Toyota denies deal with GM

[IMPALAon20s]

source

Toyota president denies deal with General Motors coming soon on hybrids

Yuri Kageyama
May 19, 2005

TOKYO (AP) - Toyota Motor Corp. president Fujio Cho said Thursday he affirmed a partnership with General Motors Corp. at a recent meeting with GM chief executive Rick Wagoner but denied a deal was coming soon to share hybrid technology.

"It's not possible," Cho told a small group of reporters at a reception for auto officials in Tokyo, while acknowledging future talks may produce results.

Cho said GM and Toyota have been exchanging information about another ecological technology called fuel cells, but they have not reached a point of developing technology together.

The Japanese media have been rife with speculation that Toyota and GM may come up with a new deal on environmental technology, such as hybrids or fuel cells, as part of a 1999 pact the automakers have to work together on such technology.

Hybrids produce good mileage by switching between an electric motor and gas engine, and Toyota has an edge in that technology with its popular Prius sedans.

Fuel cell is still largely an experimental technology that's pollution-free because the vehicles run on energy produced when hydrogen stored in a fuel tank combines with oxygen in the air.

At a time when booming Japanese automakers are grabbing U.S. market share from faltering GM and Ford Motor Co., Toyota and Japan's other manufacturers are growing jittery about a replay of trade tensions that surfaced during the late 1980s and early 1990s.

Wagoner, who met with Cho and other officials over dinner last weekend while visiting the Aichi World Expo in Japan, discussed the importance of GM and Toyota ties as a legacy, Cho said.

"We agreed we must make sure this pipeline of partnership grows stronger, not weaker," Cho said.

Toyota, based in Toyota city, and Detroit-based GM have a longtime partnership that does not involve stakes in each other. They run a plant together in California.

Cho doesn't expect anti-Japanese sentiments to flare up immediately in the United States, but Toyota officials have been watching closely for any signs, he said.

Compared to two decades ago, Japanese automakers have opened more U.S. plants and are increasingly being seen as good corporate citizens that create jobs and good products for Americans.

Earlier this week, Toyota announced it will start making hybrids at its plant in Kentucky.

[IMPALAon20s]

Hybrids produce good mileage by switching between an electric motor and gas engine, and Toyota has an edge in that technology with its popular Prius sedans.

maybe they forgot to mention toyotas hybrids also completly turn off to conserve more energy, unfortunately it not convienient while driving!!!

[PaleGreen]

How about the blast on TCC from Toyota's U.S. chief of operations, Jim Press:

"Recalling the hybrid scoffers at the outset of the Toyota and Honda U.S. debuts in late 1999 and early 2000, Press made a wry comment. "We invested in hybrids. Another company bought a humongous SUV company. You make your decisions and you live with them."

OUCH!

http://www.thecarconnection.com/Indu...173.A8629.html

[awalbert88]

Originally Posted by IMPALAon20s

Compared to two decades ago, Japanese automakers have opened more U.S. plants and are increasingly being seen as good corporate citizens that create jobs and good products for Americans.

As opposed to the domestic automakers, which have long employed Americans and give more profit back to the auto workers in the form of benefits than the Japanese. But hey, who's counting?

[Vintalage]

Originally Posted by PaleGreen

How about the blast on TCC from Toyota's U.S. chief of operations, Jim Press:

"Recalling the hybrid scoffers at the outset of the Toyota and Honda U.S. debuts in late 1999 and early 2000, Press made a wry comment. "We invested in hybrids. Another company bought a humongous SUV company. You make your decisions and you live with them."

OUCH!

http://www.thecarconnection.com/Indu...173.A8629.html

That's a blow.

[IMPALAon20s]

Originally Posted by PaleGreen

How about the blast on TCC from Toyota's U.S. chief of operations, Jim Press:

"Recalling the hybrid scoffers at the outset of the Toyota and Honda U.S. debuts in late 1999 and early 2000, Press made a wry comment. "We invested in hybrids. Another company bought a humongous SUV company. You make your decisions and you live with them."

