GM expected to ask Toyota for help-Kyodo report

[Blue_Tires]

Source: Reuters

DETROIT, Oct 29 (Reuters) - Struggling U.S. automaker General Motors Corp is expected to ask for Japanese rival Toyota Motor Corp's help in turning around its business, Kyodo News reported on Wednesday, citing sources familiar with the plan.

GM Chairman and Chief Executive Rick Wagoner is considering visiting Japan soon and meeting with Toyota's leadership to discuss the plan, Kyodo said, citing sources.

A GM spokesman was not immediately available for comment.

The Kyodo news report said Toyota was expected to consider quick fixes for the cash-strapped GM, including buying up its assets and helping it secure sufficient business funds.

The executives of the world's two biggest automakers may also discuss an expanded business partnership, including Toyota making fuel-efficient compact cars for GM and providing hybrid-car technologies to the U.S. carmaker, Kyodo said, citing sources.



Read more: http://www.reuters.com/article/mergersNews/idUST7920920...

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these are the end times....

[susanna]

1. Self-delete

My post mentioned that Ford should have done this first. Looks like they tried and failed last year (I googled after the fact once I had a memory twinge).

[amandabeech]

3. Ford's long-time Japanese partner is Mazda. I doubt that they'd be looking at Toyota.

Mazda has helped them with its small cars. Ford has made some noises about selling its stock in Mazda (20-30%) to raise cash but I don't know the status of the proposal. I think that Ford should stick with its Mazda relationship.

Ford developed its hybrid system on its own so that it would understand the technology better. Its first offering was the Hybrid Escape in 2005.

Ford's technology is similar to Toyota's and Ford had to license some Toyota patents before it could offer the Escape. In exchange, it offered licenses on some of its diesel patents that Toyota wanted for further development of diesel engines.

GM and Toyota have been making cars at the joint-venture plant in California--the name escapes me at the moment. That plant has built small trucks and Corollas, but now makes the Matrix/Vibe twins.

If the GM relationship with Toyota deepens, it would not surprise me, and I think that it might be good for GM. Goodness knows that they need some help now.

The leveraged buy-out "private equity" firm Cerebus that controls Chrysler doesn't know a d****d thing about the auto industry and only wants to strip as much meat off the carcass as it can. It's the same as the LBO a******s of the '80s who ended up killing by anorexia some decent companies that only needed to slim down a bit.

These LBO/private equity shops must be stopped. They're not interested in running a company; they're just a bunch of vultures nearly consumed themselves with greed.

[susanna]

4. I am aware of Ford's Mazda connection.

I worked for Ford for sixteen years.

However, before Mazda, Toyota and Ford once shared a lot of intelligence. What I was getting at is that Ford, if they were smart, would have attempted to do this first. That's all.

[lithiumbomb]

6. Ford has been working with mazda since 1972

The original Ford Courier pickup was sourced from Mazda in 1972, and then became a joint project, until the Ford Ranger appeared in 1983. Ford owned 27% of Mazda by 1979 and upped to a controlling stake of 34% by 1998. They've been sharing other platforms since the 80s. Except for Ford licensing hybrid technology from Toyota in recent years I'm pretty sure they've done little work together. GM has had a long relationship with Toyota since the mid 80s with the NUMMI manufacturing plant in California.

Considering their relationship with Mazda produces a number of platforms for every size class used across all of Ford's brands, I don't see what Toyota could possibly offer.

I don't see what they could offer GM either, unless GM wants to share Chrysler's production capacity with them in exchange for some operating cash.

[susanna]

7. That does not discount what I said.

Ford has always been relatively smart, compared to the other domestics. They benchmarked - and allowed themselves to be benchmarked - by multiple Asian automakers.

So the idea that they could ONLY be in partnership with Mazda does not ring true to me. Ford, early on, assisted themselves by understanding all the Asian automakers. Yes, they bought into Mazda. But that does NOT preclude Ford's benchmarking of Toyota, or Toyota's benchmarking of Ford. Fair enough?

[amandabeech]

8. Ford developed its own hybrid technology without help from Toyota.

However, the Ford technology was close enough to Toyota that it had to license some patents before it could get its technology in the marketplace. That's just the way the law works.

Don't think that Ford just bought Toyota's.

[dixiegrrrrl]

2. So ironic.

[Snazzy]

5. bailout from Toyota now too! Hubris

ask for $10B from Paulson & co., ignore most consumers, the environment and most shareholders. Coming to a headline near you soon "GM too big to be allowed to fail."

Wagoner marshalled his lobbying forces for the bank bailout, all the while planning on asking for piece of the action at the earliest. And since they finance cars, he figures they are already eligible under TARP or whatever it's called for taxpayer handout.

I say fine, they can have our money but we need attractive terms. How about we approach it like a handgun buyout? Every friggin' SUV they take off the road we fund.

[KamaAina]

9. Baseball, sushi, mochi pie and Chevrolet?