Ford CEO meets with Toyota on potential partnership
12-26-06, 12:34 PM
#1
Ford CEO meets with Toyota on potential partnership
Ford CEO meets with Toyota on potential partnership
Posted Dec 26th 2006 2:42PM by John Neff
Filed under: Etc., Ford, Toyota
The old saying goes that if you can't beat 'em, join 'em. Ford has long since resigned itself to the fact that the #2 automaker in the U.S. will soon not be wearing a Blue Oval for a badge. Instead, Toyota is expected to occupy the numero dos position as soon as January, with Ford's market share continuing its slide down into the low teens and Toyota's moving every upward.
Thus, it might not come as a surprise to learn that Ford CEO Alan Mulally and his right hand man Mark Fields made a trip to Japan last Wednesday to sit down and talk with Toyota execs. The report comes from inside a Japanese trade journal called Nikkei Net Insider and claims, "the meeting is considered as a first step in the exploration of a potential partnership."
[Source: Nikkie Net Insider - sub. required via Jalopnik]
The word "partnership" (also "alliance," "merger," "acquisition," etc.) have all become buzzwords in the auto industry this year thanks to the three-month circus show that revolved around the possibility of General Motors forming a partnership with Nissan/Renault. That hook up ultimately didn't happen for the apparent reason that General Motors would get the short end of the stick, and news of a potential partnership between Ford and Toyota has us wondering what each automaker would bring to the table. Ford has a bunch of excess production capacity based in the U.S., which Toyota will likely need more of it hopes to topple our other domestic automaker as King of the Hill. For its part, Toyota has lots of technology to offer, as well as experience on building a rock solid reputation for fine automobiles (although one could easily argue that Ford is the one building the better vehicles as of late).
Regardless of what would be put on the table, a partnership between these two companies would likely not be a "merger of equals" like the deal that allowed Daimler-Benz to swallow Chrysler in 1998, but rather a swapping of and intertwining of resources that allow the two enjoy larger economies of scale than they could on their own.
Posted Dec 26th 2006 2:42PM by John Neff
Filed under: Etc., Ford, Toyota
The old saying goes that if you can't beat 'em, join 'em. Ford has long since resigned itself to the fact that the #2 automaker in the U.S. will soon not be wearing a Blue Oval for a badge. Instead, Toyota is expected to occupy the numero dos position as soon as January, with Ford's market share continuing its slide down into the low teens and Toyota's moving every upward.
Thus, it might not come as a surprise to learn that Ford CEO Alan Mulally and his right hand man Mark Fields made a trip to Japan last Wednesday to sit down and talk with Toyota execs. The report comes from inside a Japanese trade journal called Nikkei Net Insider and claims, "the meeting is considered as a first step in the exploration of a potential partnership."
[Source: Nikkie Net Insider - sub. required via Jalopnik]
The word "partnership" (also "alliance," "merger," "acquisition," etc.) have all become buzzwords in the auto industry this year thanks to the three-month circus show that revolved around the possibility of General Motors forming a partnership with Nissan/Renault. That hook up ultimately didn't happen for the apparent reason that General Motors would get the short end of the stick, and news of a potential partnership between Ford and Toyota has us wondering what each automaker would bring to the table. Ford has a bunch of excess production capacity based in the U.S., which Toyota will likely need more of it hopes to topple our other domestic automaker as King of the Hill. For its part, Toyota has lots of technology to offer, as well as experience on building a rock solid reputation for fine automobiles (although one could easily argue that Ford is the one building the better vehicles as of late).
Regardless of what would be put on the table, a partnership between these two companies would likely not be a "merger of equals" like the deal that allowed Daimler-Benz to swallow Chrysler in 1998, but rather a swapping of and intertwining of resources that allow the two enjoy larger economies of scale than they could on their own.
hmm, this could be interesting...
12-26-06, 12:53 PM
#3
Hmmm...
Toyota methodology definately does not blend well with Ford mentality.
Perhaps there are a couple of things that Toyota may deem worthy of managing, such as taking control over Jaguar, Land Rover, and perhaps Aston? Maybe it's just wishful thinking (who wants a British car made by the Japanese?!?) but if Ford can't handle it, perhaps a more efficient automaker may be a viable buyer/partner...
Toyota methodology definately does not blend well with Ford mentality.
