GM to go Japanese? Possibly.
Now that GM has
offered Kerkorian's advisor, Jerry York, a seat on its
board of directors, speculation has been rampant to what the duo will do next.
How about a merger with a Japanese company?
That's what some investors believe. Kerkorian, who was Chrysler's largest shareholder before the company merged with
DaimlerBenz to become Daimler-Chrysler, had been a strong supporter of the merger. Now many feel such a merger for the
beleaguered General Motors is one of the best ways to save the company. Honda and Toyota have been bandied about as
possible partners.
Shares of GM have dropped even further since York was offered a seat on the board.
Reader Comments (Page 1 of 2)
Steve 12:28AM (12/19/2005)
"Honda and Toyota have been bandied about as possible partners."
Ok, I know that is just speculation, but Honda or Toyota would also have to agree to that arrangement. And if they have any sense they would not do so.
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Source1 12:28AM (12/19/2005)
Ur ****ing kidding right? Noone in their right mind, who is solvent, would take on GM. Ur funny.
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Toyota Lover UK 12:28AM (12/19/2005)
Merger?! Highly unlikely. Any foreign company who wants to buy GM will end up having a millstone around their neck. The Japanese (for example) are already frightened there will be a backlash against them (remember the import quotas of the 80's?) so why would any of them want to invest or buy into the company? That'll endear them to the American public(!) A foreign invader taking over a jewel in the US auto manufacturing industry(!)
I reckon if anybody will buy or invest in them it'll be a European brand. I doubt German as they've already entered the US market. I reckon it'll suit the French down to the ground. They've wanted to get back into the US market for some time and they've got some spare cash for an acquision (ref: Renault buying Jaguar...?) Those are my thoughts anyway....
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GQ 12:28AM (12/19/2005)
I think GM/Honda would probably be the most well balanced, complimentary merger. Imagine what Honda could do or help GM do with GMT-900, Kappa, Corvette/XLR platform, Epsilon II, GM/Isuzu diesel technolgy, etc. GM could get a more competitive minivan, small and midsize expertise, a wealth of DOHC engines, and Honda's interior finishing expertise. Plus with GM's vast manufacturing capacity and dealer network, Honda could meet demand for it's products while getting into new markets.
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sam 12:28AM (12/19/2005)
a merger would be insane for any successful auto company.
IF they really wanted GM, the best thing to do is wait for them to collapse, then just buy off their assets.
Why saddle yourself with their existing problems?
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Steve Wallace 12:28AM (12/19/2005)
Kerkorian was not in favor of the Mercedes/Chrysler merger. In fact, that merger took place after Kerkorian and Lee Iococca (spelling) attempted to buy up all of the stock and take the company private. The president of Chrysler at the time got spooked and ran into the arms of Mercedes. In fact there was even talk of a Chrysler/Nissan merger but Nissan was in too bad of shape at the time. This whole idea of GM going Japanese is foolish. Why would these companies, which are doing well, want to merge or purchase all or part of GM. The most probable outcome will be that several GM divisions are going to go away.
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Geotpf 12:28AM (12/19/2005)
Yeah, why would Honda or Toyota want the mess that is GM? I can see them buying some of thier assets at a bankruptcy auction (maybe some plants, various patents, the rights to Cadillac or the Corvette, things like that), but the whole company? Nah.
Now, I know Honda, being fairly small still, is still mildly worried about a hostile takeover by somebody bigger. (Toyota, of course, is so huge and highly valued that this is an impossibility.) However, given GM's current finacial situation and prospects, I can't see them buying anything right now-looks like they are selling stuff instead.
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Ryan 12:28AM (12/19/2005)
If Toyota & Honda were to scoop up part of GM, what is not to like about that? Aside from all of the "they would be stupid for doing it" Well, Toyota and Honda are probably the complete opposite of stupid and Toyota and Honda both already dilly dalley with GM on products. And there was a friendly sell of some Subaru to Toyota from GM, etc. Remember KIA used to be it's own car company up until 1999 (I could be wrong on the year) but in 1999 Hyundai was still going to war with it's own product and they purchased all of KIA. Now it is working good for them as Kia being the lower/sporty? brand and the "Korea" jokes are now directed more at KIA than Hyundai, which in some weird way helps them.
