05-16-05, 12:15 AM
This relates primarily to environmentally friendly programs and Hybrid vehicles, but its the road to further cozy relations for sure...
"Saddled with huge health care and pension liabilities, GM lost US$1.1 billion in the first quarter. Its bonds were recently downgraded to junk status and its stock hit a 10-year low in April.
Toyota reported US$2.8 billion in profit in the same quarter and commands an edge in the market for environmentally friendly hybrid vehicles, which run on a combination of electricity and gasoline."
So why exactly would Toyota want a closer partnership with GM, except to save some short-term research costs? In long term, Toyota really doesn't need GM for anything.