Read this article in:
16 March, 2000The IMF general secretary, Marcello Malentacchi, comments on the hectic last week in the auto industry.
GENEVA: There is worldwide capacity in the auto industry to manufacture about 70 million vehicles per year, whereas only 53 million can be sold. This will inevitably lead to plant closures in some countries, unless the global market expands considerably by increasing the purchasing power of hundreds of millions of people in developing countries, writes Malentacchi in his new column.
But this is a too long-term objective for short-sighted capitalists. By acquisitions, mergers and venture games on the stock market, companies are trying to find shortcuts to quick profits to distribute to the owners.
As the impending giveaway of Rover car facilities to a group of speculators shows, these risky games often do not work out, especially when the rosy expectations of stockholders are not met. The Rover debacle proves that stockholder value comes before the jobs of thousands of metalworkers.
Click on the associated link and read the entire column by Malentacchi.
But this is a too long-term objective for short-sighted capitalists. By acquisitions, mergers and venture games on the stock market, companies are trying to find shortcuts to quick profits to distribute to the owners.
As the impending giveaway of Rover car facilities to a group of speculators shows, these risky games often do not work out, especially when the rosy expectations of stockholders are not met. The Rover debacle proves that stockholder value comes before the jobs of thousands of metalworkers.
Click on the associated link and read the entire column by Malentacchi.