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Auto Industry Consolidation: Is There a New Model on the Horizon?
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******************************** Auto Industry Consolidation: Is There a New Model on the Horizon? http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1365 The turmoil and uncertainty among auto manufacturers and their suppliers have left people wondering when a shakeout can be expected. According to Wharton management professor John Paul MacDuffie and Christopher Benko, director of the PricewaterhouseCoopers Automotive Institute in Detroit, consolidation will take place among suppliers to a much greater extent than among carmakers, which may not experience mergers and acquisitions at all in the near term but will be engaged in ever-shifting strategic alliances and joint ventures. Additionally, these experts say, many Western parts suppliers are under immense pressure from lower-cost Chinese parts producers and need to consolidate to strengthen their chances of survival.
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