I hope this takes place, It for sure gives the chance to make GM an "American" car again (ironically) if you catch my drift.
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Bernie 12:28AM (12/19/2005)
No sane company would absorb GM's poisionous, UAW-brainwashed workforce and their terrible work ethic. Nor would they want to absorb the mountain of debt created by overly generous union contracts, or the ill-advised purchases of Fiat and Daihatsu. The only way GM gets taken over is one engineer or marketing person at a time, and that has already started. What's left will be junk by 2009.
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GQ 12:28AM (12/19/2005)
Oh yeah, and giving Honda access to Holden/Theta. Can you imagine a RWD-VTEC?
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Geotpf 12:28AM (12/19/2005)
Um, Bernie, Toyota owns Diahatsu (and they are quite successful, although thier products are not sold in the US, mainly because they mainly make minicars that are considered too small for America).
GM owns Daewoo-and it seems like it's working out well for them, frankly. The well-selling Chevy Aveo is from them, Suzuki (another part-owned GM company) has a bunch of Daewoo-made products that sell well, and a lot of Daewoos are sold as Chevys overseas.
The Fiat deal was a fiasco, though.
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s 12:28AM (12/19/2005)
Honda would never join with GM. Toyota I could see trying to take over GM just kill off the brand period. Toyota is ruthless now. They got mass reserve cash on hand.
Also to the comment of Honda would worry about being overtaken by Toyota in a buyout. Toyota would have abetter chance againist Mitsu not Honda. Worlds would collide in the fight of Honda and Toyota.
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jamie 12:28AM (12/19/2005)
No Way!
Cap'n Kirk will never sell out to the Japanese. He wouldn't even sell out to the Germans when he had a strong position at Chrysler. His main goal now is to run DC into the ground.
I agree with others here that no one in their right mind would want to be saddled with GM's legacy...a horrible millstone that would surely sink any buyer to oblivion. Best wait for the bankruptcy sale and purchase the assets at 10 cents on the dollar. Who needs the UAW and their comotose workers?
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Fred 12:28AM (12/19/2005)
As far as Honda goes, the industry saw how that sort of takeover goes with BMW and Rover. And Honda had enough involvement with Rover/British Leyland (e.g. Rover 200/400) for the lesson to have taken. Even if Honda could afford GM, it wouldn't want it.
There are reasons why saving GM would be meaningful to the Japanese automakers, however. They don't need GM's product, plant or workforce, but they do need Americans to be able to afford their cars. And if GM self-destructs in a freefall chapter 7, or gets into a non-resolvable labor dispute that precipitates one, the knock-on effects could hurt them badly.
The calculation probably depends on how broad the effects of a GM implosion look to be. If all it does is take out people who bought only American products, and takes out one of the three domestic competitors, maybe it doesn't hurt them enough to matter?
The Japanese preference is probably the same as GM's and the UAW's: that Congress (i.e. the US taxpayer) bail the automakers out of some or all of their legacy costs and let GM start afresh. However, as all our cash is presently being spent on blowing up the heathen, it's likely that option isn't on the table until 2008.
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S1500 12:28AM (12/19/2005)
As for British Leyland/Honda investment, wasn't the Triumph Acclaim a rebadged Honda Accord way back in '82?
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Geotpf 12:28AM (12/19/2005)
Fred-GM's bankruptcy would not hurt people who currently buy Japanese cars. In fact, employees and suppliers of GM and thier families are one of GM's major customers (this type of incestual relationship is not healthy, frankly), and almost never buy Japanese cars. If this group of people were all suddenly out of a job, it wouldn't hurt Toyota's or Honda's sales one bit.
Now, Toyota and Honda are worried about a politcal backlash in the United States if GM (and/or Ford) fails. I believe fear of such a backlash is overblown, especially if the Republicans remain in power.
In any case, an outright collapse of either GM or Ford is still unlikely (although admittedly increasing lately). More like a slow and steady decline, like they have both been in for the past twenty five years or so. By the time they do finally collapse, they will be so irrelavent that nobody will care.
