VW-Volvo talks suggest success ins't enough to ensure independence in automotive industry

Article Abstract:

While the automobile industry continues to consolidate in the wake of the proposed Daimler-Chrysler merger, Volvo AB of Sweden has been hinting at a possible merger with Volkswagen AG. While Volvo would prefer to remain independent, even a successful automaker such as it cannot hope to remain competitive against larger, merged rivals who can exploit their productivity gains from increased economies of scale. With every auto industry merger, there are fewer suitable partners left for Volvo to consider. While the Volvo-VW relationship has been comprised of cooperation agreements and strategic alliances, many expect the two are seriously considering the benefits of a merger. VW wants to increase its presence in the heavy truck market, where Volvo has long been a successful player.

Comment:

Volvo is hinting at a possible merger with Volkswagen as the auto industry consolidates

Strategy & planning, Germany, Motor Vehicles & Parts, Transportation Equipment Manufacturing, AB Volvo, Volkswagenwerk AG

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Ericsson unveils big overhaul of its structure

Article Abstract:

Telefon AB LM Ericsson unveiled a major overhaul of its organizational structure. However, the overhaul may not help Ericsson much as it attempts to deal with its recent troubles. The company appointed new top managers, established three new company divisions, and divided up its Infocom unit. Ericsson is also moving part of its management operations to London and other regions from Stockholm. Ericsson has been plagued by serious upheaval with the drop of its share value.

Comment:

Unveils major overhaul of its organizational structure

Telephone Apparatus Manufacturing, Organizational history, Telephone Switching Eqp, Telephone switching equipment, Telefonaktiebolaget LM Ericsson

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