SINCE the 1990s, the automotive industry has been bracing itself for a major correction.
Saddled with costly overproduction – where actual deliveries to customers lag behind the number of cars rolling off production lines by several months or more – the industry started looking for ways out of their jam.
Consolidation, in the form of mergers and acquisitions, went on overdrive. Notable examples include marriages between Daimler and Chrysler, and BMW and Rover – both of which ended on the rocks.
Others fared better, such as Volkswagen Group’s acquisition of brands like Bentley, Lamborghini, Scania and Porsche.
The Renault-Nissan merger has also fared reasonably well, although recent developments suggest cracks are forming.
Meanwhile, the American manufacturers resorted to cheap financing (sometimes, free financing) to keep the home market – once…
