"Will Toyota Make a Play for GM?"

[wildcat]

It seems far-fetched, but that's the title of an article online at businessweek.com. To view the piece, click here.

[Dsuupr]

They won't, as the legacy costs are too high too assume.

[FAPTurbo]

I'd really doubt it... Toyota is already experiencing a few growing pains, and swallowing a company with like 80 vehicles would just be overkill.

Plus, it'd re-assert the growing (slowly) feeling that Toyota is an unstoppable, corporate monolith.

[longtooth]

They won't, as the legacy costs are too high too assume.

167138[/snapback]

Think about it, legacy costs are being winnowed out more with each passing week. Taking the long view, say the next 5-10 years, GM looks as viable as anyone. Provided that the focus becomes and continues to be on PRODUCT!!!! For the love of heaven, they (GM upper Management) need to concentrate their efforts on holding onto what they've got now, solidifying that, and then expansion.

GM, as currently constituted, exists as a corporation whose business is building machines for people, and in my 30 plus years with 'em, they've shown contempt for both.

[NOS2006]

It'll be a dark day if Toyota buys out an American Big Three auto-maker.. especially GM. It won't happen.

[thegriffon]

Somehow I don't think that would be what Toyota has in mind, if they make any approach to GM at all about an alliance. In any case in too many markets it would not be allowed.

[zhawk]

I pray that Toyota never tries this. I couldn't see a merger of them and GM. It would be a dark day for American muscle.

[ehaase]

At most, Toyota might try another NUMMI deal, with a Toyota platform being used for GM cars, like maybe using the Corolla platform for the next Cobalt and Ion. But I have a hard time seeing that happen.

[VenSeattle]

Could Toyota step in and offer to buy several shuttered GM plants without Union ties carrying over? That would keep Toyota from actually investing in GM and also provide GM a cash infusion.

[Dragon]

another article on the subject

http://money.cnn.com/2006/07/16/news/inter...dex.htm?cnn=yes

I know GM is already starting to improve its status, but I still get the feeling that the vultures are circling

[WCCPSGM]

GM is still too strong for Yota to play for. Plus, I fail to see the advantage for Yota. They'd get Silvarado and the big SUV's, but beyond that, few GM models are more competitive than what Toyota already has.

I think GM is a couple good CARS away from a recovery anhow.

[Newbiewar]

http://news.moneycentral.msn.com/ticker/ar...03&Symbol=US:GM

Toyota may look to block Nissan/GM deal: report

TOKYO (Reuters) - Top executives at Toyota Motor Corp. are considering options to head off rivals Nissan Motor Co. and Renault from forging an alliance with General Motors Corp. , according to BusinessWeek.

Citing unnamed sources, a July 15 article on the magazine's Web site said Japan's Toyota, the world's most profitable car maker, is considering its options and looking at different opportunities it could propose to GM.

"Toyota has no interest in seeing an alliance like this (linking Renault, Nissan and GM) take place," an executive, who asked not to be identified, told BusinessWeek.

GM, Renault SA and Nissan agreed on Friday to take 90 days to review the benefits of a potential alliance, which could lead to the birth of the world's biggest auto group with annual sales of 15 million vehicles -- the size of two Toyotas.

The decision followed a dinner meeting in Detroit between Wagoner and Carlos Ghosn, CEO of both Renault and Nissan.

A Toyota source said the company has "war-gamed" a way to assist GM, BusinessWeek said.

The magazine had no further details on Toyota's plans. It quoted Toyota spokesman Steven Curtis as saying that any talk of an offer from the company is "pure speculation."

[ellives]

In many ways, this "joint venture" BS is what has gotten GM into this mess to begin with. The "partner" learns GM's secrets and shares nothing in return other than short term low cost manufacturing.

I don't see Toyota making a play for GM in its current form. Why would they with all the legacy costs to deal with? If they wait long enough, and enough dumbass Americans continue to be Toyota products, GM will go bankrupt and somebody like Toyota can then swoop in and get the physical and intellectual GM assets for pennies on the dollar and they get to shed any pension and healthcare responsibilities immediately. This is the perverse nature of business in the US today. GM would give anything to be able to shed these responsibilities but they can't without going bankrupt but somebody else can.

[FUTURE_OF_GM]

Toyota has "war gamed" a way to assist GM...

Nice choice of words... Shows the true nature of the company.

Of course thye've "war gamed" a way to help GM. 1) They don't want Nissan and GM whipping their ass and 2) THEY want the PRIDE and PLEASURE (of the Japanese people) to destroy GM.

I DO NOT UNDERSTAND WHY TOYOTA IS SOOOOO AFRAID OF GM FALLING APART!!!! Is that not their GOAL?!?!?!? To beat/destroy/outsell/kill/out perform/murder GM?!?!?!?

MARK MY WORDS: THERE WILL BE NO SOCIAL OR POLITICAL BACKLASH WHEN GM FALLS APART We are PAST that timeframe. The politicians would've acted by now if they were truly concerned about GM -OR- Detroit in general and MOST of this country LOATHES the very ground GM occupies anyway. They've already launched a media-fueled BOYCOTT of GM products for all sorts of stupid and ignorant reasons. Look at the share!

[Guest YellowJacket894]

Toyota merging with GM and eventually taking them over would provide a tragic backlash on our economy. All of the money from the sales of GM and Toyota combined would be transfered over to Japan, never even seeing a moment of light from the American economic system.

Toyota is a cancer on our economy, a leech that has burrowed itself so deep into the skin it can't easily be pulled away. The only positive benefit Toyota (which I am tempted to actually rename "The Cancer") has given our country was a few hundred-thousand jobs and nothing else. If America doesn't wise up, Toyota may just suck us dry in a few decades due to increasing sales to white-collar Joes.

Edited July 20, 2006 by YellowJacket894

[ZL-1]

I don't think Toyota's mindset is one of merging with other manufacturers.

[Polish_Kris]

I DO NOT UNDERSTAND WHY TOYOTA IS SOOOOO AFRAID OF GM FALLING APART!!!! Is that not their GOAL?!?!?!? To beat/destroy/outsell/kill/out perform/murder GM?!?!?!?

169177[/snapback]

No, that's what YOU want their goal to be, you're living in you own little world... FOG

[balthazar]

No- he's right on the money, PK. Just because you may happen to like their product does not mean there's an ounce of good intention in the corporate heart.

[FAPTurbo]

So how the hell would Toyota go about blocking a Renault-Nissan Deal?

Did they not consider that maybe, just maybe, that GM's board expecially Wagoner and Lutz will want nothing to do with Toyota?

I hope these guys show some testicular fortitude and say no to Toyota. As much as I'd like to see GM stay seperate from any company, I'd rather they partner with Nissan - Renault then Toyota.

[Sixty8panther]

Toyota will not merge with or buy out GM for the same reason

that they do not want GM to go out of business: they would

gain such a huge percentage of the market they would be

considered a monopoly. I think that's still a legit concern today

same as when GM had almost 2/3rds of the US market they

were threatened with being broken up by the government.

[Newbiewar]

Toyota will not merge with or buy out GM for the same reason

that they do not want GM to go out of business: they would

gain such a huge percentage of the market they would be

considered a monopoly. I think that's still a legit concern today

same as when GM had almost 2/3rds of the US market they

were threatened with being broken up by the government.

169889[/snapback]

SO they introduced...

... BADGE ENGENEERING to the MAX