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Report: Toyota, Ford executives meet to discuss partnership

12/26/2006, 1:57 PM

By admin

Top executives from Toyota and Ford met in Tokyo recently to discuss a potential partnership between the companies, according to a report by Japan’s Nihon Keizai Shimbun.

The meeting was reportedly held at Ford’s request. Toyota Chairman Fujio Cho and Ford President and Chief Executive Officer Alan Mulally met last week as a first step. Mark Fields also attended the meeting.

The two parties plan to meet again in January for further talks, the business newspaper said.

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12/26, 1:59 PM

posted by:

Andre Neves

LoL

12/26, 2:27 PM

posted by:

Syrax

Ford Prius? Toyota Mustang?…that’s why we saw that worship to toyota from ford a few topics ago…

12/26, 3:14 PM

posted by:

S-60-driver

Thats really lame of you! blah blah, Ford Prius, Toyota Mustang….. grow up!

Ford will have their own vehicles and Toyota, too. Ford will get Toyota’s quality. Toyota to get Ford’s help in design. Like all of you said…. all toyota cars are too plain.

Anything to kill GM…… :-P

12/26, 3:21 PM

posted by:

MyGodBeatsYourGod

Toyota has has a pretty good run with NUMMI in Fremont, CA and it’s relationship with the folks in the RenCen.

Most of Ford’s NADP automotive product is based on it’s Mazda relationship (1/3 ownership) and a pretty good plant run by Mazda in Flat Rock, MI.

Very weird situation, this.

They worked together on (well, Ford bought) hybrid tech, but where else would they meet up?
Does Toyota want to save face by beating Ford?
Do they want a full-sized pick-up a Texan will buy?

12/26, 3:55 PM

posted by:

bb_454

Or maybe Toyota would be interested in Ford quality. LOL :)

12/26, 4:21 PM

posted by:

YourNameHere

the article says Ford asked for the meeting…they are looking for something. i think the hard part is going to convince toyota that ford has something they want….”sure Mr. Mulally we would LOOOVE to develop a new grill for your 7year old focus, and you want it with 5 razor blades?! ok we will get the guys right on that”

12/26, 4:22 PM

posted by:

Robert

For the last time, Ford did not buy Toyota’s hybrid technology. Ford licenses diesel patents to Toyota in exchange for hybrid patents because the two systems developed independently were potentially too similar. So, to avoid lawsuits, they swapped knowledge.

This would be an interesting venture, and I’m not sure what the two companies would get from it. I know Ford’s R&D work in materials for various auto parts is significant and that its design studio has been producing some good stuff recently, but I’m not sure if that’s what Toyota’s looking for (or needs, really). They could be looking for further diesel collaboration or capacity renting of closed manufacturing plants? In exchange, Ford needs serious help with supplier relationships and a fix for its bloated unions. It could also use a good small car, but I know Ford has recently been working with Fiat on that.

An article suggested fuel cells, but Ford’s been doing a lot of work in that department – more than Toyota recently. It could be that Ford and Toyota would combine their billions and invest in even more innovative fuel systems that gain greater efficiencies. Both companies have done massive work in this area, but instead of beating each other up over it, it would be nice to see them collaborating.

It will be interesting to see what comes of this, if anything.

12/26, 4:57 PM

posted by:

le mechan

That explains why the 07 camry looks just like the 04 mazda3

12/26, 4:58 PM

posted by:

Kenny W

Thank you Robert for saving me some typing. You basically said everything I was going to say (including correcting MGBYG). I would just like to add that Ford would potentially gain a lot more from this than Toyota. Fords biggest selling point to Toyota would probably be excess plant capacity (which might not be such a bad bargaining chip) and in exchange Ford could study the Toyota process & gain technology. It’s something they’ve done before but they didn’t seem to learn too much from it. If they did partner up on Fuel Cell technology I think it would be really cool if GM and Honda did the same. Those two, from my readings, are certainly at the fore-front of that field and could learn from each other. Interesting news regardless.

12/26, 6:05 PM

posted by:

Syrax

S-60 Driver: If toyota gets design help from ford then god help US. as a s60R owner myself i can say that volvo has more to teach to toyota about design than ford…

12/26, 6:16 PM

posted by:

hockeygod1331

Toyota would be interested in aligning itself with Ford trucks, as Toyota has always struggled for market share in that category.

How many people are driving around in Toyota trucks, especially serious construction workers in the South?

Smart move for Toyota..

12/26, 7:06 PM

posted by:

F451

Oh woe betide those who know not an inkling about business, but base their vehicle relationships upon nationalism. And further woe are those who nary understand that it tis brainpower that has driven Toyota to its current day status.
.
Ford is doing more to be a serious player in just this past month than GM has done in three decades. I’ll put my money on Ford on this one.

12/26, 7:16 PM

posted by:

Driven

Ford is drowning fast and is looking to Toyota to throw them a life line. Toyota will have to weigh any promises Ford makes against the possibility that Ford will pull Toyota down with them. Fords reputation with quality could rub off on Toyota – unreliable by association. Toyota needs to be careful not to tarnish their good name created over decades of quality products. The perception people have of Ford could be worse than any benefit Ford promises to Toyota.

Ford shareholders should be demanding they shop a total buyout that would replace all of management and not a partnership. Keeping Ford management after what they have done to the company would be like fixing the Exxon Valdez and letting Joseph Hazelwood take the helm again.

