Dr. David E. Cole, Chairman of the Center for Automotive Research (CAR).
Q. According to news accounts, Ford, Chrysler and General Motors have each been involved with merger talks in various combinations. Would any of these proposed merger combinations make particular sense in your view? Should overseas-based producers also be included in this merger speculation?
A. It is hard to say. Those that know aren't talking and those that don't are. Actually the mid-and long-term future looks very bright for the industry because of the release of pent-up demand, very large cost reductions by the domestic 3 and the reduction of excess capacity. I think record profits are in the future if they can live that long. I think they will. There are a number of financial options including some combination of the companies. They will not do anything unless it leads to benefits for both parties. I think some overseas companies are in the mix, both from the developed and developing worlds.
