BYD Chinese Car Manufacturer and Saturn Car Inc. Would it be a good merger for future - Essay Example

BYD AUTO & SATURN CARS INC. WOULD IT BE A GOOD MERGER FOR THE FUTURE? XXXXXXXXXXXXX XXXXXX XXX ‘BYD Auto’ is one of the leading s in China’s automotive industry. Founded in 2003 the company flourished and acted independently; self-manufacturing the parts of their cars right down to the engines and car batteries. BYD Auto started exporting cars to South America, Africa and the Middle East in 2006 with plans of targeting the European and Israeli markets. The company schemes to be the first one to introduce Hybrid cars and Electric cars to the roads at a large scale, however critics comment on the company’s inability to come up with new models for their cars and blame them for copying other famous brands.

Saturn Car Inc. A subsidiary of ‘General Motors’, has been providing quality automotive vehicles for the roads of United States since the year it was formed in 1985. The company had all the signs of a successful company with large international export chains and quality assured cars till the decision was made to sell the brand to ‘Penske Automotive Group’ in 2009. The branch was later set on a path of complete shut down when Penske decided to back out of the deal. Keeping in lieu the brief introductions of the two companies it can be deduced that BYD Auto’s intentions to expand its market to the United States and Europe lack only recognition and trust of the public.

Their initiative of making environment friendly cars on such a large scale gives them an upper-hand in the international market however their reputation of copying models will have a negative effect on their sales in the new market. On the other hand Saturn Car Inc. Has a perfect public imagine regarding their quality and value of the brand but the company is on a verge of complete shutdown despite their sales and recognition in the U.S. market. If there was a ‘merger’ to occur between the two companies; Saturn Car Inc could be saved from a complete shutdown but they would surely have a little change in technology in the environment.

BYD Auto’s problems regarding the U.S. markets could be solved up to a certain extent by a merger with Saturn Car Inc and the company could surmount some of its issues regarding the duplication of famous brands of cars. If a merger were to occur between BYD Auto’s and Saturn Car Inc or the latter were to be bought by the prior, the result would partially be positive in nature. Both the company’s major problems could be settled (ignoring the rise of other minor complications). It could consequent in a corporation that combine’s the environment friendly cars and their large productivity to the market name already recognised and trusted by the public.

BibliographyJerry Garrett, ‘Chinese Cars inch Closer to U.S.’, The New York Times, Published January 16 2009.‘Saturn Corporation’ Wikipedia; The Free Encyclopaedia, Viewed on 19 February 2010,