The troubles of Ford Motors are real. According to media reports, Ford's CEO met with Toyota's chairman last week in Japan, in a sign that Alan Mulally may be looking to the Japanese rival for answers to the U.S. auto maker's problems.
The M&A market rushed at the news and tried to the real meaning of this report. According to some analysts, the merger may make sense. It will put GM into a bigger challenge. Toyota needs a domestic partner in US to avoid backlash from GM and Ford’s collapsing sales in America.
Ford’s problems can very well be answered by Toyota. Sooner or later Toyota and other foreign car manufacturers will be asked to play in level playing fields. The legacy tax that cripples Ford and GM will have to shared by the auto makers selling cars in the US.
Toyota is looking at the scenario and is open to the scenario of acquiring Ford and making it a low profit center while Toyota keeps going on its rampage on GM and others.
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