Toyota buying American........
06-21-2005, 02:03 PM
#1
4th Gear Member
Thread Starter
Join Date: Nov 2004
Location: California
Posts: 1,657
Toyota buying American........
This is really bad, I have been reading about GM and the direction they are heading......down the tubes.....very bad for the American people! What do you guys think.
By Rich Smith
Motley Fool
Updated: 12:07 p.m. ET June 9, 2005
Call me a conspiracy theorist. Go ahead, I can take it.
Now that we have that out of the way, here's what I'm thinking: Toyota(NYSE: TM) wants to buy GM(NYSE: GM). Or maybe Ford(NYSE: F). But more likely GM.
You see, when Toyota's Chairman Hiroshi Okuda opined a couple months ago that it might be prudent for Toyota to raise its prices a tad to give Detroit's automakers some breathing room, it could have been mere hubris -- Toyota needling the competition, suggesting that Detroit can only compete on price and not quality.
It could also have been a sign. For here comes Mr. Okuda again, suggesting that not only can't Detroit compete, but both Ford and GM might actually, and I quote, "crumble." This has resulted in a jingoistic backlash by American car buyers against the Japanese who laid Detroit low (never mind that if Ford and GM do indeed "crumble," those same car buyers won't have much choice but to buy imports, seeing as there would be no alternatives).
Now take those two factoids and combine them with GM CEO Rick Wagoner's recent trip to Toyota HQ to not discuss buying some hybrid technology from the masters of the craft. Consider the silliness of the CEO's assertion that he was actually in town to discuss collaborating on fuel-cell research ... a technology that may never become commercially viable. Har.
So GM wants to talk about fuel cells for tomorrow, when it's sadly lacking in hybrid cars today? Har-har.
And Toyota wants to partner this monumental undertaking with a company that its own chairman is publicly suggesting might go "poof!" at any moment? Hardy-har-har.
Still skeptical? You say that neither Ford nor GM would ever "pull a Chrysler" and sell out? Then consider two more facts suggesting just how tempting this scenario might be for all parties concerned: GM and Ford currently sport market caps of below $19 billion. Toyota has more than $19 billion in the bank. And incidentally, GM and Ford are each trading for about their cash on hand (if you ignore the piles of debt behind the curtain). So theoretically, a buyout of either of the Detroit giants would essentially be an even exchange: We give you our company, you assume our debt. Does any of this suggest a buyout scenario to you?
It does to me. But then, I'm a conspiracy theorist.
Fool contributor Rich Smith owns no shares in any company mentioned in this article, though he has, on occasion, claimed to see dead people. The Motley Fool makes no representations, express or implied, about his mental competence.
© 2005 MSNBC.com
URL: http://www.msnbc.msn.com/id/8158795
By Rich Smith
Motley Fool
Updated: 12:07 p.m. ET June 9, 2005
Call me a conspiracy theorist. Go ahead, I can take it.
Now that we have that out of the way, here's what I'm thinking: Toyota(NYSE: TM) wants to buy GM(NYSE: GM). Or maybe Ford(NYSE: F). But more likely GM.
You see, when Toyota's Chairman Hiroshi Okuda opined a couple months ago that it might be prudent for Toyota to raise its prices a tad to give Detroit's automakers some breathing room, it could have been mere hubris -- Toyota needling the competition, suggesting that Detroit can only compete on price and not quality.
It could also have been a sign. For here comes Mr. Okuda again, suggesting that not only can't Detroit compete, but both Ford and GM might actually, and I quote, "crumble." This has resulted in a jingoistic backlash by American car buyers against the Japanese who laid Detroit low (never mind that if Ford and GM do indeed "crumble," those same car buyers won't have much choice but to buy imports, seeing as there would be no alternatives).
Now take those two factoids and combine them with GM CEO Rick Wagoner's recent trip to Toyota HQ to not discuss buying some hybrid technology from the masters of the craft. Consider the silliness of the CEO's assertion that he was actually in town to discuss collaborating on fuel-cell research ... a technology that may never become commercially viable. Har.
So GM wants to talk about fuel cells for tomorrow, when it's sadly lacking in hybrid cars today? Har-har.
And Toyota wants to partner this monumental undertaking with a company that its own chairman is publicly suggesting might go "poof!" at any moment? Hardy-har-har.
Still skeptical? You say that neither Ford nor GM would ever "pull a Chrysler" and sell out? Then consider two more facts suggesting just how tempting this scenario might be for all parties concerned: GM and Ford currently sport market caps of below $19 billion. Toyota has more than $19 billion in the bank. And incidentally, GM and Ford are each trading for about their cash on hand (if you ignore the piles of debt behind the curtain). So theoretically, a buyout of either of the Detroit giants would essentially be an even exchange: We give you our company, you assume our debt. Does any of this suggest a buyout scenario to you?
It does to me. But then, I'm a conspiracy theorist.
