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Special Report

A Big Divorce — and a Splashy Wedding?

Forget the prenup Chrysler doesn't have with rapacious Daimler — it should remarry promptly. GM will be an ideal mate for the 21st century.

(Page 2 of 2)

But what would Chrysler bring to the table? Economies of scale, for one. The buying power of GM is already formidable; add Chrysler and the margins go down some more, making it possible for GM to squeeze a few more bucks out of each vehicle sold.

But the biggest argument in favor of a merge may simply be consolidation — and the elimination of a domestic competitor for both GM and Chrysler. Such a partnership would allow the combined entity to turn its full attention on the Japanese — and to get ready for the coming onslaught of Chinese cars, which may be unloaded en masse at vending machine prices through big box retailers like Wal-Mart and Costco.

There is strength in unity. And bigness can be a huge advantage all by itself.

WHO KNOWS? MAYBE FORD will join up, too — creating an American Automotive Entente for the 21st century that could be the only realistic hope of dealing with the homegrown problems of finding a way to pay all those promised bennies to current and long-retired employees — and of mounting an effective resistance to the seemingly unstoppable juggernaut from Asia.

Let’s face it: The auto industry is already global in all but formality. You’re as likely to find German (or Japanese) warning stickers under the hood of your ‘07 “American” car as you are English ones.

Or maybe “Hecho en Mexico.”

Maybe regional mega-blocs are the future. Maybe they are as inevitable as the free and fluid movement of money and people across international borders.

Why not make it official? Or at least, profitable.

This is just what they may be pondering right now in Auburn Hills — and on the top floors of the Renaissance Center (GM’s HQ) in downtown Detroit.

As the Borg from Star Trek liked to say — “Resistance is futile”!

Page:   12

topics:
Business

About the Author

Eric Peters is an automotive columnist and author of Automotive Atrocities: The Cars You Love to Hate (Motor Books International) and a new book, Road Hogs.

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