GM BUYS OE!
This is a fantasy post.
Detroit, 4/21/01. John Smith, CEO of auto giant GM, today disclosed that GM had made a stock offering to Orbital Engine Corp. to acquire all assets of the obscure Australian company. Orbital has developed and licensed its unique fuel management system to small engine makers and several automakers, none of whom has elected to utilize the Orbital system in mass market automobiles. The recent nosedive of OE's share price stimulated the move. Mr. Smith said, "We can buy OE lock, stock, and barrel for less than $200 million. That's a rounding error in our accounting system. We finally have confirmed that OE does everything it's claimed to do in the area of economy, emissions, reliability, and ease of service. It makes no sense for GM to pay royalties to an Australian company when we can buy the whole business, and collect royalties from our competitors." Mr. Smith explained that Ford and Daimler-Chrysler would be crazy not to adopt the system ("...it's that good..."), and that GM would have to comply with OE's prior agreements with the other companies. Mr. Smith expects that the royalty payments, in the hundreds of millions per year, will repay GM's investment within a year or two, and expects the Orbital Combustion Process, as it is known, will remain the dominant fuel management system for a couple of decades until fuel cells become practical.
Note: I made this up, but it could happen. |
