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Toyota buy GM

By Douglas A. McIntyre October 13, 2014 6:41 am EDT
As Fiat Chrysler Automobiles (FCA) starts its life as a public company traded on a U.S. market, the engineer of the merger that created the company, CEO Sergio Marchionne, speculated that the world’s largest car companies of the future would be created by mergers and acquisitions. “There is room to create one guy which will be bigger,” he told Bloomberg, referring to market leader Toyota Motor Corp. (NYSE: TM). Too much capacity still plagues the industry, in a world in which that problem contributed to the bankruptcies of General Motors Co. (NYSE: GM) and Chrysler.

There are several business combinations that could create an undisputed market leader. The biggest of these would be a merger of Toyota and GM, two of the three largest car companies in the world. Such a deal would face scrutiny from regulators. But the market share of the two manufacturers would be less than 30% in America, and much less than that in Europe. China is as competitive a market as either, so a merger would not create an unusually large company there.

Toyota’s chance to buy GM is bolstered by its market cap of $180 billion, compared to GM’s $46 billion. Wall Street has gotten weary of GM’s disaster in Europe, its stagnant market share in the United States and endless recalls. GM can claim it has a pole position in China, but that is about all it can claim as an unqualified success. And GM has made itself easier to take over as its stock trades just above a 52-week low.

The cost savings of a Toyota buyout of GM would be considerable. Each has large dealerships around the world and tremendous manufacturing operations. The savings of a transaction would stretch into the billions of dollars.

In a world in which $50 billion deals have become entirely possible because of the availability of capital and stock prices that have fueled market caps that some companies have never reached before, larger and larger deals are possible.

Marchionne may be correct. A deal to create a clear number one car manufacturer in the world is entirely possible.
 

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Would you buy a $50 Billion headache?

Just because Toyota can theoretically buy GM, doesn't mean they will. If any of the big companies merge with or buy out another, I can see a day when GM merges with or buys out Fiat Chrysler Auto... 10 years down the line... Forced upon by an even tougher European market, caused by geopolitical discord.
 

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Why do people even do this? Her and cmicasa, that other barbarian.
What do you think you would do if you were banned? They did what almost everybody does............ creates another username/profile.

Cmicasa and Andretti's similarities started & ended with multi-user names, I never minded Andretti's post so much, was she critical of GM? Yes, but if that is an eliminating factor, this place would clear-out and be pretty boring. (hint; we'd both be gone :yup:)

The main beef with is Andretti is she'd post controversial/negative articles about GM, she didn't write them, she merely found them and posted them.

6 years ago GM/Chrysler merger was a discussion, a REAL discussion, it didn't happen, Fiat worked its way to a better deal, but who would have thought 10 years ago Chrysler/Fiat wasn't crazy or 15 years ago Nissan/Renault wasn't equally outlandish?


OK that's all, carry-on,
Ed
 

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The original author is a very well known misinformation specialist who of late, has been big on hot air for Toyota and cold water for GM.

Oh, and with the occasional double pump for Ford.

Part of that includes a deliberate and massive inability with the truth never mind critical omission and bending.

As an example, GM + Toyota's market share in the USA comes to just over 32.2 % 2014 YTD; not 'under 30'.

WAG would be this is a more sophisticated intent than you might think; because many would assume Toyota around 15 - 16 % and that would mean GM is the rest ie 15 - 14 % or lower ( think Ford future territory ) rather than the approximately 17.8 % that GM has as of end of last month.

That would also possibly play nice for someone following Ford.


And concerned perhaps with a Ford marketshare now all the way down to approximately 15.1 % Sept2014YTD, with sizable prospect of being even lower in a less than attractive way by years' end.
 

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What do you think you would do if you were banned? They did what almost everybody does............ creates another username/profile.

