This article discusses the drawbacks and benefits of a multinational merger and examines the changing market for cars.

Getting Started

Appropriate Subject Area(s):

Marketing, target market, demographics, sustainability

Key Questions to Explore:

  • What is ahead for the car industry?
Study and Discussion Activity

Introduction to lesson and task:

There are many topics to explore in this article, including the benefits and drawbacks of a merger of this nature, the changing demand for cars, the sustainability of the industry and the impact of technology.

Action (lesson plan and task):

  • Write the following from the article on the board:
    • The proposed merger of Fiat Chrysler Automobiles with France’s PSA group is admission that the future of car making is going to be highly expensive, arduous and possibly nothing more than a fight against long term decline. Bulking up will buy time, not guarantee a prosperous future.
    • Discuss with the class what this means. Take it apart and ensure a good understanding of this premise.
    • Using a T chart, have students work in pairs to brainstorm the benefits and drawbacks of this merger.
  • Distribute the article for reading.
  • In pairs, have students verity the benefits and challenges brainstormed in the T chart and add anything missed.
  • In pairs, have students illustrate how they see the future of the car industry and how it fits in the context of the future of transportation.
  • Combine pairs and have students share their vision.

Consolidation of Learning:

  • The article states that merging will produce synergies, reduce surplus capacity and combine research and development budgets.  Is this a valid solution for the changing industry and, if so, why?
Success and Additional Learning

Success Criteria:

  • Students understand why industries must constantly adapt to a changing world.

Confirming Activity:

  • In small groups discuss:
    • Many millennials and younger generations do not see cars in their future.  Is it possible to sustain an industry that is losing customers every day?