Saturday, July 15, 2006

Toyota Looking at Proposal to Link With GM

That's the word this afternoon from Business Week, via Automotive News. Details are sketchy but predictable. When word spread through the world automotive industry that a Renault-Nissan-GM alliance might be in the works on some basis, wheels started turning in a bunch of executives' heads, including those at mighty Toyota.

An unnamed Toyota executive is quoted saying "Toyota has no interest in seeing an alliance like this [involving Renault, Nissan and GM] take place."

Makes sense because Toyota has its hands full with existing competition, so why sit idly by while the wily Carlos Ghosyn, who has already recusitated Nissan and created lots of headaches for Toyota in the process, gets a deal with GM?

Prediction: This is the opening round in a very high stakes bidding war that may or may not result in the salvation of the once-mighty GM. And it won't be long before similar bidding breaks out for a deal with Ford.

You heard it here first, friends and neighbors.