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Bernie 12:28AM (12/19/2005)
Well excuuuuse me, Geotpf. I meant Daewoo. Let's not confuse tepid sales of a very ORDINARY car thanks to bottom-tier fleet sales with success. Once the Toyota Yaris and the Nissan Versa arrive next year you'll see what a viable small car looks like.
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Inthebiz 12:28AM (12/19/2005)
Toyota could afford GM lock, stock and barrel. They would love to have GM's transmission plants and GM's hvac systems are world class(Toyota trucks can't compete on the fuel mileage mainly because of inferior truck transmissions and a/c systems. GM has alot more experience with hot weather performance. Heck, trucks in general!). But Toyota would wait until the death of the UAW. Ad it sounds, unfortunately, like congress might overstep their boundaries and throw a rescue line to GM and the UAW. Niether one of them deserve one. So this is an unlikely scenario.
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FM 12:28AM (12/19/2005)
They must be f***ing crazy. And if they do that,it will have the results as the FIATsco.
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Tutulus 12:28AM (12/19/2005)
GM should smarten up. Right now, they have too many products that are all over the place, and none doing too well(bar the Caddy ?, may be. )
GM should go back to their roots -- Provide a simple, reliable and affordable means of transport to the masses. I have a simple plan for GM and each of its major brands :
1. Chevrolet - Low cost, fuel effecient, family oriented vehicles. No high end frills(but highest available standard safety features), just simple, reliable and well designed cars that are effecient.
- Cobalt - Small, fuel effecient Sedan.
- Malibu and Malibu MAXX (wagon) -- Bigger sedan and wagon.
- Impala as a fleet/squad oriented sedan.
- Chevrolet HHR (short base hatchback)
- Chevrolet HHR Extended wheelbase minivan.
- Chevrolet Equinox - Mid-Size SUV (with a hybrid option)
-Chevrolet LArge SUV.
Pontiac -- High output, sporty cars aimed at the youth. They already have some great designs. Pontiac should not be sold with luxury frills, but should be a no frills, but high power/sporty vehicle line up.
- Vibe - Great car-based SUV-style wagon.
- Pursuit - Coupe and Sedan version of the Cobalt, but with a high output/turbo charged engine options. There should be a distinct style that is edgy and gels well with enthusiasts/sports tuners, much like the Civic.
- G6 - I think it is a great looking car and should be available in sedan/coupe/convertible versions.
- GTO - Flagship sedan, lots of power, dressed up to the hilt. GM should give factory modification options.
- Solstice - Great little car as it is, drop a v-8 in this thing GM. Watch it fly !
Saturn - This should be the hybrid brand. Offer ONLY hybrid powertrains on this thing. Strip down the car to the bare necesseties, load it up with safety features and offer a slew of cars -- 1 small sedan/wagon, 1 large sedan/wagon, 1 Van. All hybrids with a light weight ( and dent resistant ?) body.
Saab - European styled luxury automobiles. I'd rather just sell it off to a buyer for few pennies on the dollar. It makes more sense to stick to american brands. Same goes for giving up suzuki shares.
Cadillac -- Caddy is doing great right now. They've got their buck in the right place. Pure American luxury vehicles. Caddy should only worry about aging too fast, keep updating those products and market the V-editions !!
- Introduce a mid-size SUV, an aviator killer.
Buick - Give up those SUV's and minivans. Buick doesn't need those.Go back to building great sedans.
Trucks/pick ups should be marketed exclusively through GMC with a variety of engine options and giddy up on that diesel engine technology. The Hummer -- H1, H2 and H3 should be offered with great diesel engines too. Stop making silly Torrents and SV6's and Terraza's. Keep rebadging to a limit, depending on market trend. Get to know your customers.
Every alternate year, GM should have special edition cars in very limited numbers for each of its brands with unique style and engines that makes them potential collectibles.
This is just a slice of the pie on what GM should be doing. Its all about going back to basics. Keep building good cars, and people will buy them. Get some good mediators on board and rough it out with the Unions. Build the cars in America and keep the domestic auto industry alive. Import cheap parts if you have to, but don't take away our jobs.
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