OUCH!

http://www.thecarconnection.com/Indu...173.A8629.html

Mac Gordon made that comment. an automotive journalist.

[PaleGreen]

Originally Posted by IMPALAon20s

Mac Gordon made that comment. an automotive journalist.

Ummm... what part of "Press made a wry comment" didn't you understand?

[PaleGreen]

Here's the full article I posted the blast from:

Waiting Lists Sprout for Lexus RX400h

The new hybrid-engine Lexus SUV, the RX400h, has turned into a gotta-have piece for well-heeled stars and celebrities, according to Toyota's U.S. chief of operations, Jim Press. Waiting lists of up to six months have sprouted at the 204 Lexus dealerships, says Press, despite the 400h's suggested retail price of $48,535. By far the highest-priced hybrid vehicle on the market today, the RX400h went on sale April 15. Its instant-success aura was forecast last January by AutoNation CEO Mike Jackson, the nation's largest dealership network, who forecast then that the 400h would become a status symbol right out of the chute.

Through May 12, says Lexus spokesman Bill Ussery, 2885 units have been retailed. He says the waiting time for sold orders has been trimmed to an average of 90 days, and more units have been promised by the factory in Japan . "We should get about 28,000 units all told this year," says Ussery, "about 4000 to 6000 more than they first promised."

Press is bullish to the extreme on Toyota 's hybrid-vehicle plans. Interviewed by media on the eve of Toyota's announcement that the top-selling Camry would get a hybrid edition - to be built at the Georgetown, Ky., assembly complex - Press renewed his forecast that "by 2030, everything will be a hybrid." Toyota is clinging to plans to build a million hybrids a year early in the next decade. After Camry, Toyota is looking to carry the gas-electric technology into the full-size Sequoia SUV and Tundra pickup in the 2007-08 time frame.

Recalling the hybrid scoffers at the outset of the Toyota and Honda U.S. debuts in late 1999 and early 2000, Press made a wry comment. "We invested in hybrids. Another company bought a humongous SUV company. You make your decisions and you live with them."

[ChevroletRevived]

Why did GM sign some pact in 1999 to develop technology with Toyota? Why in the world would they want to do that? That is dumb. I hope they don't share their edge in fuel cells with them..that is completely stupid!

[Globalist]

Originally Posted by ChevroletRevived

Why did GM sign some pact in 1999 to develop technology with Toyota? Why in the world would they want to do that? That is dumb. I hope they don't share their edge in fuel cells with them..that is completely stupid!

C'mon there are always some kind of pacts and programs between automakers. This is not Cold War.

New technologies need standards and it takes time and cooperation to develop them.

[saturnsteve]

Originally Posted by ChevroletRevived

Why did GM sign some pact in 1999 to develop technology with Toyota? Why in the world would they want to do that? That is dumb. I hope they don't share their edge in fuel cells with them..that is completely stupid!

Some times you gotta give a little, to get a little!

[psece]

Originally Posted by Globalist

C'mon there are always some kind of pacts and programs between automakers. This is not Cold War.

New technologies need standards and it takes time and cooperation to develop them.

This is the second time that you have been saying that this is a positive. Do you know how new technologies are created and designed cheap enough so that you can buy it on the showroom floor? PROFIT! If GM is not making a profit, it cannot be reinvested into the creation and application of new technology. Business is war. No one, I mean NO ONE gives away technology to be a good citizen of the world. Those that have are out of business in a hurry. In the other thread I told you that Toyota wants Fuel Cell Technology from GM. That they weren't going to give up any hybrid technology without GM buying it... Looks like I was right on that mark.

Hey Globalist, where are your kids going to get a job in the future? Do you think that Toyota/Japan will hire your kid or a Japanese kid first?

GM is very important to the economy of the US. Every American company is... Give them a break and at least look at them first. I am all for the common good but not at the expense of my countries future.

[Globalist]

Originally Posted by psece

This is the second time that you have been saying that this is a positive. Do you know how new technologies are created and designed cheap enough so that you can buy it on the showroom floor? PROFIT! If GM is not making a profit, it cannot be reinvested into the creation and application of new technology. Business is war. No one, I mean NO ONE gives away technology to be a good citizen of the world. Those that have are out of business in a hurry. In the other thread I told you that Toyota wants Fuel Cell Technology from GM. That they weren't going to give up any hybrid technology without GM buying it... Looks like I was right on that mark.

