Toyota-Ford: No Merger, Lots of Options

[doh]

http://yahoo.businessweek.com/global...117_829468.htm

Toyota-Ford: No Merger, Lots of Options
Alternatives include rebadging the Prius, co-producing cars in emerging markets, or assembling Toyotas at Ford's U.S. factories

Reports that Ford (F) Chief Executive Officer Alan Mulally and Toyota (TM) Chairman and former President Fujio Cho met in late December led to a raft of headlines over a possible Toyota-Ford tie-up (see BusinessWeek.com, 12/27/06, "And Now: Ford and Toyota")—only to have both companies play down the meeting. Not unreasonably, officials said a meeting between rivals, particularly with Mulally being new in the job, was nothing out of the ordinary. "We meet regularly with other automakers on a variety of topics of mutual interest," said Ford in a statement. Others noted that Toyota and Ford tried to form partnerships five times between the 1930s and 2000, but without anything of substance ever materializing.

Following an interview with Toyota CEO Katsuaki Watanabe on Jan. 17 in the Nihon Keizai, Japan's leading business daily, you can expect more of the same. In a wide-ranging interview, Watanabe offered little new but admitted he was happy to talk with Ford on possible technology tie-ins if the struggling U.S. automaker so wishes.

For all that, Watanabe doesn't sound especially enthusiastic. Asked if Toyota plans to build on the two firms' current hybrid relationships, Watanabe said any new tie-ins would likely center on technological development but Toyota hasn't received specific requests and the parties haven't started talks. At present, Toyota provides components for gasoline-electric hybrid vehicles to Ford through group firms, such as Aisin Seiki.

Thinking About Synergies?
Watanabe was equally lukewarm about the prospects of extending the two firms' relationship to areas beyond environmental technologies. While ruling nothing out, he said it "would depend on the substance of the proposal" and that the possibility "is not zero." Not the words of someone chomping at the bit to do a deal.

Still, Toyota watchers say Watanabe could be playing his cards close to the vest. Koji Endo, an auto analyst at CSFB in Tokyo, says he wouldn't be surprised if the two firms were already thinking seriously about synergies. "My guess is that they started to talk about what they can do together rather than what they're aiming at," Endo says. He doubts Toyota would take an equity stake in Ford, though, for fear of a backlash in the U.S. That's probably a smart move given Toyota's concerns over how U.S. car buyers and legislators will react if, as widely expected, it overtakes GM (GM) this year as the world's No. 1 automaker (see BusinessWeek.com, 12/13/06, "Top Spot in Sight, Toyota's Not Slacking").

Endo also identifies several areas where working together could aid both firms, such as joint purchasing agreements or co-producing cars in other markets, such as India, Russia, or Brazil. The latter could prove attractive to Toyota, which lags rivals in some of the world's fastest-growing markets

[likearock00]

Diplomatic bull......nothing happening here.

[Ming]

Alternatives include rebadging the Prius, co-producing cars in emerging markets, or assembling Toyotas at Ford's U.S. factories

HA! I love it (not). Now, not only will GM be reskinning and selling Toyota Vibes or who knows what else with the anachronism called NUMMI, but Ford may sell rebadged Priuses or assemble Toyotas at its own factories as well ?

Of course, will Toyota sell Ford or GM product in this new millenium? Noooo. Maybe in some backwater "emerging market" where no one is looking...

GM and Ford have to sell Toyota product because (in Lexus announcer's snobbish Country Club voice) - Toyota engineering is superior.

So whether I choose to support GM or Ford, even if I don't buy a Toyota engineered and rebadged car, I'll always be supporting Toyota just a tiny little bit?

Please. Just end it now, Detroit and surrender to Toyota.

I'll probably buy a Suzuki and then 2 weeks later Toyota will announce that they are buying Suzuki as well.

I can see Ford execs chomping at the bit. "Will you allow us to rebadge and resell your Prius, or maybe even your Tundra, oh mighty Toyota? Puh-leeeeze?"

