GM and Peugeot Merger
With the current economic trends that many multinationals are caught up in especially after the global recession, many opt for alternative ways to survive in the market as well as alternative markets. This drive to venture into other markets has seen many of the multinationals and big businesses venture into alliances and mergers that would see them have a footing in varied economic settings hence supporting their entire business framework.
The article is mainly based on the alliance that the General Motors intend to forge with the French auto maker Peugeot Citroen. The General Motors (GM ) intends to take buy 7% of the Peugeot Citroen in a move that is widely seen to be a step towards salvaging the Peugeot from total collapse and also to solidify the footing of GM within the European market.
The alliance between the two companies is based on a long-term strategic alliance principle that is broad in its basis and global in the focus. This is in the light of the consolidation of their strengths from both sides and the capabilities and using it to expand the influence over the European market as a unit. This consolidation will be achieved through the joint procurement at a global scale as well as sharing of the components,...
Mergers and Acquisitions The most recent worldwide economic meltdown that began in 2007 decimated the auto industry. Chrysler and GM were two of the 'big three' that did not escape without filing bankruptcy and restructuring; shedding thousands of jobs and debts in the process. Ford managed to escape this fate and the accompany government take-over but also suffered tremendous loss in terms of sales and employees. At the height of the
Furthermore, culture clashes between Mitsubishi and Peugeot Citroen personnel combined with the fact that Peugeot already sells an unpopular, rebranded version of Mitsubishi's Outlander SUV does not bode well. Entering into a merger to sell SUVs in the developing world seems like focusing on what is becoming a vehicle design of the past, rather than the future, as well as an organizational strategy of the past (merging with another
Xcvbnmqwertyuiopasdfghjklzxcvbnmqw Ertyuiopasdfghjklzxcvbnm Making Strategic Choices SLP-Module 4 [Pick the date] Strategic choices are the core of every business. Recently, General Motors have decided to enter into strategic alliance with PSA Peugeot Citroen, the much talk about topic in automotive sector these days. In the past, we have observed that the in order to make maximum benefits of economies of scale, companies would have entered into mergers however the changing global trend entails
2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will
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