Hope I didn't cause anybody to crap their pants, but was just wondering what people would think if this would happen.

Could Toyota afford to do it? I think so.

Would it be good for the 'World' Automobile market? I dunno.

Let's assume a 50/50 split.

It would definitely be a huge help to the image of GM at least here in the US. They would have the financial means to take care of some problems. A total board shuffle/UAW renegotiations.

Instant Hybrid Technology. (Hybrid Cobalt/Aveo - etc...).

Just wondering what this would do to the automotive world and what people would think?

Sometimes joining forces with your worst enemy is the /smartest/ decision.

 

First of all I'm pretty sure Toyota could not afford to buy out GM - Toyota is by far more profitable, but I'm also pretty sure that GM is worth quite a considerable amount more in terms of net assets than Toyota is, much less than Toyota has in the bank in cash right now.

In terms of a merger, yeah it'd be interesting to see and I think could potentially be a saving grace for GM but also slow down / weigh down Toyota by quite a bit. In other words that would never happen either.

It could also potentially cause both of their demise as in this market a company can EASILY be too large and too big for its own good. Look at how DC is working. They merged, but they kept their companies largely seperate with the exception of sharing their parts bins and engineers here and there. They're taking it one step at a time, which is smart.

 

Too much Product over lap = bad Idea

 

Toyota would not be wise to do it.

What would they gain?
- Market Share? They are taking it already.
- Products? They have a good product mix already.
- Profitability? They already have it...GM does not.
- MFG? Why in the world would they want to get involved in the big mess at GM.
- Distribution? They already have it.

I see EVERY reason NOT to purchase GM. Even if Toyota had the cash they would not do it.

 

Please

 

I definitely dont see a merge or a buyout to be beneficial for Toyota. But then again, all the big cell phone giants merged together so who knows what the future holds. It wouldn't surprise me to see a couple big automakers join forces one day.

 

"After all, it's hard to fathom how GM can remain investment grade with a $470 billion balance sheet that shows only $26 billion of equity (and a market capitalization only half that dismal figure).

At those levels Toyota (with $130 billion in market cap) could well acquire GM, much as Daimler bought Chrysler"

 

.....oh wait your serious. Here, let me laugh harder

I don't see this ever happening. Didn't some media source suggest this idea about a year or so ago?

 

based on the stock value, it isn't out of the question.

That's a very scary thought.............

 

Not so sure Toyota would want GM's legacy costs.....but then GM doesn't want them either.....especially with Delphi going Ch11.....

 

Yes, it certainly is.

 

And I've had GM execs accuse me of being non-loyal for voicing an opinion.

You and I both know this will not happen. At least not anytime within the next three years. The products coming out are just too damn promising.

Also, I'll buy as much as Stock as I can along with Sprint and let Kerkorian make me money since its obvious the board as it is right now wont.

 

Toyota wouldn't buy GM any time soon. It doesn't help their financial position. It doesn't help their political position (What's good for GM is good for Japan?) and it doesn't help their strategic position.

Toyota would be much better served to wait to see if GM or Ford goes belly up, then swoop in and buy the assets for nothing...much like GM did with Daewoo.

 

The new 5th gen will be called the Camrymaro! V-6, front-drive, but at least the fit and finish will be top-rate.