Analysis: Toyota Takeover Could Save GM

In his prepared remarks before the Senate Banking Committee on Thursday, General Motors CEO Rick Wagoner Jr. spoke of the urgent need for federal assistance for the Big Three U.S. automakers.

Wagoner insisted that such funding is not only necessary for GM, but vital to the U.S. economy as well. He specifically requested that the federal government make available $12 billion in short-term loans, along with a $6 billion line of credit in the event the current severe market downturn persists, with an immediate loan of $4 billion and a second draw of up to $4 billion in January.

Read the whole story here.

Comments

[Seeker14]

There is no gentle or politically correct way to say this: Yet another overly simplistic assessment of an extraordinarily complex state of affairs warranting dismissal from thoughtful consideration.

Take the time to consider the below analysis, and in the words of Pol Pot, "reeducate" your pattern of thought...please


http://www.slideshare.net/GHHLLC/automotive-industry-analysis-2008-martha-hindes-e-motion-reportscom3-presentation

[jcollell]

It really is sad that the American Automakers just don't get it. We had the energy crisis in the 70's which catapulted the Japanese automakers in the US market because they made good, fuel efficient cars. Why don't these numbskulls get it? Build good, cheap, fuel-efficient cars.

http://www.youspar.com/

[rextrek]

well I purchased a 2008 Toyota Yaris Hatchback in Aug....at 16k total (tax/tags etc) and get 38-40MPG - (my 1st ever brand new car) I'm saving over 75$ a month on gas.....I researched all cars prior to buying it....got a loan from my Credit union for 10k,and my partner gave me the other 6k..so my monthly payment is 182$ (includes the 4$ a month Ins. for disablility/unemployment) ...I tried to buy a American car Ford Focus? But the savings wasn't there.....it would have been another 3k or so....and I only make 31k a yr.

[jerrypenguin]

Most likely, the US auto industry will follow that of many other aspects of US industry. That is, ship the machinery of production to other parts of the globe.

[teacake]

It looks like the root of all problems and crises we are facing today is OIL and the ev!l people who are in control of it.

[teacake]

It would be detrimental to Toyota to even smell like GM. It would be suicidal for Toyota to ruin its reputation for associating itself with GM. But then again, the NUMMI plant in Fremont is a joint venture of GM and Toyota. But apparently GM is a slow learner. Either that or Toyota has been too tight on its trade secrets.

[teacake]

The only sensible solution for GM is to put itself on e-bay with the starting bid of $1.00. And that's really how much GM is worth at the moment. Perhaps the metals on their useless SUVs would worth a little more.

[vedder110]

It depends if you are buying their debt obligations or not. If you are, then it's almost certainly worth less than $1.

[snowbabies]

We told you last week to put them on the shopping block. But everyone said we were cr-azy!!

http://theliepolItic.com

[Plank]

Was this analysis sponsored by the Japanese Chamber of commerce? This article is an insult to every American, especially the day of the anniversary of Pearl Harbor. Have you forgotten who built equipment during the world wars?

[teacake]

Get over it. It's arrogance and stupidity that got the Japanese the two nuclear bombs dropped on their heads. Now, its the same arrogance and stupidity that got the American auto industry to get shame and disgrace pour on theirs.

[Hansharriet]

Listen, Plank, GM and the US automakers didn't do us any favors. They got paid fair and square by the US Government which means the taxpayer, you and me. They only did it because of the billions of dollars in profits they made, so don't give me any baloney of having forgotten who built the equipment. The American workers did and they fought and also died and suffered in the wars.
Have you forgotten the shoddy equipment some of these companies produced and still produce for our soldiers in Iraq and Afghanistan? And what about the unbelievable big salaries their executives are paid and how about the overcharging and cheating by these same companies? Wake up and smell the coffee.

[sociocanuck]

That's almost as irrelevant a coincidental (and note even precisely temporally aligned) occurrence as the whole 'Obama lived in the same place as Ayers therefore he pals around with terrorists' Hannity-ism.

Sorry, not buying it.

[Arthur954]

It is not a good idea for Toyota to buy GM. The US has good workmen, designers and engineers, but BAD EXECUTIVES. Bring in a new generation of top executives that have FLAIR and GOOD TASTE. If neccesary, bring a few talented people from Europe to run the show.

When the American people set their mind to do something beautiful - they do it better even that the europeans - look up in Google the moving story of the Penske 1970 - 71 512 Le Mans type Ferrari racing car : they redid it much better than the factory original ! the problem is when you have to deal with those square headed executives with no taste

And car companies CAN be turned around : Carlos Ghosn did it with Nissan, and now Sergio Marchionne is doing it at FIAT, with new vintage logos, exciting cars ... etc

IT CAN BE DONE, and it is fair for the government to give all these people in Detroit a chance, and not throw out all our worker brothers and sisters into the cold streets. It´s not their fault.

[Bluedrgn]

The articale asserts:

"Toyota obviously knows how to run an international auto company while GM plainly doesn"t. Putting Toyota in charge of GM could remedy the current desperate situation for the American automaker and form a company that is stronger than either on its own by pooling their assets and expertise."

Sorry but that is making a poor assumption based of very limited data. GM was a very profitble company only a few short years ago. They are in a hole now because they banked their ecominic stratagy on building trucks and SUV's which suddendly nobody wants due to gas prices... and the more recent crashing of the market just made things worse. So in essence GM and the other US automakers are up s__ creek for giving America exacly what we wanted. The American public, and our goverment are as at fault as GM's managment for this.

[Oldbuck]

This is the biggest crock I have ever heard letting Toyota take over GMC what they will do is manufacture the parts in Japan and assemble the parts here and take all the damn jobs to Japan. I thought that was what we were trying to do is save or heavy industry. This sound like a Republican Ideal that why we are in the shape we are in. This is the philosophy the has sunk out boat. Why can't people under stand we need a few jobs so someone can have a few dollars to purchase something.

[Viper]

When was the last time, the number one and number 2 makers of anything were allowed to merge?

Regards

[MarsAmbassador]

America is dead. Long live America!

[Erdgeist]

I just found this in the Mercury News:

"General Motors reported that sales plummeted 41 percent in November compared to the same month a year ago, while Ford reported a drop of 30 percent. Even Toyota, which has steadily gained share in the U.S. market in recent years, said November sales were down 34 percent."

So are we to conclude that Toyota, like GM, is not selling cars because nobody wants them in so far as the company is poorly managed and shortsighted?

The real problem is that people can't afford to buy automobiles right now. They are scared of losing their jobs so they are squirreling away their money -- not spending it on big items. It has nothing to do with whether or not GM or Ford are making fuel efficient cars.

[ErnestineBass]

OMG!!! That @$$hat Phil Gramm might have been onto something.

FEAR IS a powerful psychological motivator.

heh heh 8-]

[vedder110]

No, we can conclude that GM has far more unmanageable debt than Ford and Toyota, and Ford and Toyota have had a 10% smaller loss in car sales during a period of universal decreased demand. This is a death sentence for a company of GM's size, and should be.