California Autos Examiner

Saturday, July 15, 2006

GM & Toyota?




BusinessWeek magazine has an article discussing the possibility of a GM/Toyota tie-up. The author speculates that Toyota would have a keen interest in not allowing GM to shack up with another manufacturer. Alternatively, Toyota also has no interest in GM faltering, since it is fearful of the social and political backlash that may occur. Analysts do not think that that any offer from Toyota would include a purchase of GM stock, but rather a collaboration on development and manufacturing fronts. Since GM and Toyota have already collaborated on such projects as NUMMI (note that in the article, they spell Fremont, CA as Freemont), Toyota could offer to expand such partnerships. It will be interesting to see how things develop over the next few months!

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