Consolidation ,.. the only way.

Did anybody expect Kmart and Sears to combine forces in order to prevent their demise? The only way to not be put out into oblivion by Walmart was to join forces, and combine strengths.


Now, the US auto industry is facing the same dilemma.

The auto manufacturers are cutting off health and retirement benefits right and left, and suppliers are falling into bankruptcy right and left, as they scramble to fend off bleeding losses. While layoffs mount everyday in the big 2, Toyota announces their desire to build factories in the USA.


It just seems feasible to me, that the only way Ford and GM will be able to compete, let alone stay afloat,... is by joining in corporate marriage. If they were to consolidate into each other, their strengths would be combined, their expenses in opposing competition would be eliminated, their workforce and technologies would enhance each other, and their focus could be properly directed in ways that would assure their mutual survival.

Chrysler is already out of the picture now, as a foreign entity.

Imagine the powerhouse of a company that would be made in consolidation of Ford and GM.
Imagine the total brand influence on the market by one company, that would be far superior in market-share, and would be a formidable force against the strengths of outside influences.

Yes, they have spent themselves into a corner, while trying to grab marketshare.

They own brands like on a monopoly board,..and the game is close to end.

Now,..one or both will be facing bankruptcy,.. and will position themselves for a takeover.

Then a moment where consolidation will bring forth relief.

But only after a threat from a foreign black knight becomes apparent.

Thats when enemies become friends, when they both stand to lose.


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[edit on 13-12-2005 by smirkley]

After dumping approximately 28% of it's workforce in one day, this Monday, you can see there are no more options left.

"These cuts are a painful last resort, and I'm deeply mindful of their impact," Chairman and CEO Bill Ford said. "They're going to affect many lives, many families, and many communities."

Common guys, your only chance of survival, is to take down your local walls and work together. There arent going to be many chances. As noted Toyota will sell a bunch of cars easily. And with China unveiling their first car in Detroit this year, the heat is being applied. Consolidate and act as one unitized entity, or watch the numbers very quickly eat away at what was once a mountain.