LETTER TO THE EDITOR

A lot to learn from past acquisitions

To the Editor:

Your stories in recent weeks about the possibility of large acquisitions in the supplier community bring to mind the quote "Those who cannot remember the past are condemned to repeat it."

Our industry has contemplated major acquisitions in the past, and on balance they have failed. Rosy projections of market access, economies of scale and product synergies never materialized because of unforeseen events -- typically, industry volumes dropping or difficulty integrating disparate cultures. Industry-leading companies were never the same and continue to deal with legacy issues today.

CEOs would be wise to study the past successes and failures of large acquisitions to ensure that their plans serve the long-term interests of their customers, shareholders, employees and the community.

TIM HICKS

TCH Consulting

Wheaton, Ill.

0

Shares

ATTENTION COMMENTERS: Over the last few months, Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Newsletters