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Discussion Starter #1
It appears Toyota's original target of 15 percent global market share (which would put it ahead of GM) was not really a target after all... rather just a stepping point to even further domination of the market. Also, this report states that Toyota is actually slightly *behind* NISSAN in profits?

http://www.detnews.com/apps/pbcs.dll/article?AID=/20051127/AUTO01/511270335
 

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Well, Toyota probably lost some money because they started up Scion, started up the hybrids, AND they have to pay for the "crush GM" marketing campaign:p
 

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94 FWB, 93 SDV, 94 FWB (sold), 90 Brougham (sold)
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Not a shot in Hell. GM will not be bought by Toyota, ever. GM is going to rebound. What, you think the company has never been through rough times before? What did everyone say back in '92? Does everyone think this is the end of GM? Ha.
 

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CTS
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Blackout said:
I bet you that Toyota will buy GM in the future. As GM continues to plumit *sp?* and Toyota continues to soar its only a matter of time
Maybe, but I don't think anyone would buy GM until they do some serious house cleaning.

Generally speaking, only healthy companies with a bright future are bought by other companies.

At this point, GM would come with a negative cash flow of about $2billion a year and all the pension plan / UAW baggage. Plus, Delphi, a GM spinoff, and it's largest part supplier just declared bankruptcy. Despite the bankruptcy, Delphi workers are threatening to strike, and this could choke GM's part supplies, and cause GM to lose even more money (believe it or not). Ultimately, GM might have to declare bankruptcy.

I'd really be surprised if Toyota wants any part of this...
 

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Most likely what will happen, is that GM will eventually implode, and Toyota will just take all of the market share. Basically, they won't NEED to buy out GM...
 

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Plummet:

aka Free fall.

aka Downward spiral.

aka Auger in.

aka Down the toilet.

aka In the shitter.
 

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Discussion Starter #9
Nah, I dont think its so much about Toyota buying GM, as it is about Toyota more importantly wanting GM's *place* in the market. A takeover of GM would seem hostile and might have negative backlash, but no one could/would very much oppose a well engineered market dominance. It doesnt matter GM does or doesnt do if Toyota starts to eat away at all but the most loyal customer base it has.
 

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You guys that talk about Toyota buying GM don't understand the situation. GM assets are worth more than twice as much as the total assets of all the Japanese car manufacturers combined!! They couldn't buy GM if they wanted to, they don't have access to that much cash.
 

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Yup, GM is going to go under next year.

Toyota is gonna buy GM in 2 years

Toyota is gonna buy Mircosoft...

then Exxon/Mobil

Then over throw the United States gov't....

you'll see, just a matter of time.

The world as we know it is going to end.
 

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Black the Darkside
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Not to say it will happen again but remember the FEDS bailing out Chrysler Corp and Chrysler rebounding and paying off the debt in record time. Unfortunately it wasn't long lasting and the Kraults bought them out. It could happen again if things get to tight. China want to get into the American Oil Companies but the FEDS won't allow it. That could happen also.
 

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Night Wolf said:
Yup, GM is going to go under next year.

Toyota is gonna buy GM in 2 years

Toyota is gonna buy Mircosoft...

then Exxon/Mobil

Then over throw the United States gov't....

you'll see, just a matter of time.

The world as we know it is going to end.
You're just joking, correct?
 

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RobertCTS said:
Not to say it will happen again but remember the FEDS bailing out Chrysler Corp and Chrysler rebounding and paying off the debt in record time. Unfortunately it wasn't long lasting and the Kraults bought them out. It could happen again if things get to tight. China want to get into the American Oil Companies but the FEDS won't allow it. That could happen also.
That is probably true. I don't see the US Government letting GM degrade to the point where it is bankrupt, and then bought by Toyota. It is a no lose situation for the politicians. They will have overwelhming support from US citizens to bail out GM.

Also, someone mentioned that Toyota couldn't afford GM. I am not sure that is true. GM's market cap is only $12 billion. To put things in perspective, my company has a $35 billion market cap, and another bank just came in and swallowed us up whole.

However, I still think GM being bought by anyone is highly unlikely.
 

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SilverCTS said:
That is probably true. I don't see the US Government letting GM degrade to the point where it is bankrupt, and then bought by Toyota. It is a no lose situation for the politicians. They will have overwelhming support from US citizens to bail out GM.

Also, someone mentioned that Toyota couldn't afford GM. I am not sure that is true. GM's market cap is only $12 billion. To put things in perspective, my company has a $35 billion market cap, and another bank just came in and swallowed us up whole.

However, I still think GM being bought by anyone is highly unlikely.
GM has total assets of over $300 billion! That does not include spinoffs that answer directly to GM which total another $220 billion.
 

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I think it's highly unlikely that Toyota would want to buy GM. I mean, GM is a sinking ship, and if Toyota bought it, it would just completely sink and they'd lose a TON of money.

Rather, Toyota will just wait until the GM ship sinks, and then they will become masters of the seas...:devil:because with GM gone, people will be forced to buy Camrys:devil:
 

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Randy_W said:
GM has total assets of over $300 billion! That does not include spinoffs that answer directly to GM which total another $220 billion.
Aren't they cancelled out by the liabilities on the balance sheet?

In order to acquire GM, another company only needs to pay the shareholders their asking price. The current market cap is $13 billion not $12 billion, my mistake. That is how much it would cost to pay-off all the shareholders.

However, I am sure that the shareholders will want substantially more, a lot more. So, even if the asking price is $50 billion (totally overpriced), I am sure Toyota could come up with the cash.

There would probably be a stock swap involved and GM shareholders would love that, because they would finally get a good return on their investment. Toyota has a market cap of a $160 billion. Toyota is rich, rich like Exxon Mobil rich.

However, I just don't see any chance of this happening. Why would Toyota do this? It doesn't make sense.

It really sucks to be almost bankrupt.
 

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Nah, you guys are worrying way to much! GM will rebound; there's no chance of GM being baught by Toyota. Rumors are easy to spread and fun to talk about, but let's be realistic! GM will be GM for much time to come.
 

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Randy_W said:
GM has total assets of over $300 billion! That does not include spinoffs that answer directly to GM which total another $220 billion.
What matters when one company looks into buying another company is the positive cash flow, and GM right now has none of it. They have $19B in the bank, and it's dwindling fast. GMAC bank is costing them millions which is why it's up for sale, they lost $26.5M just with the failed employee discount sale, and the retiree/healthcare situation is costing GM even more millions. Their stock is rated at junk. GM could have a trillion dollars of assets, but it's all worthless if there's no solid financial foundation to support it.

It would be akin to you owning a $3 million mansion and having a million in the bank. Only each year your salary has been going down to the point you're making $8.00/hr. Now, you own the mansion outright, you have money in the bank, but the utilities for the house are $1500.00/month, and the taxes are $10,000.00/yr. Do you refinance the house to have money to pay for the expenses? How long before you have to sell the house and buy a smaller one?

The size of a company does not reflect it's current financial health. Which is why Toyota will NOT buy GM. It would cost Toyota more to make GM profitable again than they would actually pay to buy it.
 
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