Cmicasa and Andretti's similarities started & ended with multi-user names, I never minded Andretti's post so much, was she critical of GM? Yes, but if that is an eliminating factor, this place would clear-out and be pretty boring. (hint; we'd both be gone :yup:)

The main beef with is Andretti is she'd post controversial/negative articles about GM, she didn't write them, she merely found them and posted them.

6 years ago GM/Chrysler merger was a discussion, a REAL discussion, it didn't happen, Fiat worked its way to a better deal, but who would have thought 10 years ago Chrysler/Fiat wasn't crazy or 15 years ago Nissan/Renault wasn't equally outlandish?


OK that's all, carry-on,
Ed
You'd be gone too? Awww shucks that'd be too bad...


On a related note, good riddance Andretti, for now.
 

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Why do people even do this? Her and cmicasa, that other barbarian.
What do you think you would do if you were banned? They did what almost everybody does............ creates another username/profile.
For example..............

Barbarian? Hardly.

I come here for the news like so many others... yet very often (despite my wrongful banning for using the word gay way back in '09) enjoyed as PearlsRider, FoxMulder's Ghost, LovelyMoon, The Kingsmen, and de Marquis, putting things into perspective utilizing logic instead of moronic banter fashioned as arrogant egotistical drivel. U of all people know what I speak Sfbrat. ;)

I have never pretended to be anything other than what I am. Well except the LovelyMoon time.. and the cousin BS. I I never changed my style of posting, my allegiances, or my non-tolerance of Anti-GM (the irony) BS perpetrated by various members on this forum such as this Andretti, Mgescuro, or Ed753. Everyone who ever posted with me knu it was me... same cars.. same house.. same job.. same same same. If I wanna be here I will be here.

Funny how so many pro GM posters have vanished, yet everyday an old troll from 2003 pops in here with a fake GM issue that only lasts for 4 posts or so and then they are gone again.

Now Ban me again.

/\ /\ /\ Moderators? /\ /\ /\
 
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6 years ago GM/Chrysler merger was a discussion, a REAL discussion, it didn't happen, Fiat worked its way to a better deal, but who would have thought 10 years ago Chrysler/Fiat wasn't crazy or 15 years ago Nissan/Renault wasn't equally outlandish?

OK that's all, carry-on,
Ed
We could also remember what "Captain Kirk" Kerkorian wanted to do with its brief stint at GM by approaching Renault-Nissan...
Let's did some old threads. ;)
http://www.gminsidenews.com/forums/...enault-nissan-alliance-urged-kerkorian-33528/
 

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What do you think you would do if you were banned? They did what almost everybody does............ creates another username/profile.
I belong to plenty of forums and have never been banned from any of them. It's easy to be a decent citizen in any given forum and not get banned. What's the point of joining a forum just to be an a-hole? Maybe some folks get off on that type of thing, but I have better things to do with my life. I belong to forums like this to discuss cars and learn about upcoming product, not to be an antagonistic prick or troll whose sole purpose is to get a rise out of others.


Cmicasa and Andretti's similarities started & ended with multi-user names, I never minded Andretti's post so much, was she critical of GM? Yes, but if that is an eliminating factor, this place would clear-out and be pretty boring. (hint; we'd both be gone :yup:)

The main beef with is Andretti is she'd post controversial/negative articles about GM, she didn't write them, she merely found them and posted them.

6 years ago GM/Chrysler merger was a discussion, a REAL discussion, it didn't happen, Fiat worked its way to a better deal, but who would have thought 10 years ago Chrysler/Fiat wasn't crazy or 15 years ago Nissan/Renault wasn't equally outlandish?


OK that's all, carry-on,
Ed
C'mon Ed, that's nonsense. Andretti went way beyond posting negative articles. Her arguments were tenuous at best, she flat out made stuff up, she would never reply when someone countered her nonsense, and she liked to plant seeds of negativity whenever possible. She fit the definition of a troll. And yes, she would only post negative opinions regarding GM, and then run with the opinion pieces as if they were fact. You'd have to have blinders on to not see through that.
 
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