Auto Company Merger Good Idea
For carmakers that compete globally like DaimlerChrysler and Honda, a merger makes sense, because combining research and development expenditures would make them more profitable, said UAB marketing professor and auto industry expert Tom Powers, Ph.D.
Although Honda denies reports of merger talks, Powers said a union with the German firm that makes the M-Class SUV in Alabama would make for a stronger company in the long term. It also benefits the consumer since using one R&D department to produce multiple product lines means "they can either improve their profitability or be able to have relatively more research and development put into each product they sell, which makes for a better product for the consumer."
Call Powers at 934-5664 or e-mail [email protected].
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