GM and Toyota meeting amid fears of a possible U.S. backlash

[remusrm]

GM and Toyota meeting amid fears of a possible U.S. backlashOfficials are wary that growing Japanese strength in auto market could spark protectionist movesBy Yuri Kageyama / AP Business WriterComment on this storySend this story to a friendGet Home DeliveryTOKYO - When the heads of General Motors and Toyota meet this weekend, their concerns couldn't be more different: The U.S. automaker is losing money, while the Japanese rival is more worried about doing too well and setting off a protectionist backlash in America, its biggest overseas market.Struggling General Motors Corp., the world's top automaker, posted a $1.1 billion loss for the first fiscal quarter ended March 31, and its debt was downgraded to "junk" status last week. Toyota Motors Corp. recorded 291 billion yen, or $2.8 billion, in profit over the same period and commands an edge in an environmental technology called "hybrid."Fears are emerging in the back of the minds of officials about a replay of the trade friction that unfolded in the "Japan-bashing" 1980s when Japan's booming automakers were blamed for robbing car sales and jobs, prompting outraged American auto workers to smash Japanese cars in symbolic protest.Japan, which depends on exports for growth, is vulnerable to protectionist moves in the United States, which has threatened to curb Japanese auto imports in the past for alleged unfair trade practices. Tokyo also worries that trade friction could ignite anti-Japanese feelings in America, Japan's most important political and military ally.Prime Minister Junichiro Koizumi said Thursday after a meeting with U.S. Chamber of Commerce President Thomas Donahue that they discussed their concerns about General Motors."The auto industry is a symbol of the United States, and we wish the best for GM," Koizumi told reporters, adding that U.S. and Japanese automakers must coexist and prosper together.Toyota Chairman Hiroshi Okuda caused a stir recently by saying he was considering raising prices on Toyota cars in the United States as well as sharing technological research to help troubled American automakers in an apparent effort to stave off anti-Japanese sentiments.GM has been losing U.S. market share to Toyota and other Asian rivals and has faced enormous health care and post-retirement liabilities. Ford Motor Co. hasn't fared much better.Koizumi said he had also met with Okuda, who was very worried about the plight of American automakers, and they agreed on the need to work out cooperative relations.Toyota confirmed that GM Chief Executive Rick Wagoner and Toyota President Fujio Cho are meeting when Wagoner visits the 2005 World Expo in Aichi, where Toyota is based, this weekend.The Nihon Keizai Shimbun, Japan's biggest business daily, reported Thursday that Cho and Wagoner may be discussing Saturday a possible joint venture to produce fuel cell vehicles in the United States although the report denied a deal was imminent.Fuel cell vehicles send out no pollution because they run on power produced when hydrogen stored as fuel in the car combines with oxygen in the air to make water. Hybrids deliver good mileage by combining an electric motor and gasoline engine.Earlier this week, Cho played down speculation in media reports that a deal with GM in ecological technology, such as hybrids and fuel cells, is getting hammered out at their weekend meeting. Cho told reporters he often gets together for meals with Wagoner, and he hopes to introduce Toyota president-elect Katsuaki Watanabe.Toyota and GM already have a partnership, although it does not involve investment stakes in each other. They run an auto plant in California together and have exchanged research before, including a 1999 pact to work on environmental technology together.GM's spokesman for advanced technology Scott Fosgard has denied any specific talks about a technology pact are planned for this weekend.In contrast to two decades ago, Japanese automakers are seen as less of a threat in the United States these days and have gradually won acceptance as corporate citizens providing jobs to American workers.Toyota and other Japanese manufacturers, Honda Motor Co. and Nissan Motor Co. _ once dwarfed as newcomers next to the Americans in the auto industry _ are now all doing well in U.S. sales. But the Japanese have also made a point of opening plants in the United States and buying U.S.-made parts."The decline of the once invincible American auto industry in the face of Japanese competition could set off a nationalistic backlash among American consumers," Japanese daily Asahi Shimbun said in an editorial this week. "There is every reason for Japanese automakers to work hard to avoid unnecessary conflict." All I have to say is screw GM. They need to listen to consumers and stop making deal with companie that sell them junk parts. People do not think Delphi made bad parts, but GM. Also, I am pro MPG, but from a drivability point of view, most SUVs and big engine cars barelly get 250 with a tank for 40 Gallons. That is just stupid. You need to stop and refil every 2 days. Some exotic cars get better gas milage. I think they should go under, and learn a lesson. Listen to consumers and make better cars, or hell parnet with Toyota on making better cars then be like a socialist in thinking. Do not asume people want SUVs. That fashion went away. Now people buy BMW and Cadillacs if they want to make a fashion statement. Hell the 300C. SUVs are no more then a working truck with a cover at the end. People got them and now they realized that is stupid. Except texans:-). Ok I will stop. But think about it...

[michaelgt]

I would like to present the fact that my SUV can go 400 miles on my 37 gallon tank, unless I am towing my 9500 lb trailer. As for GM going under, I hope you will contribute to the US Pension fund, because there is going to be a tremendous number of GM retirees that need to be fed and housed if GM goes under.

[remusrm]

life is like wallstreet. i do not have to bail you out if you make a bad choise. sorry. my buddies escalade 01 i think and my other family friend expedition get about 250-300 in city traffic. welcome to LA. I got a vibe since has good gas milage and also plenty of space...

[ToolGuy]

I agree with you on what GM is doing and not doing. They are getting beat at their game and it shows. This is nothing new for GM is was just overlooked years ago and now it cannot be avoided. However, people seem to love SUVs and do not care about the gas mileage. The problem with that is the people that buy them, if no one did they would not be made. After two SUVs, a Blazer and Jeep, I do not want another. People think bigger is better and offer more protection, BS. Try and stop a 4000 lb+ vehicle on ice in a skid. On the news just about every day there is a roll over, why because these idiots in SUV's think they are unstoppable and are going too fast. I know not every SUV owner is like this but seems too many are these days. Build the products people want and sell a lot of them not more SUVs because they have more of a profit in them because of a high residual. I blame the Unions as well over the years and not just this year. Unions were good a LONG time ago.... I also do not think there will be a backlash, the change or transition is already happening right in front of people. People are different then years ago and drive what they feel like now, very little loyalty anymore to one brand.

[ToolGuy]

Quote, originally posted by michaelgt »I would like to present the fact that my SUV can go 400 miles on my 37 gallon tank, unless I am towing my 9500 lb trailer. As for GM going under, I hope you will contribute to the US Pension fund, because there is going to be a tremendous number of GM retirees that need to be fed and housed if GM goes under.You related to Patrick?

[jimincalif]

So, the two biggest players in an industry get together for a meeting. After that meeting, the one which is gaining market raises its prices. Sounds to me like prohibited collusion and price-fixing under the Sherman anti-trust act.

[michaelgt]

Yes, I am related to him. I did not know if you would have known him from work or not.