Saturday, May 14, 2005

GM and Toyota partnership good for both

As GM and Toyota meet this weekend, I'm very excited that something special could happen in Japan. In the last couple of weeks Toyota has considered raising prices on its vehicles to 'help' GM. Really the "Japanese rival is worried about doing too well and sparking a protectionist backlash in the United States," according to a great DetroitNews article. In an odd way, Toyota needs GM as much GM needs Toyota. GM needs a jump start into new products, and earlier this week I wrote that GM and Toyota fuel cell talks have to include hybrid vehicles (read article). Sure GM would have to pay a licensing fee to Toyota for its hybrid technology, but GM could gain some momentum, today, rather than 5 - 10 years from now. Ultimately, Toyota needs GM to stay healthy so that the American economy stays healthy. Without America, even mighty Toyota could falter.

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