Fool contributor Rich Smith owns no shares in any company mentioned in this article, though he has, on occasion, claimed to see dead people. The Motley Fool makes no representations, express or implied, about his mental competence.
© 2005 MSNBC.com
URL: http://www.msnbc.msn.com/id/8158795
06-21-2005, 05:23 PM
#2
Gentleman's Relish
Join Date: Feb 2005
Location: AZ
Posts: 13,090
RE: Toyota buying American........
I have no problem in a foreign entity buying an american company so long as the work stays here. The problem in the instance of Chrysler and Mercedes is that Mercedes kept the 'crappy' part of Chrylser running, cheazy design, quality issues are up for Mercedes as a whole, and Chyrsler is a stepchild (i.e. Crossfire, under powered, uses old technology, and fuggly). Heavy **** cars that are the sizes of boats at or over 4000lbs with huge gas guzzling engines (i.e. Hemi) While Mercedes maintains it's 'Flagship' status and continues on it's way in pushing the technological edge leaving chrysler with scraps and old technology. That is what bothers me.
I don't see Toyota buying GM other than to shut them down. GM is too much of a liability and the auto workers union would fug things up for any kind of merger. I believe in unions but in some cases they want to much and give too little. We want so much yet gripe so loudly when we are asked to put our money where our mouths are in the pursuit of quality. There's no such thing as 'Cheap' quality.
If the buyout means the company survives in a profitable way and betters its image, reputation, AND quality then so be it. Another buyout like Dalmer Chrysler though would be [:'(]
I don't see Toyota buying GM other than to shut them down. GM is too much of a liability and the auto workers union would fug things up for any kind of merger. I believe in unions but in some cases they want to much and give too little. We want so much yet gripe so loudly when we are asked to put our money where our mouths are in the pursuit of quality. There's no such thing as 'Cheap' quality.
If the buyout means the company survives in a profitable way and betters its image, reputation, AND quality then so be it. Another buyout like Dalmer Chrysler though would be [:'(]
06-22-2005, 07:25 PM
#7
2nd Gear Member
Join Date: Apr 2005
Location:
Posts: 211
RE: Toyota buying American........
i hate toyota, reasons why
1.what does toyota make thats fast? supra? well look up the new supra, looks like crap and isnt that great from what ive heard.
2. buddy of mine was sittin at a light and a toyota tacoma hit him, ruined the front end of buddys car
3. corolla, the last car id ever want to own
4. they make cars like the matrix, the echo, i mean come on, i dont mind people who like cars that get good gas milage but these cars are just ugly
1.what does toyota make thats fast? supra? well look up the new supra, looks like crap and isnt that great from what ive heard.
2. buddy of mine was sittin at a light and a toyota tacoma hit him, ruined the front end of buddys car
3. corolla, the last car id ever want to own
4. they make cars like the matrix, the echo, i mean come on, i dont mind people who like cars that get good gas milage but these cars are just ugly
06-22-2005, 08:33 PM
#8
Guest
Posts: n/a
RE: Toyota buying American........
ORIGINAL: COJONES
i hate toyota, reasons why
1.what does toyota make thats fast? supra? well look up the new supra, looks like crap and isnt that great from what ive heard.
2. buddy of mine was sittin at a light and a toyota tacoma hit him, ruined the front end of buddys car
3. corolla, the last car id ever want to own
4. they make cars like the matrix, the echo, i mean come on, i dont mind people who like cars that get good gas milage but these cars are just ugly
i hate toyota, reasons why
1.what does toyota make thats fast? supra? well look up the new supra, looks like crap and isnt that great from what ive heard.
2. buddy of mine was sittin at a light and a toyota tacoma hit him, ruined the front end of buddys car
3. corolla, the last car id ever want to own
4. they make cars like the matrix, the echo, i mean come on, i dont mind people who like cars that get good gas milage but these cars are just ugly
oh and you should probably hate the moron that rearended your friend, not the vehicle that he was SUPPOSED to be in control of. I can't believe you'd hate a car company and a certain vehicle because some numb nuts moron hit your friend.
06-23-2005, 02:12 AM
#9
4th Gear Member
Thread Starter
Join Date: Nov 2004
Location: California
Posts: 1,657
RE: Toyota buying American........
In my opinion I think everything boils down to "Pride", things that makes us American, but since in America we are consumers first then citizens second, I think this is one of the main reasons that our auto industry is not doing very well. If GM wants to maintain alive then they need to make drastic changes in their production of automobiles, change their attitude towards better customer service and they need to prove to the American people that GM can make quality cars at a low price, to be able to satisfy American needs.
In a way this is a wake up call for Ford that if they do not produce quality cars and provide excellent customer service then they are next. As Americans we need to have more sense of pride in our American products at least give them a chance. My opinion.[sm=americanasmiley.gif]
In a way this is a wake up call for Ford that if they do not produce quality cars and provide excellent customer service then they are next. As Americans we need to have more sense of pride in our American products at least give them a chance. My opinion.[sm=americanasmiley.gif]
