Wednesday, January 21, 2009
Chrysler and Fiat? I'm skeptical
We have seen this before. The theory is that you take two struggling behemoths, poorly managed, combine them and go on to glory! In practice, usually, the combination fails. That was the theory behind the merger of British Motor Corporation and Leyland Motors (which was actually doing OK), with the result of one far larger, failing, company. I think it is a rather naive belief, or perhaps just desperate, on the part of the owners. While it is possible that the combination will succeed, there is no evidence that the existing management can make it happen.