ng a new car it purchased Jaguar. If Ford had not bought an established luxury car company, it would have had to market a whole new automotive line that was not guaranteed to be successful. Jaguar gave them instant credibility without the struggles of an upstart company.Issue 1: Mergers The global auto industry has been overcome with merger madness. Leading the charge was the union between Daimler-Benz and Chrysler. This merging changed the landscape of the global auto industry in one stroke. By joining together and combining forces, DailmerChrysler looks to bring formidable and muscle under one roof. To sum up it's conquest, it wants to change the way the auto industry operates. However, in some merging feats companies like Ford only wish to gain an easy entry into a different market segment. Merging allows for better cost effectiveness as well as easy entry into a specific market segment while instantly gaining a reputation. Cost effectiveness is gained when companies merge allowing them to share technology like engines, platforms, etc. In the merging of DailmerChrysler, Chrysler's renowned low-cost production of trucks, minivans, and sport-utility vehicles will be called upon to cut costs. This saving is expected to be around $3 billion annually, including $1.1 billion in purchasing costs alone (Hughes). Chrysler Corporation has shared engines as well as production facilities with Mitsubishi Motors for several years. In the past Chrysler borrowed the 3.0 liter six cylinder engine from Mitsubishi for its minivans. Currently, Dodge Stratus and the Mitsubishi Eclipse share the same engine as well as production lines in an effort to cut costs.According to Jacques Nasser, Ford Motor Companies president, "The next big efficiency isflexibility between vehicles. You are not retooling, redesigning and remanufacturing every part." Ford is looking to cut the number of platforms they use from 32 down to 17 by 2003 (Welch & Howes)....
