Among auto enthusiasts, one way to pass the time is imagining what would happen if Toyota purchased General Motors. The mind of Bloomberg columnist Doron Levin must wander a lot as he imagines a scenario in which Honda also acquires Ford. In the mind's eye of his postapocalyptic world (or is it?),  ‘ToyotaGM’ would instantly become the #1 automaker in the world. Hope would return to domestic-dependent areas like Flint, Michigan. Productivity would increase and both Toyota and Honda would be enshrined in American hearts for saving a pair of American institutions.

And then Levin douses himself with the cold facts of reality.

He points out what is common knowledge to many auto and financial insiders: GM and Ford are ‘poison pills’ with the following effects:
  • Healthcare and retirement obligations
  • One-sided contracts with the domestic unions
  • Management culture.
More details can be found at the link. Is Levin on the mark here or is the possibility of Japanese giants saving the day at the 11th hour a real possibility?

[Source: Bloomberg]

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