GM and Toyota said to hold talks

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GM and Toyota said to hold talks
http://news.bbc.co.uk/1/hi/business/4398718.stm

GM and Toyota said to hold talks
By Jonathan Head
BBC News Tokyo correspondent

The General needs urgent attention
The chiefs of the world's two largest car makers, Toyota and General Motors (GM), are reported to be meeting in Tokyo to discuss co-operation efforts.

Neither company will confirm the meeting, but GM chairman Rick Wagoner, has been in Japan since Monday.

Toyota is the world's most profitable car maker, while GM is losing billions of dollars.

Toyota might help GM in order to avoid a public backlash against Japanese cars in the crucial US market.

Co-operate rather than compete

Toyota's astonishing success in selling cars around the world, and making money out of them, is beginning to worry its bosses.

Toyota makes most of its profits selling cars in the US, and it is concerned that it could provoke anti-Japanese feeling there.

Some Congressmen have complained that the Japanese yen is being kept artificially weak against the dollar.

So Toyota is looking for ways to co-operate with rather than compete against GM.

Both GM and its rival Ford, the two biggest US manufacturers, are in dire financial straits, burdened by welfare and pension commitments, that there are real fears over their survival.

Fresh figures show that while US car sales fell 14% in October, Toyota and Honda gained market share while GM and Ford slipped back.

Helping each other

In May, Toyota and GM discussed developing hydrogen technology together as an alternative fuel.

Toyota is already the leading manufacturer of so-called hybrid cars, using a combination of electric and petrol power.

Toyota also stepped in last month to buy shares in a smaller Japanese manufacturer from GM, a move which could help its American rival's bottom line.

The latest meeting between the heads of the two companies is shrouded in secrecy, though according to the Kyodo News agency, Toyota President Katsuaki Watanabe and Mr Wagoner are discussing co-operation with regards to technological research and plans for jointly operated factories.

It is becoming increasingly clear that whereas on paper, Toyota and General Motors seem locked in a titanic battle to determine who will dominate the global car market, in practice they are actually helping each other out.

The idea that they no longer want to compete in all areas is no longer a secret.

[Ep3racer954]

man thats not good news for american car companies but all well they dont have my vote, JAPANESE cars all the way!! although a nice new mustang cobra, or GTO would be pretty nice at the track.

[Silver8th]

Yeah, shelby mustang cobra, GT 40, dodge viper, corvette, are about the only american cars I would be intrested in buying at this point, if I could even ever afford them, and if their even american made cars?

[kadenx]

I think its great news for toyota. with a possible "co-op" with GM, toyota would get some serious tax breaks in the US and they would sell more components to GM. It would be bad for the other makers though.

[davydany]

Yeah Toyota! Sorry guys, i sold my Civic and bought a Corolla. I'll get myself an Si or S2K in a few years and hail Honda!

[jameshot]

the sooner GM goes out of bizz the better off the american public will be WHEN IT COMES TO RELIABILITY AND FUEL ECONOMY. GM has always had the opinion that whats good for them is good for you (NOT).THE ONLY THING I'AM WAITING FOR is when honda /toyota come out with a full size work van with great mileage and power so i can stop buying ford and gm work vans.thats when it will truly be over for ford and gm.

[jameshot]

Originally Posted by Silver8th

Yeah, shelby mustang cobra, GT 40, dodge viper, corvette, are about the only american cars I would be intrested in buying at this point, if I could even ever afford them, and if their even american made cars?

they all overpriced crap anyway!

[twistedframe]

Originally Posted by jameshot

the sooner GM goes out of bizz the better off the american public will be WHEN IT COMES TO RELIABILITY AND FUEL ECONOMY. GM has always had the opinion that whats good for them is good for you (NOT).THE ONLY THING I'AM WAITING FOR is when honda /toyota come out with a full size work van with great mileage and power so i can stop buying ford and gm work vans.thats when it will truly be over for ford and gm.

totally agree. It would be nice if honda came out with a mid size pick up too. Something to compete with all the other midsize trucks.

[jameshot]

Originally Posted by twistedframe

totally agree. It would be nice if honda came out with a mid size pick up too. Something to compete with all the other midsize trucks.

yes that would be nice they do need another truck the ridgeline is ok but its not designed to where it can be set up as a work truck like the tundra ,ladder racks, tool boxes, service bodys ect :ect: ....one truck that truly was a small work horse you could not kill was the mitsubishi mighty max of course the tariffs went so high on it they stopped importing them (gm probably was behind that also) they cry to the government for new laws when they fall behind. so for now american choices for work trucks/vans are primarily ford gm and chrysler with ford leading and everyone of um drinks gas.

[wing_gundam]

I guess Toyota will make Jap cars, and GM will sell them as their own! (Vibe, or aveo - wasnt that a Daewoo?)

[Janizary]

While not 'pro-american' for cars, the statement that GM going out of business would somehow be good for American's is, perhaps, one of the single most ignorant replies I have seen in quite some time. If you cannot fathom what I mean by this reply, perhaps a lobotomy would serve you well. And not passing along your genes would be a blessing.

[jameshot]

Originally Posted by Janizary

While not 'pro-american' for cars, the statement that GM going out of business would somehow be good for American's is, perhaps, one of the single most ignorant replies I have seen in quite some time. If you cannot fathom what I mean by this reply, perhaps a lobotomy would serve you well. And not passing along your genes would be a blessing.

he must be a bottom.....lol ........too bad his mom didn't eat her young....

[Celcius]

Originally Posted by Janizary

While not 'pro-american' for cars, the statement that GM going out of business would somehow be good for American's is, perhaps, one of the single most ignorant replies I have seen in quite some time. If you cannot fathom what I mean by this reply, perhaps a lobotomy would serve you well. And not passing along your genes would be a blessing.

Well said! +1

[06CivEXJon]

What Ford needs to do is bring their European division vehicles over here,and sell them. The Mondeo,Falcon,C-Maxx,C1 Euro Focus. They also need to bring the Taurus back and fully redesign it. Hell even GM is doing that with Saturn,bringing their Opel/Holden/Vauxhaull line ups and selling them here. Why cant Ford do the same? which they should. First off Ford brings the Euro vehicles over here,sells them as Fords and Mercurys. Ford also needs to do something with Lincoln,they need more cars in their line up and SUV's to compete against Caddilac. Ford needs to desperately revive SVT and make a 300+ AWD Fusion,Five hundred and 4WD Euro Focus RS,and a RWD Taurus SVT. I can careless about Dodge though cause Dodge sucks.