This is an article in the latest issue of Newsweek by columnist Keith Naughton. He proposes the idea of turning the Big Three automakers into just one. He says doing this has many positive aspects like increasing profits of the most valuable brands like Chevy, Ford and Cadillac and leave the "clunkers" like Pontiac, Mercury, and Saturn, behind. He assumes that Chrystler could fall and leave Gm and Ford left, which could combine and compete with Toyota and rest.
Some negatives are the 2.5 millions jobs they are responsible for and the strong labor unions behind them. Also "fiercely independent dealers and a complex network of suppliers". As far as the jobs are concerned I don't know how interested people are in the labor force, they never had a problem laying hundreds of thousands of workers monthly before. And it seems to just be delaying the inevitable if there is no plan of action. This is an interesting idea I never thought of before.
1 comment:
If they just let one of the automakers go under, I think that it could be bad, because of all of the lost jobs; it wouldn't be a very popular decision. However, it could work if they merged the automakers, since that would mean that not as many people would lose their jobs.
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