Hey Globalist, where are your kids going to get a job in the future? Do you think that Toyota/Japan will hire your kid or a Japanese kid first?

GM is very important to the economy of the US. Every American company is... Give them a break and at least look at them first. I am all for the common good but not at the expense of my countries future.

First, I didn't said that GM is giving away anything. I just said that it is normal for two big companies to talk to each other, and exchange experiences or work on standards, etc.

And, YES I know how new technologies are developed. I am an engineer and I hold 14 patents related to very advanced technologies.

I don't think Toyota wants GM's fuel cell technology, because Toyota, DCX and Honda were the first automakers to lease fuel cell vehicles (FCV) in California and elsewhere, and accumulate real-world data about FCVs. This doesn't mean that GM is behind. Each company choose a different path on how to get future customer's feedback.

Concerning my kid's future jobs--That's the fruit, so I am more working on the roots. I am not worried about it for now, because the future never scared me. I am working very hard to give them a good education, expose them to as many cultures and languages as possible. I hope they will have faith in GOD. That's more important than anything.

[gilli77]

Originally Posted by ChevroletRevived

Why did GM sign some pact in 1999 to develop technology with Toyota? Why in the world would they want to do that? That is dumb. I hope they don't share their edge in fuel cells with them..that is completely stupid!

Welcome to the global economy. Fuel cells technology, hybrids and replacements for crude oil products all take time and money to develop. it is a lot easier for the auto manufacturers to join forces both in terms of R and D concepts and total costs to find the best technology available for less cash then it would otherwise take. Fuel cell technology is going to cost a lot to develop and with out deals such as this or heavy subsidization from governments there would be no economic incentive to the companies. This isn't a stupid move by GM at all, in fact if this could happen it could be one of the best moves they have ever made.

[gilli77]

Originally Posted by psece

This is the second time that you have been saying that this is a positive. Do you know how new technologies are created and designed cheap enough so that you can buy it on the showroom floor? PROFIT! If GM is not making a profit, it cannot be reinvested into the creation and application of new technology. Business is war. No one, I mean NO ONE gives away technology to be a good citizen of the world. Those that have are out of business in a hurry. In the other thread I told you that Toyota wants Fuel Cell Technology from GM. That they weren't going to give up any hybrid technology without GM buying it... Looks like I was right on that mark.

Hey Globalist, where are your kids going to get a job in the future? Do you think that Toyota/Japan will hire your kid or a Japanese kid first?

GM is very important to the economy of the US. Every American company is... Give them a break and at least look at them first. I am all for the common good but not at the expense of my countries future.

okay so the the plants that toyota and honda have in North America are only staffed with japanese people? gimme a break. Toyota and GM are both global companies always looking to expand in to new markets. GM is interested in China along with all of the other auto manufacturers. GM is very important to the economy of the US but only because the US markets have decided that it should be. Toyota is also very good for the US, so is honda so is any other auto company that makes/sells/distributes parts, cars or products despite where the head office is. Toyota wouldn't be in the US market if they didn't make money and contribute to the US economy. other companies such as renault have tried to crack the US market and failed so your argument that implies that GM is the only car company that matters in the US is really weak.

As for the technology, GM's profits are in the toilet right now, where do you think they will be if they let new technology emerge on the market without any sort of GM product offering? you thought they took a dive when the styling was crap, wait until they can't compete with the same technology. This is the best time to get in to a partnership to develop joint technology, it wouldn't cost GM as much which means they wouldn't need to divert as much profit in to R and D as they would need to otherwise to get the same results.

also remember that any technology that would come out of this partnership would be shared, a joint patent held by both companies, both would make a profit when they finally sold vehicles using the technology. Lastly, businesses that fail to recognize opportunities to share technology in a mutually beneficial setting will also fail to grow and be out of business in a hurry. It is a delicate balancing act.