Ford Motor Co. (F) Meeting Raises Speculation
With little news to speak of this holiday week, a meeting in Japan between Ford and Toyota Motors (TM) continues to feed the rumor mill, sparking a slew of speculations. Toyota Motor's Chairman Fujio Cho, a lifetime employee of the second largest automaker, met with Ford's new CEO Alan Mulally allegedly to discuss increased cooperation on technology.
The Nihon Keizi newspaper in Japan reported Ford may be interested in Toyota's hybrid vehicle technology and manufacturing methods. Toyota would only confirm the two executives had a courtesy call, declining to comment on any specifics of the meeting. Toyota was the first carmaker to introduce the gasoline-electric vehicle. According to the article, Ford uses hybrid vehicle parts from suppliers affiliated with the Japanese automaker, and therefore it may be seeking a technological tie-up with the parent company.
Ford would only confirm Mulally meet with Toyota's "leadership," stating it is routine for management to meet with other carmakers on a "variety of topics." The meeting is, however, being viewed by some as a first step in a potential partnership. With US automakers under the spotlight, market participants are anxious to spot signs of a potential change in strategy given challenging industry fundamentals. A potential partnership does have political implications, possibly easing potential trade frictions between the US and Japan.
In the first nine months of the year, Toyota's sales grew 12.5%, compared to an 8.2% decline for General Motors (GM) and a 7.5% drop for Ford. Both Ford and GM plan to cut production next year, eliminating thousands of jobs. The Detroit-based General Motors may lose its title as world's largest automaker to Toyota next year. Toyota bypassed Ford in 2003. One meeting doth not make a union, but tell that to traders sending F shares higher this morning.
--Kimberly DuBord, Briefing.com
The Nihon Keizi newspaper in Japan reported Ford may be interested in Toyota's hybrid vehicle technology and manufacturing methods. Toyota would only confirm the two executives had a courtesy call, declining to comment on any specifics of the meeting. Toyota was the first carmaker to introduce the gasoline-electric vehicle. According to the article, Ford uses hybrid vehicle parts from suppliers affiliated with the Japanese automaker, and therefore it may be seeking a technological tie-up with the parent company.
Ford would only confirm Mulally meet with Toyota's "leadership," stating it is routine for management to meet with other carmakers on a "variety of topics." The meeting is, however, being viewed by some as a first step in a potential partnership. With US automakers under the spotlight, market participants are anxious to spot signs of a potential change in strategy given challenging industry fundamentals. A potential partnership does have political implications, possibly easing potential trade frictions between the US and Japan.
In the first nine months of the year, Toyota's sales grew 12.5%, compared to an 8.2% decline for General Motors (GM) and a 7.5% drop for Ford. Both Ford and GM plan to cut production next year, eliminating thousands of jobs. The Detroit-based General Motors may lose its title as world's largest automaker to Toyota next year. Toyota bypassed Ford in 2003. One meeting doth not make a union, but tell that to traders sending F shares higher this morning.
--Kimberly DuBord, Briefing.com
Labels: F, Ford Motor co.
posted by Stock Administrator @ 11:25 PM
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