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Joe Cappy was head of American Motors in 1986-87, when Chrysler bought it out.

Now 85, he shares his perspective on Auto News.

This paragraph caught my attention:

A merger of equals will be a failure. The Daimler-Chrysler experience was a failure. Renault-American Motors was a failure. Renault-Nissan is a failure. All of these failures were for many of the same reasons. Who runs the business and allocates the resources? The cultures and politics of the countries are quite different. For example, the French government was unwilling to keep funneling money down what they saw as a black hole at AMC in the U.S., while French factory workers were being laid off.

I didn’t realize Renault left North America in 1987 under pressure from the French government.

The more things change, the more they stay the same.

Here’s a link to the entire article:
A merger of equals? Someone has to be in charge
 

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Joe Cappy was head of American Motors in 1986-87, when Chrysler bought it out.

Now 85, he shares his perspective on Auto News.

This paragraph caught my attention:

A merger of equals will be a failure. The Daimler-Chrysler experience was a failure. Renault-American Motors was a failure. Renault-Nissan is a failure. All of these failures were for many of the same reasons. Who runs the business and allocates the resources? The cultures and politics of the countries are quite different. For example, the French government was unwilling to keep funneling money down what they saw as a black hole at AMC in the U.S., while French factory workers were being laid off.

I didn’t realize Renault left North America in 1987 under pressure from the French government.

The more things change, the more they stay the same.

Here’s a link to the entire article:
A merger of equals? Someone has to be in charge
I was hanging iron at the new AMC plant in Brampton, built by Renault, and was on hand for the start up. They fired it up, started building cars. Things were going smoothly until the first car hit the work station where the doors were to be fitted. The doors did not fit. They fooled and farted about, and still the doors did not fit. They shut down the line, by this time there were about 100 cars built with no doors. The next day Renault simply walked away. The semi completed cars were dragged out back, run over with a bulldozer, and buried. Within the week it became a Chrysler plant.
 

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Discussion Starter #5
I was hanging iron at the new AMC plant in Brampton, built by Renault, and was on hand for the start up. They fired it up, started building cars. Things were going smoothly until the first car hit the work station where the doors were to be fitted. The doors did not fit. They fooled and farted about, and still the doors did not fit. They shut down the line, by this time there were about 100 cars built with no doors. The next day Renault simply walked away. The semi completed cars were dragged out back, run over with a bulldozer, and buried. Within the week it became a Chrysler plant.
That’s right. That’s where the Renault/Eagle Premier was built.​
 

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AMC/Renault actually had a full line.
Alliance/Encore
Medallion sedan & wagon
Premier
Fuego

Eagle sedan & wagon
Eagle SX4
Spirt
Wagoneer
Cherokee
Comanche
J10
Wrangler
 

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Anyone who is interested in how Chrysler ended up with Jeep should read “The last American CEO”. And for those who don’t realize the French influence in Chrysler I only have two words: François Castaing. History is far more complicated than headlines will want to make us believe...
 

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Daimler called their merger with Chrysler "a merger of equals", but it was nothing other than a takeover. It was the fact that it wasn't an equal-party merger that made it fail.

By contrast, FIAT's actual takeover of Chrylser has turned out to be a true merger of the two companies: if Chrysler was better at something than FIAT, things were done the "Chrysler" way across the whole company, and the people running the combined company are a mix from both sides of the Atlantic.
 

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Having been through a bunch of “merger of equals” they work best when management isn’t made up of lifers from either company. Just the perception of favoritism alone drags down morale.
 
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