Toyota considering GM linkup

[vince337]

What Next!!

Link:
http://www.autonews.com/apps/pbcs.dl...t=newsletter08

[mkaresh]

Automotive News is reporting that BusinessWeek will be reporting that Toyota is considering a GM linkup in order to block an alliance with Renault-Nissan.

Text:

Toyota Motor Corp. is considering making a bid to link with General Motors, according to a report in BusinessWeek magazine. The move would be aimed at trumping a proposed alliance between GM and Renault-Nissan.

The magazine reported Saturday that Toyota "is considering its options and looking at different opportunities that they could propose to GM." It said Toyota executives have "war gamed" possible scenarios by which it could help GM with its turnaround.

BusinessWeek quoted an unnamed Toyota executive who said, "Toyota has no interest in seeing an alliance like this [involving Renault, Nissan and GM] take place."

GM CEO Rick Wagoner and Renault-Nissan boss Carlos Ghosn met Friday night in Detroit. The companies later issued a joint statement saying they will take about 90 days to explore potential benefits of a tie-up.

Wagoner hinted to Automotive News last week that deals with other automakers besides Renault-Nissan are possible.

"Could other things arise?" he said. "Sure, they could happen any time, but nothing else I can talk to you about today."

http://www.autonews.com/apps/pbcs.dl...t=newsletter08

Murrow [post below] found a link to the BW article:

http://businessweek.com/bwdaily/dnfl...714_330155.htm

[TiburonJT]

Hmm, now things are getting interesting . . .

[New_Mexico_Sunset_on_Rt66]

Dosen't surprise me. Actually I was expecting this, and wonder if that is Kervorkians plan. To start a bidding war?

As I said earlier in the week, I worked for a Forune 500 aerospace firm in the late 1990s when we were gonna merge with another large US aerospace firm. Then GE stepped in to make their own offer. The GE offer was finally bebunked because of anti-trust, inpart, I think. Then the deal with the other firm went through.

Many on Wall Street saw the letter last Friday and wondered, "OK, what is Kerkorian up to?" Hence, the stock goes up.

[mkaresh]

People who bought the stock around $20 will be making out, though not necessarily for the right reasons.

Just a note: anti-trust would likely block any full merger, certainly with Toyota, probably also with R-N. Another reason for aiming for an "alliance."

[Stéphane Dumas]

Are Toyota is really afraid of Renault?

(and in case if the Autonews links vanishes, here the link to BusinessWeek article http://businessweek.com/bwdaily/dnfl...714_330155.htm )

Then Toyota should check his rear view mirror (spike in recent recalls and Hyundai behind them), they could be more surprised.

[Ty_99]

that is an interesting development. Something to keep an eye towards

[DuSpinnst]

I don't care who or how as long as it's an Alliance and it is a GREAT deal for GM.

[Murrow]

Here's the BW article...

http://businessweek.com/bwdaily/dnfl...714_330155.htm

[GMCSonoma]

Amazing... this crappy car company is a worthwhile commodity suddenly! I wonder what the "balance-seeking" presbyterate will cry about this one!

[nadepalma]

Originally Posted by GMCSonoma

Amazing... this crappy car company is a worthwhile commodity suddenly! I wonder what the "balance-seeking" presbyterate will cry about this one!

You know it's kinda funny --- GM is supposed to be worth less than dirt to so many in the automotive world, yet we're now seeing Toyota possibly wanting to link up? It's pretty amazing when you think about it. I wonder what the auto journalists think about this...you know, the ones who always lamblast GM?

[Ty_99]

Originally Posted by nadepalma

You know it's kinda funny --- GM is supposed to be worth less than dirt to so many in the automotive world, yet we're now seeing Toyota possibly wanting to link up? It's pretty amazing when you think about it. I wonder what the auto journalists think about this...you know, the ones who always lamblast GM?

Maybe just maybe the world is starting to come around to GM again, Maybe just maybe GM can start getting some worthy reviews.
But who knows they will still probably find something beat GM down about.

[mgescuro]

INTERESTING.
They've already run through a couple of scenarios at Toyota!! Hell... GM hasn't even run scenarios.. and there is Toyota.

If this is true, what really worries Toyota is GM's access to China. This would mean near immediate access for Renault-Nissan. Furthermore, Nissan is the #2 Japanese car maker in the Japanese domestic market. Nissan gaining the new development prowess of GM's global engineering and design department would really chip away at Toyota's dominance at home. Also, with a GNR alliance, Nissan would get an inexpensive way to open a new factory in the US, thereby bypassing billions of startup costs. THis would trump Toyota's plans for Tundra and Tacoma. GNR woud also be a European powerhouse, with a combined 20% of the Euro marketplace. That would nearly block Toyota's entrance into that market.

As Toyota really has no major alliance but their own worldwide, they would be at a disadvantage, even though they have about $25B in ready cash.

I believe they realize that GM will always be a competitive threat, even though they aren't doing so well in the marketplace. They realize that it's only a matter of time before they rectify their own situation, and the have seen Wagoner's process in cutting costs and consolidating business units. They've probbaly run their own scenarios as well.

[2005 Equinox LS]

GM would in my opinion have a lot more to gain from Toyota than with Renault-Nissan. They could learn a few quality tricks, and maybe replace some of the engines people are complaining about. And that is just the tip of the iceburg. Toyota could learn how to make a cost efficient V8 from GM. GM-Toyota working together would be quite a force.

[GM_Fanatic]

WOW! Now I love the idea of a Nissan/Renault/GM linkup if it has Toyota this scared!