Ford-Toyota Alliance?
By Michelle Krebs January 22, 2007The Wall Street Journal is reporting today that following a December meeting between Ford CEO Alan Mulally and Toyota Chairman Fujio Cho, the automakers are separately considering the pros and cons of an alliance.
Such an alliance likely would be a joint venture or partnership on powertrain technology, such as hybrid or small engines. An equity deal isn't likely. Toyota has generally avoided large-scale acquisitions and alliances with rival automakers, the paper noted. Plus, the 40% ownership by the Ford family is a complication. Ford, meanwhile, has too many financial troubles to buy a significant stake in Toyota.
Ford may see potential in Toyota's hybrid engines and financial help to build powertrains for the future.
Toyota - and the Japanese governmentâfear political pressure in the U.S. as Detroit swoons. Toyota worries about a possible backlash if it gains sales and market share while Detroit automakers' slide and are forced to close factories and eliminate jobs.
Analysts expect Toyota to outsell Ford in the U.S. on an annual basis as early as this year.
âMichelle Krebs
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