12/26, 8:46 PM

posted by:

1c3d0g

Drive: Toy Ota’s “quality” is already down the drain, so there’s nothing to worry about that. It appears Ford is grasping all opportunities it can with these plans, so something is *seriously* wrong if they want to partner with their bitter rival. Then again, even Daimler-Chrysler and Volkswagen got it going with their Bluetec venture, so maybe it’s not so bad after all. Still, I’m not sure I’d want to see a crappy high-revving I-4 powering the F-*50’s/Mustangs.

12/26, 9:08 PM

posted by:

Elvio

I doubt it that Ford will help Toyota for the trucks. If Ford did that, it would be for Ford to shot at its own feet. Is Ford really that stupid?? **may be**

As for Toyota, I don’t think they need anything from Ford. I guess Toyota will ask Ford to go to hell by itself.

Anyway….I think Ford is pathetic.

12/26, 9:52 PM

posted by:

MyGodBeatsYourGod

No need to correct me because I am not wrong. Ford pays Toyota for hybrid tech. It pays royalties. Hello??

Toyota controls suppliers as well…

http://www.edmunds.com/insideline/do/News/articleId=107777

Tough being so smart and all…

12/26, 10:38 PM

posted by:

YourNameHere

why would toyota want help in a delcining market?! thats like selling the most cassette players

12/26, 10:53 PM

posted by:

VDuv Kux Klan

That would be a dumb move from Toyota, they dont need any kind of crap specially from Ford, they are ok as they are right now, no cheap plastics needed :)

12/26, 11:35 PM

posted by:

Robert

MyGodBeatsYourGod…

Aisin is a Toyota supplier and obviously Ford has to pay Aisin for parts. The article (despite implying it in the title) never suggests that Ford does not have its own technology. Ford developed their technology seperately. Not all the components in an Escape are the same as in a Prius or Highlander, in fact many of them are different the programming is as well. It was rumored that Toyota was eyeing Ford’s programming because it is so good. When everything was developed, Ford realized that the differences were too similar to avoid potential legal problems, so they swapped some intellectual capital (and maybe a little money, not sure) but Toyota didn’t give them new technology or hold their hands or anything. Believe it or not, the hated motor company can actually develop technology for fuel-efficiency.

The fact that they used a Toyota supplier is not a crazy concept (they use Delphi often, which is very tied to GM), but Toyota’s relationship to their suppliers is much different than just the standard purchasing/supply relationship Ford and GM have with their suppliers. Toyota invests time and (a little) money making their biggest suppliers efficient and well aligned with the rest of the company, which makes the supplier more loyal to Toyota. Therefore, it is important for Ford to source components from other manufacturers, because if Toyota wants more supplies, the supplier will fall back on their loyalties. Ford would have to pay significantly more money to get the same parts (ie – the laws of supply and demand with a built-in inefficiency).

This means, of course, Ford will have to redesign some parts of its system and update a few components to keep the parts free of IP conflicts (I’m sure there is a cost-benefit analysis involved – sales, emissions regulations, losses, etc, but I’m sure it will point to becoming independent of Toyota’s whims). So, yes, they will have to change their hybrid system a little bit, but they’re already designing new tech for their GenII hybrids, so that might take care of it.

Back to the topic, this would be a great place for Toyota and Ford to collaborate. They are both dumping billions into it – they’d save a lot of money if they developed jointly.

12/27, 1:27 AM

posted by:

Stuart

That would make Toyota/Ford the number one company in the world. Can’t wait to see GM get its ass kicked

12/27, 1:37 AM

posted by:

Brendino

I don’t think it’d be a merger, Stuart. But a partnership could be interesting.

What does Toyota need? Better trucks, better styling, diesels, and more American factories, but they’re already en route to all of these.

What does Ford need? Money, a decent four-banger, a good B-seg vehicle (GM did have a Corolla platform at one point and squandered it…if Ford could get a Yaris platform and make it look good then they’re set), and perhaps some business-end stuff. Ford’s quality on their new cars is already top-notch, so I’d imagine they’ll be fine in about three or four years once their lineup refresh is complete.

Interesting to think about, though I really don’t think Toyota will bite.

12/27, 6:30 AM

posted by:

Syrax

i guess sindinica (or something like that), showed a few articles back the indian fiesta sedan, a subcompact sedan that probably would fit very well in usa…

12/27, 12:15 PM

posted by:

Stuart

Brendino – You obviously have not driven a euro Ford. They have some of the best 4 cylinder engine, quality on par with toyota, the best handling cars in all but the D-segment (Mondeo) and Small cars on sale today (KA, Fiesta, C-Max, Fusion etc)

12/27, 12:20 PM

posted by:

YourNameHere

i think the only real possibility is sharing hybrid development. there is nothing else toyota needs except MAAAYBE production factories…but i would expect them to just build there own more efficient facilities

12/27, 1:49 PM

posted by:

meanpants555

Ricardo Head, what are you driving these days? I’d like to assign a ‘gay’ quotient on it.

12/27, 3:15 PM

posted by:

MC

AHHH CRAP!!!! not another one of these. I expect to see a “There will be no Ford and Toyota partnership” news thread by the end of this week as usual.

12/27, 6:05 PM

posted by:

Toy Yoda

Since American companies have a higher perception of value over seas than in the States, why don’t Ford just close shop in America and just sell to China and Europe? :)

In jest, I would hazard that the smartest thing for Ford to do is to swap plants with Toyota. The swap would be uneven since Ford has excess capacity. So for every 1.3 Ford plants in America, Toyota will swap 1 plant in Southeast Asia.

 
 
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