GM Makes Toyota Ponder a U-Turn on Deals

[joe1280]

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GM Makes Toyota Ponder a U-Turn on Deals

TOKYO (AP) - Toyota is keeping a close eye on the proposed alliance of General Motors, Nissan and Renault.

The three-way tie-up doesn't appear to pose any immediate business threat to Japan's No. 1 car company, which continues to grow steadily in market share and profits while going it alone for the most part. Toyota Motor Corp. has opted for only limited collaboration with rivals, on certain products for certain markets.

But a partnership that will bring struggling General Motors Corp. into the seven-year alliance between Nissan Motor Co. of Japan and Renault SA of France would have symbolic and, perhaps, political significance.

It would be the biggest ever in sheer size, boasting a combined annual production of 15 million vehicles, or about one-fourth of world production.

That has raised speculation that Toyota might ready an alternative offer if the deal doesn't work out. It has Toyota executives talking, if not revealing any plans.