Costs drive auto marriages

Article Abstract:

The global automotive indystry is experiencing restructuring as major auto companies seek mergers to survive. Industry analysts believe the number of major automakers will whittle down to around five to 10, and a small number of major parts suppliers. The merged companies will benefit by spreading the costs of developing vehicles, accessories and technology over millions of units. The higher cost of operations has been attributed to increased government regulations, global overcapacity and consumer demand for more features at lower prices.

Market information - general, World

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Mitsubishi defines 'significant changes.'

Article Abstract:

Mitsubishi will implement significant changes at its US operation as it continues to lose money in the increasingly-competitive region. Pierre Gagnon, chief operating officer of Mitsubishi, said that the company lacked success in its initiatives in the US, resulting in depressing profitability. As part of its strategy, Gagnon said that the company will come up with such changes as de-emphasizing volume, quality improvement, shorter delivery time, improved customer service as well as possible consolidation.

Comment:

Will implement significant changes at US operation as it continues to lose money in the increasingly-competitive region

United States, Strategy & planning, Mitsubishi Motors Corp., Article

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