The Conservative Cave
Current Events => General Discussion => Topic started by: Miss Mia on December 08, 2008, 04:28:39 PM
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Who will survive the auto crisis? (http://www.autonews.com/article/20081208/ANE03/812079901/1179)
Fiat's Marchionne sees fewer automakers as global car sales collapse
The economic crisis will trigger a big cut in the number of global automakers, Fiat group CEO Sergio Marchionne said.
Marchionne thinks there could be only six survivors in the global volume sector as falling new-car sales and rising financial losses lead to a wave of consolidation in the industry.
"By the time we finish with this in the next 24 months, as far as mass-producers are concerned, we're going to end up with one American house, one German of size; one French-Japanese, maybe with an extension in the US; one in Japan; one in China and one potential European player," Marchionne said.
"The only way for companies to survive is if they make more than
5.5 million cars per year," Marchionne told Automotive News Europe.
At present, only five automakers -- Toyota, General Motors, Volkswagen, Ford Motor and Renault-Nissan -- have that kind of scale.
Marchionne said: "This business is going to be completely different. It cannot continue as it did in the past. Independence in this business is no longer sustainable."
Analysts think bigger companies are likely to be the ones best placed to achieve cost savings and spread the expense of research and development in the future.
This could mean the end of some famous and long-established brands.
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Well, that is the way of the international capitalist economy. Via con dios, GM and Chrysler.
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Well, that is the way of the international capitalist economy. Via con dios, GM and Chrysler.
Marchionne predicts GM making it through.
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I don't foresee Honda going anywhere. Their products are just too damn good. When people reach a point that they have to have a car last at least 10 years, Honda will have trouble keeping up with demand.
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Marchionne predicts GM making it through.
Their reputation for quality..... not likely.