| BUSINESSWEEK ONLINE : JANUARY 25, 1999 ISSUE | ||||||||
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| INTERNATIONAL -- INTERNATIONAL COVER STORY
Forces Behind the Race to Merge OVERCAPACITY More than 20 million units of manufacturing overcapacity, plus downward pressure on prices, are forcing auto makers to slash costs and swallow rivals. TECHNOLOGY Auto giants want to amortize heavy research and development investment in new high-tech features over a greater number of cars. CASH The industry's biggest players have more than $100 billion in cash for deals, while smaller, less profitable players are seeking suitors. Europeans and Americans also have lofty share prices that allow them to swallow up smaller companies. CULTURE Nationalism is declining in Europe as the new single currency spurs companies to compete, while in Asia economic crisis is compelling companies to consider foreign partnerships as never before. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ |
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