AC Rochester And GM Essay

Length: 2 pages Sources: 1 Subject: Business Type: Essay Paper: #2550419 Related Topics: Mergers And Acquisitions
Excerpt from Essay :

Rochester Products Division or AC Rochester began in 1908. In 1929, General Motors acquired it with Alfred P. Sloan announcing the acquisition. After consolidation, the company became Delco Appliance Division. Through achieving Division status in 1939, a second plant from Delco Appliance became Rochester Products. Because of the division, it later on provided supplies like replacement carburetors for different car brands like Chevrolet, Pontiac, and Oldsmobile.

Because AC Rochester has such a long established history, it would be an advantage for General Motors to buy it up again. In its several decades of ongoing service to consumers, they have constructed many products that companies as GM can and did use. For example, the Quadrajet carburetor, the product that made the company well-known, created great use for car companies well into the 1980's even though its creation began in the 1960's. In fact, its last application was in GM station wagons (1990 models).

GM already used products AC Rochester, already previously purchased in decades past, and has an established relationship with the company. Because of these two important things, it would make sense for GM to acquire AC Rochester. There is less guessing with how the company operates, there is also


Removing the second guessing leads to higher confidence and easier transition when it comes to acquisition and potential merging.

Businesses often require a certain level of confidence in order for productivity to increase or at minimum, remain the same. Bringing in a company that is well-known, lasted for decades, and already produced products GM used; it would be a sound decision to buy AC Rochester. AC Rochester also merged in 1981 with Diesel Equipment Division. With this move, DED provided the merge with plants in Grand Rapids, Michigan.

However, this merge and others throughout the years could spell trouble for GM. In 1988, Pense Transportation bought up the business and the merging of AC Spark Plug and Rochester Products began. Another interesting action took place in 1994 when AC Rochester operations were spun off in the Grand Rapids location. Although these mergers were done in order to cut costs, it also brought a lot of change into the company, hence the current name is now has. Is this kind of change good?

Will changing the company yet again promote another need to merge in order to cut costs? Although AC Rochester has lasted…

Sources Used in Documents:


COMPANY NEWS - G.M. Merges Units - (1988, August 30). Retrieved from

Cite this Document:

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