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Guru

Join Date: Aug 2007
Posts: 1790
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Automotive musical chairs..

03/26/2008 8:46 AM

These automotive icons of the UK have changed hands again..

http://news.yahoo.com/s/ap/20080326/ap_on_bi_ge/ford_jaguar

Good? Bad? The end of the world as we know it?

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Guru
Engineering Fields - Manufacturing Engineering - United Kingdom - Member - Get things done!

Join Date: Jul 2006
Location: East Anglia, UK
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#1

Re: Automotive musical chairs..

03/26/2008 9:40 AM

So far, looks good, better than the Chinese buying Rover, anyway. (If you are Chinese, please don't take offense, take a look at what's happening)

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Power-User

Join Date: Aug 2007
Posts: 479
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#2

Re: Automotive musical chairs..

03/26/2008 10:05 AM

Good or bad depends on your perspective. Multinationals acquire when they have free cash expecting to increase market share by diversification in niche markets only to sell when times get tough. Ford loses 2/3 of it's 5 billion dollar "investment", but OTOH, they get to stay in business for a while longer.

These niche car brands including Volvo, Sabb, the UK companies mentioned, cannot stand up. They are destined to be bought and sold as the alternative is to fold up. I gave up trying to keep track of which major owns which niche brand about 10 years ago.

Are German cars still built in Germany? Toyota's are built in the U.S. GM and Ford in Canada and Mexico. BMW almost went out of business in the 60's.

So, if Ford needs cash, why not sell off these brands to another cash laden International? Then focus on the core business which is what they should have been doing all along.

The consumer of the niche brand is unaffected. The workers may possibly benefit untill the next cycle at least.

The world will not end as a result of this. Shareholders may benefit if Ford survives. I don't think I am directly affected. The new Rover dealership is down on the south side of town some 7 miles away in an area of strip malls that I try to avoid.

Actually, I am sort of affected because my daughter thinks I should by a cool car to be seen while picking up or dropping off at the school. She maintains that my car should only be driven by the cleaning ladies in this upscale community.

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#6
In reply to #2

Re: Automotive musical chairs..

03/27/2008 1:09 PM

"...my car should only be driven by the cleaning ladies..."

You forgot to mention which model Cadillac you drive...

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Guru
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#3

Re: Automotive musical chairs..

03/27/2008 10:56 AM

And the sun never sets on the automotive empire...well, at least it stays in the colonial family, eh wot? Wanna know how to sell more Jaguars? Bring back the 'E' type! The XKE probably sold more units in the US than all other models combined, and with some modernization (except to the STYLE, that is), probably could again.

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Anonymous Poster
#4
In reply to #3

Re: Automotive musical chairs..

03/27/2008 11:00 AM

Good idea, but remember to replace everything Lucus with their Bosch counterpart!

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Guru
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#5
In reply to #4

Re: Automotive musical chairs..

03/27/2008 11:24 AM

Lucus, the god of darkness.

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