[doh]

http://www.forbes.com/2008/04/02/fu...uity-cx_vk_0402markets1.html?partner=yahootix

HONG KONG - Toyota Motor is reportedly planning to double its stake in Fuji Heavy Industries, aiming to use the production capacity of the Subaru maker to help it seize the position of world's largest carmaker.

Toyota (nyse: TM - news - people ) may spend up to 30 billion yen ($294.7 million) to raise its interest in Fuji Heavy to about 17% from the present 8.7%, buying shares directly from Fuji Heavy, according to Japanese news reports.

The deal would give Fuji Heavy, which has been struggling with declining sales and spending cuts, cash to put toward developing new models. The companies could jointly develop a sports car. Toyota intends to subcontract production of some of its subcompact models to Fuji Heavy's factory in Ota, Gunma Prefecture, Nikkei News reported Wednesday, without naming sources.

The news sent shares of Fuji Heavy up as much as 9.5%; they were changing hands at 438 yen ($4.30) at noon, up 6.6%. Toyota gained 3.8% to 5,210 yen ($51.16).

Toyota declined to confirm the report, while a spokesman at Fuji Heavy said the two carmakers have been in talks about expanding collaboration, but no plans had been finalized yet.

Nikkei and Jiji Press said a deal could come by the end of April.

 

[YupYupYup]

It is known that Toyota has been a little upset that they could not clinch the top spot by now...So they are going to do it through acquisition, not internally, to prove their point. I wonder if the press will point this out like they point out that Holden is "not" GM, or Opel is "another company"?

 

[skylark68]

I have to admit that it might be interesting to see a Toyota/Subaru developed sports car. I imagine it wouldn't be cheap though. A sort of SVX/Supra combination...

 

[New_Mexico_Sunset_on_Rt66]

Since this artilce mentions the #1 spot, a mention of GM is warranted. From GM's perspective, GM needs to stay focused on profitablility. If profitablility means less products, and giving up the #1 slot, then so be it.

A big part of GM's current negative perception stems from GM's zeal in the past to keep the #1 slot. The result was parking lots full of brand new 2 year old products.

GM will become profitable by continuing to focus on executing on product, with an attention to the "small things" and details. Acting like a "start-up" if you will.

Once profitable then positive perception will follow. Perception and profitablility are closely tied, with either leading the other at random points in time. Profitablity means a better perception, and a better perception yeilds profitablility.

Growth, then follows profitablity.

 

[FierySolstice]

It is known that Toyota has been a little upset that they could not clinch the top spot by now...So they are going to do it through acquisition, not internally, to prove their point. I wonder if the press will point this out like they point out that Holden is "not" GM, or Opel is "another company"?

I thought Opel and Holden were part of GM. Are they not? What is the deal with them?

 

[Ambalanche]

I thought Opel and Holden were part of GM. Are they not? What is the deal with them?

They are, but the press likes to treat them as seperate companies. The press will basically list them as part of GM or seperate to suit their bias' for that article.

 

[khefer]

http://www.forbes.com/2008/01/18/gm-shanghai-automotive-markets-equity-cx_vk_0118markets04.html

GM Wants Bigger Piece Of China Joint Venture
Vivian Wai-yin Kwok, 01.18.08, 9:38 AM ET

HONG KONG -
After posting its lowest sales growth in five years in China last year, General Motors is reportedly planning to raise its stake in a joint venture called SAIC-GM-Wuling, as a ready way to expand in the country's light truck market.

Based in Liuzhou, in the Guangxi Zhuang Autonomous Region in southwestern China, SAIC-GM-Wuling manufactures a range of Wuling brand minitrucks and minivans as well as the Chevrolet Spark minicar. The company was formed by GM China, Shanghai Automotive Industry Corp. Group and Liuzhou Wuling Automotive Co. in 2002.

Currently, Shanghai Automotive Industry Corp. is the biggest shareholder in the three-way joint venture with 50.1% interest; while GM China holds 34% stake and Liuzhou Wuling Automotive controls 15.9%. GM is now discussing with Shanghai Automotive Industry Corp. and its parent company a proposal to raise GM’s stake in SAIC-GM-Wuling, Shanghai Securities News reported Friday...

 

[tgagneguam]

Toyota Motor is reportedly planning to double its stake in Fuji Heavy Industries, aiming to use the production capacity of the Subaru maker to help it seize the position of world's largest carmaker.

Is this an accurate statement? I thought Toyota already out-produced GM (Toyota 9.51 million vehicles, GM 9.26 million vehicles) in 2007? So why would they buy into Fuji just to build more vehicles so they can out-produce GM? They already can/did. Sounds like there's another motive. Is someone trying to sensationalize the news?

(Certainly, GM outsold Toyota (Toyota sold 9.366 million vehicles, GM sold 9.369 million vehicles), and thus prevented TMC from taking the sales crown.)

 

[88Fiero]

They are, but the press likes to treat them as seperate companies. The press will basically list them as part of GM or seperate to suit their bias' for that article.

Yes we have a very biased press. They are against anything good about america!!!!!!!!!

 

[andy82471]

Is this an accurate statement? I thought Toyota already out-produced GM (Toyota 9.51 million vehicles, GM 9.26 million vehicles) in 2007? So why would they buy into Fuji just to build more vehicles so they can out-produce GM? They already can/did. Sounds like there's another motive. Is someone trying to sensationalize the news?

(Certainly, GM outsold Toyota (Toyota sold 9.366 million vehicles, GM sold 9.369 million vehicles), and thus prevented TMC from taking the sales crown.)

Yes you are correct. Toyota actually out produced GM last year making them the largest automaker in the world. But GM on the cottails of Wuling motors managed to outsell Toyota by about 3000 vehicles. Either way Toyota will outsell and outproduce GM this year.