Miken

U.S. Automakers’ Race to the Bottom

STOP WRITING IN CAPITAL LETTERS....IT MAKES YOU LOOK LIKE AN IDIOT!!!!!!


On Mar 05 11:39 AM wrote:

> WHY ARE YOU SUPRISED ABOUT GM AND FORD. dID YOU REALLY THINK THAT
> THE BLLOD SUCKERS FROM THESE COMPANIES WOULD NOT BE BACK TO THE A--
> H---- IN CONGRESS FOR MORE MONEY.WE, THE TAXPAYER SHOULD HAVE NOTHING
> TO DO WITH CHRYSLER, ITS A PRIVATE COMPANY. GM AND FORD SHOULD MERGE.
> AS A MERGED COMPANY THE CAN REBUILD THEIR BALANCE SHEETS AND GO FORWARD.
> COMBINING THESE TWO COMPANIES WILL ENABLE THEM TO PRODUCE THE BEST
> PRODUCTS AVAILABLE AND SEND THE FOREIGN CAR COMPANIES BACK TO WHERE
> THEY CAME FROM. YOU WANT SOMEONE TO BLAME? BALME THE AMERICAN PEOPLE.
> BUYING FOREIGN CARS BECAME A STATUS SYMBOL. LIKE MANY YEARS AGO IF
> YOU HAD A cADILLAC,YOU MADE IT. THE AMERICAN PEOPLE HAVE BECOME THE
> MOST SELFCENTERED PEOPLE IN THE WORLD. GAS PRICES HAVE COME DOWN,
> AND AMERICANS ARE STILL BUYING THE LARGEST GAS GUZZLING FOREIGN CARS.
> GAS SHOULD HAVE GONE TO $5-6, THEN MAYBE WE WOULD LEARN

Chrysler's Rebadging Plan: Strategic Blunder for Nissan?

I agree with the author that re-badging is a bad idea, but I think there's one reality that he didn't cover. The deal has to be a good one for both parties (read that profitable). The seller (Nissan) will build the car and will sell to the buyer (Chrysler) at some margin. Chrysler will then turn around and sell to the customer, again, presumably at a positive margin.

In today's competitive environment I don't think there's room for an extra profit layer.

In addition, I'm not sure that Nissan has a strong enough product line to pull it off anyway.

I think Carlos Ghosn just likes to see his name in print as the "deal maker". I would suggest he has a full time job getting the Nissan/Renault combination to work.