Consolidations and mergers

Given past strategies of auto TNCs and the industry's globalized structure, the worldwide economic crisis has caused a dynamic that substantially escalates consolidation pressures. This presents many challenges and potential threats for workers. It is essential that trade unions are fully involved from the outset of any contemplated restructuring to guarantee that decisions represent the broad interests of workers and communities rather than narrow financial interests alone.

At the close of 2008, the head of Fiat was widely quoted as saying that over the subsequent two years only a half dozen mass-volume auto companies would remain. While this specific view is not generally held across much of the industry or by many governments, a difficult and challenging process of restructuring and possible integration has begun to unfold involving a number of companies. Preliminary ground work for Fiat and Chrysler to integrate operations has been set in motion. General Motors is undergoing wrenching restructuring affecting workers across nearly every region and particularly in North America and Europe. Challenging issues have arisen for VW and Porsche, as well as for some commercial vehicle manufacturers. Other companies continue to enter into different types of limited forms of partnerships related to design, co-production and parts procurement.

Supply chain consolidation is expected to accelerate. Even before the onset of the crisis, assemblers were pushing to reduce the number of direct suppliers while first tier companies tightened their rationalisation of production sites. Vast numbers of jobs are at stake. To avoid further damage, normal credit lines need to be restored and industrial policies implemented that upgrade supply chains and protect workers.