Toyota opts for hands-off approach amid possible growing alliances

Toyota is keeping a close eye on the proposed alliance of General Motors, Nissan and Renault.

The three-way tie-up doesn't appear to pose any immediate business threat to Japan's No. 1 car company, which continues to grow steadily in market share and profits while going it alone for the most part. Toyota Motor Corp. has opted for only limited collaboration with rivals, on certain products for certain markets.

But a partnership that will bring General Motors Corp. into the seven-year alliance between Nissan Motor Co. of Japan and Renault SA of France would have symbolic and, perhaps, political significance.

It would be the biggest ever in sheer size, boasting a combined annual production of 15 million vehicles, or about one-fourth of world production.

That has raised speculation that Toyota might ready an alternative offer if the deal doesn't work out. It has Toyota executives talking, if not revealing any plans.

Toyota Executive Vice President Mitsuo Kinoshita, for one, acknowledges the plight of General Motors is certainly "a big issue for America."

Read Article

MercBasher - 8/3/2006 10:29:22 AM

+1 Boost

Pity Toyota doesn't use a month of cashflow and buy a controlling interest in Ford then it could:
a.) overnight become a major player in trucks in the US
b.) eliminate all Ford cars in the US except the Fusion and Mustang
c.) eliminate investment in the majority of Ford's new product development portfolio
d.) sell off some of Ford's plants to Nissan - so that Nissan doesn't need an alliance with GM
e.) Get Bill Ford's mug out of the limelight

kart1 - 8/3/2006 12:55:44 PM

+1 Boost

Also one thing Toyota would inherit all of Ford's problems as well.

So it might get Toyota leverage but it will also mean a huge investment into getting Ford into the right track. It is actually not a good decision right now because Toyota is so successful right now, let them save the money now and possibly buy later when they really need an alliance to thwart off other global car companies.

woood - 8/4/2006 11:41:55 PM

+1 Boost

Toyota is not intentionally gunning for No. 1 spot. It just happpened and they might as well go for it.