sm1ke

iTrader: (5)

Mazda has also partnered with Toyota. They broke ground on a new plant in Huntsville, Alabama back in Nov 2018 (source). The plant is supposed to build Toyota's 2020 Corolla and a new Mazda crossover SUV (possibly Mazda's first hybrid vehicle).

https://insidemazda.mazdausa.com/new...facturing-usa/
https://www2.mazda.com/en/publicity/...3/180309a.html

Sulu

I don't know where you got the idea that Renault is trying to buy FCA. The proposal, as I understood it, was that FCA approached Renault with the idea of a merger of equals, each taking a 50% share in the new company; this does not sound like Renault buying out FCA. And Renault's actions -- asking for more time to consider the proposal, in effect to talk to Nissan, which Renault had not done -- do not fit with the actions of an automaker ready to buy out another automaker.

Consolidation, whether you personally like it or not, will happen in some fashion. The direction that the auto industry is headed is proving to be very expensive and the weak will not survive unless they partner with a big brother.

FCA, which is strong in North America but weak in Europe (and Asia), is looking for a European partner.

Ford, which is also strong in North America and weak in Europe, has partnered with VW (weak in North America but strong in Europe) to develop commercial vehicles, electric vehicles and autonomous vehicles.

There are a number of small automakers (Daihatsu, Subaru, Mazda Suzuki) in Japan that will not survive with help from a big brother (Toyota). I do not see any small Japanese automakers agreeing to consolidation with any European or American automaker (due to cultural differences), which means they will have to work with Nissan, Honda or Toyota.

Merely having one (larger) automaker buying shares in another (smaller) automaker will not be enough; they need to cooperate on developing new technology.

Sulu

Yes, I had forgotten about this specific example. Another example is Toyota buying output from Mazda's Mexican plant to rebadge the Mazda2 to sell as the Toyota Yaris in North America.

mmarshall

It's not so much that Renault "was "trying" to buy FCA. Fiat, in Europe, was so strong a competitor to Renault that the executives at Renault probably never expected to ever be in position like this, where there was (and is) a real possibility of a merger. My point is that they are likely to jump at the chance, but only if government regulators allow it.

Well, you misquoted me. I did not say that consolidation would not happen. I merely said (with some justification) that it may not always be a good thing for the consumer. Competition is usually better than having a couple of large firms control an industry.

Sulu

If it was not your intent to say that Renault was trying to buy out FCA, why do not continually say that "Renault will jump at the chance to acquire FCA"?

mmarshall

Like I said, it looks to me like the Renault people never thought they would be in a position to where merging with FCA would be in their grasp. And, with the deal, they would get a lot more than just Fiat. They'd get the profitable Jeep and Ram divisions, the ongoing popularity of the Charger/Challenger/300, and FCA's big dealer network in the U.S.

But, of course, none of this means much if the regulators nix it.