Impact of Corporate Takeovers on Automobile Industry-A Review

Today's business world deals with an increasing phenomenon of Corporate takeovers, a process through which companies gain access to some tangible and intangible resources. The study reveals the possible impacts of takeovers regarding the brand perspective in the automotive industry, through the eyes of the case studies incorporated in the paper. Further the study observed that the companies that merge sometimes face difficulties in establishing the corporate identity of their new formed company. While both are eager to keep their own corporate and product brands, the new portfolio becomes too complex and does not allow cost savings synergies in terms of components equalization, production rationalization or marketing. However, in the case of acquisitions the process of adopting a new corporate identity applies mostly to the acquired company and overall it is a bit more clear what strategy should the acquired company adopt. Investments usually made by acquiring company seem to make portfolio more competitive.