If you look at the history of various industries, they usually have a crowded environment of competitors and then, over time, some drop out and some get bought out by others, and even a certain location or region ends up being the unofficial home for that industry. Just research how many automotive manufacturers existed in America 100 years ago and how Detroit evolved to be the Motor City. And now, as the world becomes more connected and more global, it is possible that the former juggernaut known as General Motors may become a corporation owned by a corporation. Some analysts feel Toyota may be that company.
By merging Toyota and GM, you’d have two of the three largest auto companies in the world as one. Sure, it may sound monopolistic, but the two would only have 30 percent of the American market − much less than GM’s peak 45+ years ago. And in Europe, the penetration would be even less. What about China? A fresh, robust market with many players, so a Toyota/GM conglomerate may not be as huge as it appears.
24/7 Wall St. entertains this idea that the world’s largest car companies of the future would be created by mergers and acquisitions. They point out Toyota’s market cap of $180 billion (compared to GM’s $46 billion) bolsters their case. Combine that with each company’s international manufacturing and dealer operations and you have potential for considerable cost savings. “There is room to create one guy which will be bigger,” according to Fiat Chrysler Automobiles CEO Sergio Marchionne, and knowing the history of business, it’s entirely possible GM may be on the receiving end.
Comments
Toyota can buy Fiat, they’re in far worse shape than GM.
HELL F**KIN NO!!!!!!!
No man it impossible toyota and GM are seprate and never can be connected
this article was bullshit
both of em cannot grow
Why do you say the two could not grow. Hyundai & Kia, while covering the same markets, continue to grow.
I’m against a Toyota acquisition. GM partnering with the Nissan-Renault Alliance makes sense, though.
GM could also strand to acquire smaller players like Mazda or even a medium sized company such as PSA.
I do think we are entering the era of mega mergers. Talk of FCA mating with VW or PSA continues. I also think smaller firms like Honda must partner up in the near future.
Watch Suzuki–very strong in Asia, especially India. It is the auto maker no one should ignore, and a perfect GM match.
GM/Toyota are so different with Hyundai/KIA these two companies partnership is gonna be like Dimler-chrisler
And I’m agree with u that GM’s partnership with a smaller europen company like PSA can be more successful
GM is doing fine and does not need to be owned by anyone. And Toyota have too many on the plate, with other brands they owned, to think about having another brand under them while they themselves have problems as well.
GM is making excellent products right now and I see themselves making more $$$ in the future once the recall mess have subsided.
If that were to happen there would only be used (GM) vehicles in my future!
GM is doing fine???
Not really if you compare GM with the other big two car companies and some other like Hyundai/Kia…
German just pointed out an important fact. GM can’t grow as quickly as Hyundai-Kia outside of China.
Two brand’s are a great way to repurpose platforms (Sloan’s companion brand program).
The number of “rate down” for my comment shows that this blog is full of fanboys who don’t see the reality.
It seems that these guys haven’t heard about the recall, they don’t know that GM has fallen behind VW and Toyota, they don’t know that GM earns much (!!!…) less money than its competitors, is closing plants everywehre around the world, changes its longterm-strategy at least once a year (Cadillac in Europe, Cadillac NY, Chevrolet in Europe, Opel/Holden in Australia…) and is wasting money by pushing its globally non loved Cadillac. Cadillacs are “fine”, yes, but you also need an adapted business plan and the right strategy
Finally GM has understood that there is no room for Chevy in Europe (that is the only “fine” thing GM made within the last years)
When I read “GM is doing fine” I can only laugh and cry simultaneously…sorry guys but this is a lack of sense of reality…
That would be more humiliating than Pearl Harbor.
I wouldn’t compare business to WW 2.
GM is a global company anyway.
Just some traders trying to coax some gains from this rumor.
Firstly, because of security reasons, Washington would not let this happen. And secondly, it would cost anyone at least 80 billion to buy GM because they are very undervalued and have such potential.
If this ever happened I would instantly become a Chrysler man. Of course they might not be around by the time this happens either but by no means could I ever drive a Toyota or a Ford.
The only reason Toyota is bigger than GM is their Japanese market sales, in every other significant market – US / Europe / China – GM outsells them. And as far as products go, as I have said many times before, Toyota are viewed in Europe and especially the UK as a domestic appliance manufacturer just like a washing machine or an oven – in other words about as exciting as reading a phone directory. In any event a merger would be a waste of time because in virtually every market sector GM sells in there is an equivalent Japcrap model from Toyota. Its all hypo anyway because it will never happen.
I’m a GM fan boy, but a realistic fan!
GM does fine with regional brands (Chevy in NA; Buick in China; Opel in Europe) but lacks a solid global growth plan.
I think both Buick and Chevy need to share more product with Opel in an effort to build more of a One GM business plan. The future Holden line up should serve as a global example for Chevy.
Also, GM needs to either ally or purchase an automaker that has mastered modular ‘platforms’. PSA would have been great for this. Mazda has a good handle on next gen technology.
OMG. That better never happen. I’ve been a GM person since was born 1945 .
Truth be told, GM is a very small company on the global scale. GM’s market cap at 47 billion vs Apple at 580. Another financial crisis and it could be all over.
If that was to occur, Ford may be forced to tie up with the VW juggernaut.
BTW, who won WW2 again?????? Lol
What??? GM purchased by Toyota!!! a blasphemy….
I prefer GM buying Toyota then trowing out all those filthy rich Toyota shareholders!
I reme from 1985-2010 Toyota and GM ran a joint venture plant producing both Toyota and GM products. Toyota and GM merging would make quite a powerhouse.
It’d probably mark the return of the Chevrolet Prizm or more likely a station wagon crossover similar to Toyota Venza . I’m sorry but GM has been strugglin with recalls for a while and this recent lawsuit could cause them to dissolve