What will happen if Toyota buys GM?

captainalias

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Let's get away from this right vs. left debate. There's been talk of the possibility of GM going bankrupt over the pension plans (for reasons I don't quite entirely understand), and Toyota possibly stepping in to buyout GM.

A few questions.

1) Is this something Toyota would even want to do? Their CEO prev. stated that they would rather not be in that position, and would even try to help GM, than risk a national American outcry against a 'foreign' takeover.

2) Or would we see a partial stake by Toyota, similar to how Ford owns parts of Mazda and all of Volvo?
 
captainalias said:
Let's get away from this right vs. left debate. There's been talk of the possibility of GM going bankrupt over the pension plans (for reasons I don't quite entirely understand),
The unions have negotiated deals in the past that GM simply can not afford to honor anymore. GM is a health care provider for retired employees first and an automaker second now.


1) Is this something Toyota would even want to do? Their CEO prev. stated that they would rather not be in that position, and would even try to help GM, than risk a national American outcry against a 'foreign' takeover.
There would be a backlash. And I think Toyota would also have to assume all of GMs outstanding obligations. The Japanese automakers have an advantage in the fact they don't have to pay the 100% medical coverage to it's employees. That's not the case in America. I don't know how this works out well for Toyota.

2) Or would we see a partial stake by Toyota, similar to how Ford owns parts of Mazda and all of Volvo?[/QUOTE]
This is what I'd expect.
 

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