This is what Detroit has been reduced to? A reseller or assembler of Toyotas? I hope not.

Meh, just probably another overreaction of mine, but the thought of Ford and GM both selling Toyota-engineered cars under their own badges (while Toyota continues to cream them both in the marketplace) was just too much to contemplate.

[ionlybuyGM]

this is definitely not good for the US market!!if you think bout it Toyota Mustang,Ford Tundra,etc.if Toyota teams up with Ford its not good for GM since Toyota is aiming at being #1 and 2 of GMs brands are damaged goods with no help for 07 cept for the CUVs and the GMT900s..GM is definitely in trouble if they do combine some products and/or produce a new car with a current platform..and GM would be the only one left of the BIG THREE to not be bought into or combine most of its services with another company..I just hope Ford sticks to its own guns and goes with GM not Toyota!!

[Xenon]

Ford's small engines are already Japaneese. I don't see anything alarming.

[Extreme4x4]

Oh............. you mean Mazda............... who they own???

[HEVguy]

Originally Posted by doh

He doubts Toyota would take an equity stake in Ford, though, for fear of a backlash in the U.S. That's probably a smart move given Toyota's concerns over how U.S. car buyers and legislators will react if, as widely expected, it overtakes GM (GM) this year as the world's No. 1 automaker (see BusinessWeek.com, 12/13/06, "Top Spot in Sight, Toyota's Not Slacking").

Ha!

*** Backlash follows ***

Boo Toyota!!

*** End Backlash ***

Ha, ha!

[gwwyjjliu]

I heard Toyota is shopping around the US for a new plant. Perhaps Ford would sell Toyota one of its soon-to-be shuttered assembly plants in exchange for some hybrid technology that Ford could adapt to one of its vehicles, like the Fusion.

Another scenario would be that Ford and Toyota join forces in some place like China, where both are behind market leaders GM and VW and are struggling to catch up.

[56 Starchief]

the media loves to skew things as we all know. speculation remains speculation.

[asim]

Let's just wait and see what actually happens. The guessing really isn't going to bring us far.

[PocoToro]

Yes Ford and Toyota together.........Ford can teach Toyota a few things on how to conduct recalls...........

[Globalist]

Originally Posted by PocoToro

Yes Ford and Toyota together.........Ford can teach Toyota a few things on how to conduct recalls...........

Good one.

[griswold44]

Originally Posted by Extreme4x4

Oh............. you mean Mazda............... who they own???

Controlling interest. 33%.

[Jig Saw]

Wasn't there a Toyota 4 banger in the 1986 Chevy Nova?

[Geotpf]

Originally Posted by Ming

Of course, will Toyota sell Ford or GM product in this new millenium? Noooo. Maybe in some backwater "emerging market" where no one is looking...

As far as I know, Toyota has never rebaged any vehicle made by another company under thier badge-ever, anywhere on the planet, with the exception of Daihatsus (which Toyota owns/controls, so that hardly counts). They go the other way all the time, of course. NUMMI product has always been Toyotas that were then rebadged under GM's brands (Chevy Nova, then Geo Prizm, then Chevy Prizm (all rebadged Toyota Corollas), and the Pontiac Vibe (a rebadged Toyota Matrix, which is merely a wagon version of the Toyota Corolla)). Holden once sold a rebadged Toyota Camry. The closest may be the supermini Toyota Aygo sold in Europe (and possibly coming to the US later), which is the same as the Citroen C1 and Peugeot 107-one factory makes all three in a joint venture, and determining how much Toyota DNA is in it is tricky (since it's an entirely new vehicle, created for the joint venture (unlike the NUMMI product)), although the gasoline engine is a Toyota-but the Diesel one is a Ford-PSA joint design. The website for the factory does blather on about the Toyota Production System and Kaizen and other Toyota-speak, however.