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Should Smaller Japanese Merge - Subaru, Mitsubishi, Suzuki, Isuzu - READ ONLY

78 messages,  Last post on Dec 08, 2009 at 5:24 PM

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Messages Page 7 of 8

#59 of 78 Interesting discussion by rsholland

Feb 26, 2006 (10:15 am)

If Subaru, Suzuki, Mitsubishi and Izusu were to merge, there would have to be a radical realignment and axing of products, so that whatever products were produced, none would step on the toes of other products.
 
Here's what I would propose, using that scenario:
 
• Subaru to concentrate on mid-size and larger cars; anything over 2000cc.
 
• Subaru and Suzuki colaborate on cars under 2000cc.
 
• Mitsubishi to drop their all car lines, as they would compete with the Subarus and Suzukis.
 
• Izusu and Mitsubishi concentrate on trucks and SUVs (large and small), and diesel engine development.
 
____________________________________________________
 
Do I think it might be a good idea? Possibly.
 
Do I think it will happen? Very unlikely, at least not until the powers that be realize that it would be in everyone's interest to do so.
 
The BIG question is: what would each company being willing to give up to make it work?
 
• Would Mitsubishi and Suzuki be willing to drop their car lines? I doubt it.
 
• Would Subaru be willing to drop their sub-2 litre cars? I doubt it.
 
• Would Subaru being willing to share their boxer engine and AWD technology with other members of the group? I doubt it.
 
• Would Subaru be willing to drop boxer engines, if it would benefit the group? Never happen.
 
• Would all of these manufacturers be willing to concentrate on very narrow product segments for the betterment of the whole organization? Very unlikely.
 
I think there will be too much in-fighting and pushing of individual agendas for this to work. I can only see it happening as a last ditch effort among all those companies mentioned.
 
Finally, who would run this group? Somebody from FHI (or any of the othe groups)? Do you think that would sit well with the others? Someone mentioned a takeover earlier, and I think that would be the only way to pull this off (so that there's it's "clear" as to who is in charge), but who among this group has the resources to do that?
 
Bob

#60 of 78 Re: combined small company can better challenge toyota and Nissan [stevekilburn] by harrychezt

Mar 02, 2006 (9:28 pm)

Replying to: stevekilburn (Feb 24, 2006 4:07 am)
After rethinking it over, I concur, agree, etc..
Mitsubishi does have a few nice cars, like EVO and Eclipse.
Suzuki sales are still rising to record levels, for them.
They are ahead of Mitsubishi, actually!
Overseas, I think Suzuki sells more vehicles than Mazda and BMW, even(I once read).
If current levels of sales keep going on at Suzuki(plus, they have an SX4 or something coming out in fall, small suv-car thing) they could finally break that 100,000 units sold barrier(in a year).
That would be cool. Next year, I read on future models, there will be a Sporty Sedan(no name yet) and a sporty Reno coming out(in 07?).
A Reno with say maybe even 142 HP(like Cobalt? GM and Suzuki are partners, GM has about 20% stake in Suzuki) and 34MPG would help.
If they drop this 155HP I-4 that is currently in the Aerio(read it will go away, for this upcoming SX4?) into the Reno, and keep MSRP (loaded up) under 18K.... I would be Very interested, indeed!
Subaru? I still think due to more companies using AWD(Dodge Caliber, Suzuki Aerio sedan/wagon, and the upcoming Jeep Compass,etc), they are losing gorund due to others copying the idea of awd cars.
Still not 100% sure about them.
Isuzu? I may see one at the autoshow in a few weeks, the newer trucks.
I owned an Isuzu I-Mark, rebadged as a Chevy Spectrum , from Aug of 87-to june of 90. Nice car for about 14 months, then after that, brakes needed replaced at 14K miles(mainly highway), master cylinder at 13K, and it got worse from there.
 
Mitsu could sell cars here and make money, and it seems Suzuki has a new found popularity, since sales are higher than back in 1988,(or 05, even) when they were at a previous high point.
 
I agree, if they are going to try for sales, go for the moon! Act like they are trying to hit 1 million sales, and maybe they will gain more customers?

#61 of 78 latest news which points towards the merger. by stevekilburn

Mar 30, 2006 (4:01 pm)

I started this discussion as a purely hypothetical one more than a month ago. But I cannot believe the recent developments:
 
It is simply amazing.
 
GM has recently sold almost its entire stake in Suzuki and just yesterday the news is that it is negotiating with Mitsubishi to sell its stake in Isuzu.
 
Now the merger of small-4 is a real possibility.

#62 of 78 more by stevekilburn

Mar 30, 2006 (4:04 pm)

Who could have forseen in their wildest imagination that this merger would be possible and that GM would readily divest itself from these overseas colonial posessions in such as short span.
 
But the most important challenge is to figure out whether the small-4 really have the vision to put this merger into place and give toyota some strong competition.

#63 of 78 links by stevekilburn

Mar 30, 2006 (4:06 pm)

link on Suzuki
 
http://www.businessweek.com/print/autos/content/mar2006/bw20060307_900404.htm
 
See the latest developments. David welch is decent writer.

#64 of 78 link on Isuzu and GM by stevekilburn

Mar 30, 2006 (4:09 pm)

http://www.businessweek.com/print/globalbiz/content/mar2006/gb20060330_090393.ht- m
 
GM divesting its stake in Isuzu to Mitsubishi

#65 of 78 more links from Detroit free press and BBC by stevekilburn

Mar 30, 2006 (4:19 pm)

http://www.freep.com/apps/pbcs.dll/article?AID=/20060307/BUSINESS01/603070338
 
http://news.bbc.co.uk/1/hi/business/4859760.stm

#66 of 78 GM by nippononly

Mar 30, 2006 (5:01 pm)

is in desperate straits with the Delphi mess - they could need all their cash in just a few months, and word is they could burn $1 billion a month if the Delphi folks reject the contract offer and strike. So they are selling like crazy. I guess the deal to sell a major stake in GMAC got held up or something.
 
ANYWAY, I am sure that one way or another they will sell their Isuzu stake. Not so convinced it will be to Mitsu. But these four will not merge - too much baggage and not enough oomph.

#67 of 78 Re: GM [nippononly] by stevekilburn

Mar 30, 2006 (5:11 pm)

Replying to: nippononly (Mar 30, 2006 5:01 pm)
baggage can be unloaded slowely to increase efficiency and oomph can wait. We need not inject too much oomph lest there may be oomph overdose.
 
Rest assured, merger is the only way to surival, otherwise they are doomed. Smaller fish will be expunged by the bigger fish. They will just die and get expunged in this evolutionary surge.

#68 of 78 GM will survive by stevekilburn

Mar 30, 2006 (5:14 pm)

The new SUVs such as escalade will not only save GM it will breath new life into the organization. I am sure after all this restructuring they will suceed.

Messages Page 7 of 8

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