For India, our great success story of the post reform era - the auto component industry may struggle to meet their estimated 40 billion USD turnover for this fiscal by a far bigger margin than expected as exports to the US account for about 30% of our exports revenue.
But let's spare a though on why none of the Big 3 saw it coming and will a bailout package help any of them. In retrospect, harping on the facts that the product line must have been revamped and better terms should have been sorted out with the union workers on pay scales etc. just will not solve the purpose. Letting the big 3 crumble may result in major ramifications which even the best analysts may come cropper at. The interconnections of the industry and the millions employed by them will only result in heating up the world economy.
I would suggest consolidation. Why can't the best come together to become better. Chrysler with its premium brands, Ford with its mid range pick ups which still have a huge market in Australia and US and GM with its futuristic portfolio can form an excellent strategic alliance. The operationl brilliance of these companies will be put to test once again, and the stones thrown at them can can be made into milestones. It is only a matter of time or the lack of it, but the White House must act fast.
4 comments:
what do u think of yourself, alan greenspan?
is any of your isb profs reading this?
mergers and acquisitions already racing through your mind?
good good :)
But don't u guys agree ?
Merger or acquisition would additionally cost them a lot. Additionally, when companies merge, the first thing that comes out is the difference of vision/mindset, which is very difficult to handle when the companies are huge.
Post a Comment