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Should Smaller Japanese Merge - Subaru, Mitsubishi, Suzuki, Isuzu
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It could be a few millions. Which is affordable.
Every troubled automaker does debt consolidation. So I dont see that as a problem.
I think they just have to put their mind to it and just do it. They have to be a little bold like us Americans and go with the idea with strong passion.
And hire a good manager who can manage the merged small-4 with vision and energy.
The costs of closing plants, redesigning etc etc are just part of the process to fix the problem. So what you are stating as problems in the way of merger are actually exactly the things they will do after merger which will be good.
Sorta. They've had a series of cushy loans from various Japanese banks, which in that economy constitutes thirdhand government assistance. Even so, that's not going to save Mitsubishi's export markets by itself, and they're not a big enough player at home to survive in the same shape without them for long.
Here's what I would propose, using that scenario:
• Subaru to concentrate on mid-size and larger cars; anything over 2000cc.
• Subaru and Suzuki colaborate on cars under 2000cc.
• Mitsubishi to drop their all car lines, as they would compete with the Subarus and Suzukis.
• Izusu and Mitsubishi concentrate on trucks and SUVs (large and small), and diesel engine development.
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Do I think it might be a good idea? Possibly.
Do I think it will happen? Very unlikely, at least not until the powers that be realize that it would be in everyone's interest to do so.
The BIG question is: what would each company being willing to give up to make it work?
• Would Mitsubishi and Suzuki be willing to drop their car lines? I doubt it.
• Would Subaru be willing to drop their sub-2 litre cars? I doubt it.
• Would Subaru being willing to share their boxer engine and AWD technology with other members of the group? I doubt it.
• Would Subaru be willing to drop boxer engines, if it would benefit the group? Never happen.
• Would all of these manufacturers be willing to concentrate on very narrow product segments for the betterment of the whole organization? Very unlikely.
I think there will be too much in-fighting and pushing of individual agendas for this to work. I can only see it happening as a last ditch effort among all those companies mentioned.
Finally, who would run this group? Somebody from FHI (or any of the othe groups)? Do you think that would sit well with the others? Someone mentioned a takeover earlier, and I think that would be the only way to pull this off (so that there's it's "clear" as to who is in charge), but who among this group has the resources to do that?
Bob
Mitsubishi does have a few nice cars, like EVO and Eclipse.
Suzuki sales are still rising to record levels, for them.
They are ahead of Mitsubishi, actually!
Overseas, I think Suzuki sells more vehicles than Mazda and BMW, even(I once read).
If current levels of sales keep going on at Suzuki(plus, they have an SX4 or something coming out in fall, small suv-car thing) they could finally break that 100,000 units sold barrier(in a year).
That would be cool. Next year, I read on future models, there will be a Sporty Sedan(no name yet) and a sporty Reno coming out(in 07?).
A Reno with say maybe even 142 HP(like Cobalt? GM and Suzuki are partners, GM has about 20% stake in Suzuki) and 34MPG would help.
If they drop this 155HP I-4 that is currently in the Aerio(read it will go away, for this upcoming SX4?) into the Reno, and keep MSRP (loaded up) under 18K.... I would be Very interested, indeed!
Subaru? I still think due to more companies using AWD(Dodge Caliber, Suzuki Aerio sedan/wagon, and the upcoming Jeep Compass,etc), they are losing gorund due to others copying the idea of awd cars.
Still not 100% sure about them.
Isuzu? I may see one at the autoshow in a few weeks, the newer trucks.
I owned an Isuzu I-Mark, rebadged as a Chevy Spectrum , from Aug of 87-to june of 90. Nice car for about 14 months, then after that, brakes needed replaced at 14K miles(mainly highway), master cylinder at 13K, and it got worse from there.
Mitsu could sell cars here and make money, and it seems Suzuki has a new found popularity, since sales are higher than back in 1988,(or 05, even) when they were at a previous high point.
I agree, if they are going to try for sales, go for the moon! Act like they are trying to hit 1 million sales, and maybe they will gain more customers?
It is simply amazing.
GM has recently sold almost its entire stake in Suzuki and just yesterday the news is that it is negotiating with Mitsubishi to sell its stake in Isuzu.
Now the merger of small-4 is a real possibility.
But the most important challenge is to figure out whether the small-4 really have the vision to put this merger into place and give toyota some strong competition.
http://www.businessweek.com/print/autos/content/mar2006/bw20060307_900404.htm
See the latest developments. David welch is decent writer.
GM divesting its stake in Isuzu to Mitsubishi
http://news.bbc.co.uk/1/hi/business/4859760.stm
ANYWAY, I am sure that one way or another they will sell their Isuzu stake. Not so convinced it will be to Mitsu. But these four will not merge - too much baggage and not enough oomph.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Rest assured, merger is the only way to surival, otherwise they are doomed. Smaller fish will be expunged by the bigger fish. They will just die and get expunged in this evolutionary surge.
Not Subaru - Toyota just took a stake in them and solved their biggest global problem - all the red ink at their Indiana plant. I think they will be fine for some time to come.
All of the other three may fall back out of the U.S. in the next five years, but I doubt they will disappear back in Japan.
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Rocky
P.S.
GM should buy them and then bring back the
Mitsubishi 3000 VR-4 and kick everyone's butt in sportscars with a twin turbo, 4 wheel steering, All-Wheel Drive Supercar
Kyle
I guess they didn't add much value to the Daimler empire. :-P
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
Rocky
2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)
They do have quality, though it likely has been damaged somewhat by emptier coffers, though what credibility remains is damaged by the current status of their company, mostly caused by a short-sighted financial decision. In the end, most cars these days range from average to pretty darn good. The difference between Toyotas, Hondas and even Hyundais compared to a number of other vehicles made by an array of other manufacturers is, to an extent, negligible. However, Toyota for example, rides on its reputation and marketing strategies, though the vehicles it makes are mostly bland and overprices with a more noticeable decrease in quality than in times past. However, by a majority of US market buyers, they are seen as infalliable and a guarantee for worry-free ownership. It's all in the image and that's something Mitsubishi should remember.
At least their high-end performance models still give them the credibility they deserve; I see some glimmer of a good idea in what Nippon said before about focusing on their Ralliart legacy to remind people about what makes Mitsubishi as good as it was and is. So if they try to market themselves differently or gain a greater presences here in the states, they can salvage their import status to some extent and let their products take care of the rest. Mitsubishi is capable of this - they just have to make some smart, careful moves in the right direction.
Suzuki Reportedly in VW's Hands by Year-End (AutoObserver)