OPINION | Why mergers come at a cost in the car industry

In the recent past, however, we have witnessed a spate of mergers and takeovers on a global scale. This was clearly induced by spiralling manufacturing costs squeezing the smaller go-it-alone companies, and fierce competition from manufacturers in the Far East. It resulted in some strange corporate buddies meeting across the boardroom table, as illustrated by the following examples.

The brands under its wings include, besides its parents' badges, illustrious names like Alfa Romeo, Jeep, Lancia, Maserati, Opel, Vauxhall and Mopar spare parts. It remains to be seen whether this marriage was made in heaven.

Carlos Ghosn, the Brazilian who earned the nickname “le cost-cutter” at Renault, became CEO of Nissan in 2000, and by the end of that year it seemed his methods would do the trick at Nissan as well. But by 2005 the first signs appeared that the wheels were coming off in the “alliance”, despite the grandiloquence from the top.

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