Putting GM and Toyota in perspective
- Thread starter Kirby
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I doubt Toyota and its shareholders would approve of such a bid, besides that guy is probably talking out of nowhere. Maybe they can buy out segments or brands of GM (pontiac buick gmc chevy and cadillac) but not the entire GM world-wide. I find it funny how few people seem to realize just how BIG and global a company Toyota is...
You know I did some research on this topic and I have found Toyota Motors market value is $130 billion dollars and a global rank of 26 were as GM is ranked 4 with a total valuation of $195 billion can't find by division which would make more sense.
You see Toyota does a lot of other stuff to, I read somewhere that they own one of the largest plastics refinment companies in Asia based in Kyota, which obvisouly they use on their cars where as GM does it the (new) American way and is contracting out more and more production (probably they're downfall), but Toyota has to be careful because a lot of companies have diversified to much and that can hurt themselves because if something goes wrong in one market the others have to make up for it and it all trickles down.
I would never see it happen though GM still has VERY VERY deep pockets its just you don't hear about it - look at the stock in the 90s it was above 100 for 5 straight years, that's some big cahunas your putting away there for the long term.
You see Toyota does a lot of other stuff to, I read somewhere that they own one of the largest plastics refinment companies in Asia based in Kyota, which obvisouly they use on their cars where as GM does it the (new) American way and is contracting out more and more production (probably they're downfall), but Toyota has to be careful because a lot of companies have diversified to much and that can hurt themselves because if something goes wrong in one market the others have to make up for it and it all trickles down.
I would never see it happen though GM still has VERY VERY deep pockets its just you don't hear about it - look at the stock in the 90s it was above 100 for 5 straight years, that's some big cahunas your putting away there for the long term.
This is a really good article....I think it hits the nail on the head....
http://moneycentral.msn.com/content/invest/extra/P113050.asp?GT1=6305
GM will be back...they're playing the cycle--nows the time for huge write-offs, hammer the suppliers and labor contracts. Now might be the time to buy some GM stock!
http://moneycentral.msn.com/content/invest/extra/P113050.asp?GT1=6305
GM will be back...they're playing the cycle--nows the time for huge write-offs, hammer the suppliers and labor contracts. Now might be the time to buy some GM stock!
I may tend to agree with you in some aspects but I see a HUGE problem with GM’s failure to face reality. Quite simply-they are blind! The management style is way too old and outdated and changing this may require a whole new corporate culture IMO. It’s like the company is completely self destructive, and despite what they say, too may signs of the same are still too prevalent.
That article only says what many people know. That GM is in trouble for a whole bunch of reasons. The article also includes suggestions. Many of them quite good. However, that runs smack into one of GM's big problem: management that has less worth than used toilet paper. GM needs big changes. Unfortunately, I highly doubt it's gonna happen.
Toyota isn't in as fantastic shape as people think (altho much more easily corrected than GM's problems). B/c they're so large and b/c they're Japanese, they have these extended relationships w/ their suppliers. While it's likely too costly to buy enough Toyota stock to influence them (like get them to buy out GM), it's possible to buy enough stock in one of the related supplier companies for example. Once you get control of that supplier, b/c of how interrelated they all are, it may be possible to influence Toyota itself that way.
Toyota isn't in as fantastic shape as people think (altho much more easily corrected than GM's problems). B/c they're so large and b/c they're Japanese, they have these extended relationships w/ their suppliers. While it's likely too costly to buy enough Toyota stock to influence them (like get them to buy out GM), it's possible to buy enough stock in one of the related supplier companies for example. Once you get control of that supplier, b/c of how interrelated they all are, it may be possible to influence Toyota itself that way.
I mentioned Japanese because the Japanese have a distinct way of doing business. The giant corporations are a lot more integrated with their suppliers than US companies are. Because of that integration, if you can gain control of a small supplier, it's possible (through all the interconnectedness) to potentially gain control of the big corporation. Toyota has spotted that problem during the few attempts and made countermoves, but the potential for that problem still exists. Doesn't matter how profitable Toyota is.