Well, Chinese companies are now, or about to become, major players in the fate of two iconic companies: England's MG Rover and the US' Huffy.
Nanjing Automobile has signed a deal to buy MG Rover. Huffy's Chinese suppliers plan to take a 30% stake in Huffy as well as control of the board of directors. In the case of Huffy, this action is due to poor management by Huffy. The Chinese companies are taking it over to try to recoup money owed them by Huffy.
1 comment:
You know more than I do about Huffy, Al, but I can tell you categorically that a combination of poor management and union unrest over at least two decades was the reason MG Rover went under. I was based near Longbridge in Birmingham for a number of years, close to the factory site, and took an interest in what was happening there. Too many strikes and bad management decisions brought that company to its knees.
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