I think this is exciting. If you think about it Toyota clearly is a path to be the number car maker in the world and hybrids are crucial to their plans. No recommendation here but this is what I found.
Oh What A Feeling!
--Tim Fields
Wednesday, shares of Toyota Motors (TM) shot up to a record after chairman, Fujio Cho met with Ford’s (F) chief executive, Alan Mulally amid complete speculation regarding a potential co-op between the 2 automakers.
Generally, analysts alike are suspecting that this is just speculation and that a broad ranging alliance between the 2 auto powerhouses will never come to fruition. However, while a co-op is unlikely, analysts do believe that there is recognition that more selective tie-ups would be possible.
Shares of TM at close Wednesday at $134.26, while Ford’s stock stuck at $7.58.
When asked about the meeting, TM said that the meeting was a courtesy call and Ford noted that it met regularly with other automakers on “topics of mutual interest.”
After a heck of a year for global mergers and acquisition, the markets were quick to set their sights on the small possibility that Ford may be poised to create a partnership with the world’s most profitable big carmaker.
Global automotive analyst Ron Tadross from Banc of America Securities in NY said, “ Toyota has a very crisp view of why it wants to partner with companies and that doesn't include turning around companies.”
In October of this year, GM killed talks of similar nature with Renault and Nissan, with the possibility of a 3-way deal. Nissan’s chief executive, Carlos Ghosn said the company wanted to add production capacity in the US in the long term, but this particular alliance “was not an urgent issue.” While GM’s chairman and CEO, Rick Wagoner said his company has no plans for a broad-ranging alliance with any other carmakers.
That being said, GM does co-operate on individual projects that include ventures with BMW and DiamlerChrystler to develop “dual-mode” hybrid technology.
AI
