, and was sold off during one of Chrysler’s periodic “we’re a little short right now” periods.

In more recent times, GM, under the leadership of Jack Smith, embarked on a broad “alliance strategy,” taking minority equity slices in Suzuki, Isuzu, Subaru maker Fuji Heavy as well as, in Europe, Fiat.

Short URL: https://www.newspakistan.pk/?p=14935

Posted by Usman Khalid on Mar 7 2012. Filed under Automobiles. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.