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Should Smaller Japanese Merge - Subaru, Mitsubishi, Suzuki, Isuzu

stevekilburnstevekilburn Posts: 359
edited March 8 in Subaru
Mitsubishi is in big trouble and slowely crawling its way back. Subaru is not doing all that well either. Isuzu has been a disaster. Suzuki is doing well for a couple of years but its future is uncertain. As individual companies they are too tiny to make a difference. Should they merge, consolidate to make a difference?
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Comments

  • rockyleerockylee Posts: 14,011
    I think they should merge with General Motors. They could share platforms and keep R&D costs down. I would love to see some of what GM has learned and what they've learned passed between each other. Hell Sabaru could help Saab out with it's AWD future and Mitsubishi could be a great segment for GM to get into the entry level market. Isuzu, could become a test market for diesel cars in the U.S. and Suzuki needs to make pocket rockets just like their state of the art motorcycles. My opinion, even though it's perhaps a wrong opinion. I just see some positives of a merge with a big corporation like GM who is also hurting and could use the R&D and diverse platforms of these manufactors. Isuzu is already owned by GM and yes needs some $$$$ pumped into them.

    Rocky
  • GM has already offloaded Subaru. It has its own huge healthcare and legacy problems. Besides GM is not good at dealing with insular Japanese Culture as its dealing with Subaru have shown.

    In fact rumors suggest that after Subaru GM wants to unload Isuzu as well.

    The US big 2, Ford and GM have lot on their hands already. Besides Ford has Mazda.
  • rockyleerockylee Posts: 14,011
    Ok I can agree with that. I however would like Mitsubishi to stay alive. Perhaps DC could buy them ????

    Rocky
  • Mitsubishi Motors sold its first vehicle in the U.S. in 1981, and began building cars here in 1988 at its
    manufacturing facility in Normal, Illinois. In 2002 Mitsubishi reached its peak selling 345,111 cars and trucks and in the process gained 2.1% market share.

    But after that it has been a perilious freefall. Several Senior executives have left. Daimler has offloaded its stake (except in Fuso truck unit) and Mitsubishi is beset with problems.
  • DC could not make it happen. It had 37% share at one point. Now its zero.
  • rockyleerockylee Posts: 14,011
    So basically they are dead.

    Oh well, perhaps someone will step up and buy them ???? Maybe Toyota or Honda ???

    Rocky
  • 1982 5260
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    1995 198059
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    1997 189163
    1998 190515
    1999 261254
    2000 314417
    2001 322393
    2002 345111 market share 2.1% peak.
    2003 256809
    2004 161609
    2005 123995 market share 0.73%. DISASTER.
  • rockyleerockylee Posts: 14,011
    Well they really haven't had any desirable gotta have vehicles in years. Mitsubishi has kinda gotten bland.

    Rocky

    P.S. I guess except for the Eclipse which isn't a runaway bride winner ;)
  • socala4socala4 Posts: 2,427
    Unlike GM and Ford, both Toyota and Honda have avoided acquisition strategies. Aside from buying these smaller firms to keep at bay, I can't see why either company would bother changing that strategy just to acquire some minor brands with little or no potential. If VW wasn't having its own woes, I could see it attempting to eventually make a play for Subaru -- it has also been buying up smaller brands, and Subaru and VW have some similar appeal in North America -- but it's probably too cash-strapped at the moment to chase down new acquisitions.
  • You are right aquisitions of these smaller Japanese quartet, either one or more is risky. Infact,

    Subaru: Sold by GM
    Mitsu: Sold by DC
    Suzuki: GM reduces stake to 10%
    Isuzu: GM reducs stake to 10%.

    Its better that the four should merge together.
  • rockyleerockylee Posts: 14,011
    How about BMW ????? They perhaps could use another project to add some flavor and market share. Who owns BMW ????? I though Ford had a stake at one time into BMW in the early part of Y2K. Do they still ?????? ;)

    Rocky
  • rockyleerockylee Posts: 14,011
    I was actually pissed at GM for off loading Saburu. They have a niche that GM doesn't have at the momment and that's how to build turbo cars with good handling w/ AWD. Saab is yet to convince me they can do it without charging a arm and a leg. ;)

    Rocky
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  • rockyleerockylee Posts: 14,011
    GM's best merger would be to acquire BMW. However I have more confidence if BMW would call the shots.

    Rocky
  • rockyleerockylee Posts: 14,011
    Perhaps you are right they all need to merge. Who do you put in charge ?????

    Rocky
  • 2002: 180020
    2003: 186819
    2004: 187402
    2005: 196002 (Best year ever, but still very vulnerbale due to just 1.2% market share)
  • They should either choose someone competent within the ranks of Subaru, Mitsu, Suzuki and Isuzu, or hire some bright talent from outside these four companies.

    Subaru + Mitsubishi + Isuzu + Suzuki = Consolidated Company with market share of more than 5% would be a good idea.

    It will allow them to share platforms, share parts-bin, share manufacturing and marketing budgets etc etc.
  • rockyleerockylee Posts: 14,011
    well 2005 is a strong year for a niche company. If GM didn't have these finacial woes perhaps they would of kept Saburu around. Subaru knows AWD and turbo boxter engines and is probably the best out of the bunch at knowing what customers like. They just have never had the finacial resources to take risks to make themselves grow into a solid company like BMW or Porsche.

    Rocky
  • rockyleerockylee Posts: 14,011
    Well hire the V.P. of Honda or Toyota since all are Japanese company's. I'm sure one of them would be willing to take on the job and use what they've learned at their successful company's and apply it to the merged. ;) For the Big 3 sakes I guess I hope they flounder like the Titanic. :P

    Rocky
  • Merger of these four will provide them with more financial resources and economies of scale.

    They will pool their resources together to make better products.
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