Perhaps there are a couple of things that Toyota may deem worthy of managing, such as taking control over Jaguar, Land Rover, and perhaps Aston? Maybe it's just wishful thinking (who wants a British car made by the Japanese?!?) but if Ford can't handle it, perhaps a more efficient automaker may be a viable buyer/partner...
12-26-06, 12:56 PM
#4
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From the article:
"For its part, Toyota has lots of technology to offer, as well as experience on building a rock solid reputation for fine automobiles (although one could easily argue that Ford is the one building the better vehicles as of late)."
Autoblog is always good for a laugh
.
"For its part, Toyota has lots of technology to offer, as well as experience on building a rock solid reputation for fine automobiles (although one could easily argue that Ford is the one building the better vehicles as of late)."
Autoblog is always good for a laugh
.
12-26-06, 02:43 PM
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Sounds like the NUMMI plant in Fremont, CA. It's a joint venture between GM and Toyota. This gave GM the opportunity to learn about lean manufacturing from the people who were best at it, Toyota.
"although one could easily argue that Ford is the one building the better vehicles as of late"
-Is that supposed to be a joke?
"although one could easily argue that Ford is the one building the better vehicles as of late"
-Is that supposed to be a joke?
12-26-06, 05:07 PM
#10
there are millions things they can do... Toyota already works with GM (Nummi, Vibe, and more), PSA (Aygo, C1, 107), etc.
Something that is very likely to happen is sharing of hybrid R&D, which Ford already "worked" with Toyota on, and due to GM, DCX and BMW ganging up on Toyota (and Ford) in this arena, it would be smart for both Ford and Toyota to share the costs, especially since Ford doesnt have the money to fund luxurious R&D such as hybrids...
that would definetly be my best bet.
Something that is very likely to happen is sharing of hybrid R&D, which Ford already "worked" with Toyota on, and due to GM, DCX and BMW ganging up on Toyota (and Ford) in this arena, it would be smart for both Ford and Toyota to share the costs, especially since Ford doesnt have the money to fund luxurious R&D such as hybrids...
that would definetly be my best bet.
12-26-06, 07:27 PM
#11
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Yeah if this happens, sry guys but I'm out. I've owned a 00 ford mustang gt(flooded) and it was pure crap. my 93 cavilier was more dependable then the gt. I wont have anything to do with ford again. My RX-7 was made before Ford bought Mazda so its not part of Ford at all.
12-26-06, 07:33 PM
#12
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Anyone who thinks Ford is building poor quality vehicles today is just blind.
12-26-06, 07:49 PM
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Yeah if this happens, sry guys but I'm out. I've owned a 00 ford mustang gt(flooded) and it was pure crap. my 93 cavilier was more dependable then the gt. I wont have anything to do with ford again. My RX-7 was made before Ford bought Mazda so its not part of Ford at all.
12-26-06, 08:07 PM
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Saying Ford makes better quality cars than Lexus is not a fair argument. It's totally a function of the type of car. Somebody who has a Focus and has dashboard rattle is not going to complain. Somebody who has a $50k Lexus will most likely complain about that. This counts against Lexus' on their defects/100 cars ratio. That's just the way I see it, but someone can point out a fallacy in this argument if you see one.
12-26-06, 08:21 PM
#15
I have given this some thought today after reading this at lunch (I almost passed out) and believe Toyota is still clinging to the idea that there would be a backlash if Ford goes under and so let's join up and help them out. 
I cannot reach any positive conclusion as to how Toyota could benefit from any type of partnership with Ford of all companies with Ford akin to a octopus sucking money from Toyotas vast cash arsenal.
Granted Ford licenses older Toyota hybrid technology in their vehicles but that should be the extent of their ,"parternship."
Ford has everything to gain with little for Toyota and lets not get into my 2006 Ford Fusion which must go back into the shop (7 ,8 , or 9 times now) with of course 36040 miles. Guess when the warranty ran out?
I cannot reach any positive conclusion as to how Toyota could benefit from any type of partnership with Ford of all companies with Ford akin to a octopus sucking money from Toyotas vast cash arsenal.
Granted Ford licenses older Toyota hybrid technology in their vehicles but that should be the extent of their ,"parternship."
Ford has everything to gain with little for Toyota and lets not get into my 2006 Ford Fusion which must go back into the shop (7 ,8 , or 9 times now) with of course 36040 miles. Guess when the warranty ran out?