​Why Do Carmaker Fusions Like Honda and Nissan frequently stutter

The Chinese automakers are thinking about joining forces to endure in a quickly evolving auto industry, but auto history is full of disturbed and failed marriages. In a charge to discuss fees and support themselves engage in a fast-changing and increasingly competitive market, the Chinese automakers Honda and Nissan are discussing a potential consolidation. But a acquisition, also of two companies from the same state, is no guarantee of success, and the history of mechanical offers is littered with failures and frustrations. It’s very challenging to combine two huge, global manufacturing operations because it requires a combination of various business models, technologies, and approaches. The success of a merger depends on collaborating with ambivalent managers and engineers after years of conflict. Managers must lose authority to others, and teams and projects must be changed or abandoned. In some circumstances, elected officials who control the merging firms shackle them into continuing to run their money-losing companies. Thomas Stallkamp, an electrical expert based in Michigan, was involved in the problems of one of the biggest car merger, the 1998 acquisition of Chrysler and the German organization Daimler. Mr. Stallkamp spent centuries in senior jobs at Chrysler and DaimlerChrysler. ” Automobile companies are huge, complicated organizations, with big engineering staffs, production plants all over the world, hundreds of thousands of employees, in a capital-intensive company”, Mr. Stallkamp said. It’s very, very difficult to put two of them together because you get into a lot of egos and infighting when you try to put them together. Honda and Nissan also discussed potential mergers with Mitsubishi Motors, a smaller manufacturer who collaborates closely with Nissan, on Monday. A pairing would unite Japan’s second- and third-biggest automakers, after Toyota, and create a company that would be the third largest in the world by number of cars produced, after Toyota and Volkswagen. The article content is retrievable with difficulty. Please make JavaScript available in your browser’s settings. Thank you for your patience while access is verified. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while access is verified. Already a subscriber? Log in. Want all of The Times? Subscribe. 

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