cynnatalie2000

Big Three Automakers' Desperation for Survival

Detroit's biggest problem is the UAW and the second problem is excess capacity. The third problem is lack of funds for product development.

A merger helps on both fronts.

It is easier to confront the UAW when a single company is dealing with it and a merger can help in planning the shedding of excess capacity.

The funds available for development will increase with a merger in that there would be no need for all three to duplicate the same research.