Sunday, July 10, 2005

Big Three Carve Outs....

Are we going to see some large private equity players take a shot at carving out portions of the manufacturing operations of the Big Three North American auto manufacturers?

Its just a though, but it may be a way for the big three to cut some of their fixed cost, while maintaining their sales and distribution networks. Some people out there have similar ideas.

We've seen it done recently in other sectors, although I think that Ford has it backwards with its recent Visteon play or should I say re-play. One could say that Ford is a contrarian in the face of large outsourcing/carve-out deals, but given recent strategies at the North American auto makers, one could be forgiven for thinking that Ford is missin' da' boat.

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