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Automotive executives have been selling, merging, acquiring and swapping bits and pieces of, or entire companies, across national borders with the enthusiasm of teenagers trading Internet music burns.

The British sold off their entire industry; the Swedish auto industry is controlled by Americans; Japan and the U.S. are down to two home-controlled major producers; French directed products are back in the U.S.; and the Germans run more of the U.S. retail market than the Japanese.

The Germans gained ground by "merging" with Chrysler and taking over Mitsubishi, while Volkswagen/Audi and BMW earned U.S. market share gains exceeding those of Mercedes.

Japan first gave up control of Mazda to the Americans, then Nissan to the French, and now Mitsubishi to the Germans, with Fuji/Subaru, Suzuki and Isuzu moving toward the Americans. Only Toyota and Honda stand free and clear as major and true Japanese national entities. Korean companies, most facing severe financial and/or labor problems, are dickering with both Americans and Germans.

Oddly, images are blurred. Americans think of Nissans as Japanese vehicles. At the same time, the Japanese people revere French management as the true Nissan. Reams of articles about a few shared mechanical components brought many Americans to the point of thinking of Jaguar as another Ford product while considering Range Rover as British. Conversely, the Germans would like to find a way to tie Chrysler products to the Mercedes image. Unfortunately, many Americans pass the merger off as an example of a faulty German management decision.

As for America, there are only two home-controlled entities remaining -- General Motors and Ford. The concept of the "Big 3" is fading faster than a monster SUV's gas gauge. The question is, can the "Detroit Duo" hold or gain ground? Their situations differ. GM has been on a constant downward slope since 1980. During that period Ford experienced ups and downs, but overall it made share gains. The General is now showing signs of understanding the business -- quality and emotion. Ford, having forgotten the key to initial quality and profitability, has earned long-term quality ratings touching the Japanese well ahead of the Germans, yet it is seen to be on a downward slope while GM, if not quite at an upturn corner, is close enough to see and feel the winds of turnaround.

# posted by Medical Information : 4:13 AM