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  #1  
Old 10-28-2012, 02:54 AM
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Default If GM Had Brains...

Ever since the GM/Peugeot-Citroen tie up, I've wondered why GM didn't approach Hyundai-Kia instead? On many levels it makes so much sense. GM-Hyundai could own South Korean production for all intents and purposes and South Korea is a juggernaut even in harsh economic times. GM's strength in China could be bolstered by Hyundai and vice versa. South American is another obvious win. World FWD platforms shared by GM/Hyundai would be a cinch and a Cadillac/Genesis/Equus/Quoris tie up would be a no brainer for it would spread development costs. With respect to Europe, Hyundai-Kia is gaining ground and Peugeot-Citroen isn't, so why not go with the "win"?

Two sick companies "merged" do not equal wellness.

Heck...a GM-VW cooperation would have made more sense.
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Old 10-28-2012, 04:02 AM
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They already have a Korean operation - Daewoo. It was possibly the smartest buy GM has ever done; Daewoo had world-class factories that GM got their hands on. Daewoo produces everything for that side of the world; Asia, Australia, Japan, South Korea.


Merging Hyundai/Kia and GM makes absolutely no sense; neither is hurting or needing each other at all. In fact, they compete fiercely on several fronts; Optima and Sonata are strong competitors to Malibu, and although GM has China on lockdown, Hyundai is venturing further and further in to the Chinese and Brazillian market. Neither company needs them; It'd be like Honda and Toyota merging; it makes no sense.


You can't fuse two companies together for no reason at all.
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Old 10-28-2012, 04:17 AM
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It makes TOTAL sense to have a JV...fierce competitors joining forces is a better business model than dying Opel and dying Peugeot-Citroen hoping to get success by copulating. Peugeot-Citroen will die first then GM.
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Old 10-28-2012, 04:25 AM
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GM needs to figure out how to KILL Peugeot-Citroen and grab their market share. GM needs to be predatory as opposed to sucking up to medicrity.
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Old 10-28-2012, 05:12 AM
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Quote:
Originally Posted by swizzle View Post
It makes TOTAL sense to have a JV...fierce competitors joining forces is a better business model than dying Opel and dying Peugeot-Citroen hoping to get success by copulating. Peugeot-Citroen will die first then GM.
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GM needs to figure out how to KILL Peugeot-Citroen and grab their market share. GM needs to be predatory as opposed to sucking up to medicrity.


Do you not realize how these two statements contradict the idea you're going after? Hyundai Kia are very strong, and have a very large market presence. Why wouldn't it be in GM's best interest to destroy Hyundai Kia instead of PSA? A "Merger of Equals" doesn't exist; otherwise you will always get something like Damiler-Chrysler, and we all know what happened there. Hyundai Kia + GM makes no sense; Hyundai has nothing to offer, nor are they looking to expand out to someone else. If any joint venture happens, it will likely be Chinese, or with a partner where Hyundai doesn't have a strong market presence. (Which would be Europe, if anything)



PSA has something GM wants, and GM has something PSA wants. PSA isn't 'dying' as you say, they are (like all manufacturers) are dealing with a shrinking European market, and they must adapt to survive. PSA is growing stronger in China (Dongfeng Citroen, plus all of Peugeot's low-cost offerings) and they have a decent presence in South America, quite possibly stronger than Hyundai's.

Opel isn't dying either; they are in a similar place where GM of USA was circa 2008; a shrinking market coupled with very high labor costs. Shrinking market is the reason why VW cut forecasts of the next Golf so much; there's no one out there to buy their cars. Everyone in Europe is feeling the hurt, and they all have to adapt to survive.
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Old 10-28-2012, 11:26 PM
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It's much worse than that and were it not, GM would not have been looking to sell off Opel off and install Chevy (GM South Korea) in its place just a year or two ago. Technologically, PSA has NOTHING that GM doesn't already have.
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Old 10-29-2012, 04:21 AM
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Hyundai and VW are doing quite well on their own, were GM to approach them I doubt anything greater than a token engine/transmission JV would result.
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Old 10-29-2012, 04:51 AM
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Originally Posted by swizzle View Post
It's much worse than that and were it not, GM would not have been looking to sell off Opel off and install Chevy (GM South Korea) in its place just a year or two ago. Technologically, PSA has NOTHING that GM doesn't already have.
GM was never looking to sell Opel, and PSA and GM will likely split costs on a new small car. GM Gamma I was shared with Fiat. Fiat no longer has that partnership.


You can't even sell off Opel; it's 100% owned by GM. It'd be like GM selling off Chevrolet; it makes no sense and it's too intertwined with the rest of GM as a whole.
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Old 10-29-2012, 05:03 AM
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You can't even sell off Opel; it's 100% owned by GM.
I agree with everything you said except this. Percentage of ownership has no impact on the ability of a corporation to sell a wholly owned subsidiary. In fact, it's MORE straightforward to sell something wholly owned because there aren't competing factions of shareholders attempting to block a sale and less risk to a buyer who can avoid dealing with other part-owners besides GM.
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Old 10-29-2012, 08:32 AM
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Quote:
Originally Posted by swizzle View Post
It's much worse than that and were it not, GM would not have been looking to sell off Opel off and install Chevy (GM South Korea) in its place just a year or two ago. Technologically, PSA has NOTHING that GM doesn't already have.
They don't want any technology from PSA, they want to ratioalize production of midsizers by joining platforms and thus enabling production in one place at acceptable numbers (especially the Insignia/C5 segment is shrinking in Europe considerably; Without pulling many vehicles off from one platform, production is hardly viable) and sharing development costs of other platforms (IMO especially the CUV segment makes sense, neither the Chevy Captiva based Opek Antara nor the Mitsubishi PSA clones were really compatible with European taste).

This is a) not a merger, but a cooperation on certain vehicles/production facilities, and b)neither PSA nor GM wants a certain technology from the other, but save costs by rationalization. Probably not the most genius move, but then again it's not like alternatives are overly numerous...
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