Is a Toyota GM Merger Possible? Marchionne Sure Thinks So.
Fiat Chrysler Automobiles opened on Wall Street earlier this week, marking the official Fiat Chrysler Group merger, spearheaded by Sergio Marchionne. The merger made the newly formed Fiat Chrysler Automobiles one of the biggest players in the automotive market, but there are still bigger kids on the playground, and Marchionne thinks they might band together in what he believes is a very possible Toyota GM merger.
A merger of that size (Toyota and GM are among the world’s three biggest automakers) would definitely catch the attention of regulators, who ward off monopolies, but as 24/7 Wall St. points out, even this big of a merger wouldn’t overtake any of the world’s largest markets. For instance, a Toyota GM merger would still mean that the newly formed company would boast less than a 30% market share in the US, and even less in Europe and China.
Of course, in this scenario, Toyota would be buying out GM. Toyota has a market cap of $180 billion, compared to GM’s $46 billion. On top of that, this has not been a banner year for The General, which has been plagued by recalls. (Though, despite the rough year, GM just experienced its best third quarter global sales since 1980.) A Toyota GM merger would make financial sense, as both companies own vast amounts of dealerships and production facilities all around the world.
So what do you think? Do you buy into Marchionne’s theory, or is a Toyota GM merger just too big to ever happen?
News Source: 24/7 Wall St.
Austin Blankenbeckler is the General Manager of Carlisle Chevrolet Buick GMC Cadillac and the third person in his family, after his father and grandfather, to work at the Waxahachie Chevy dealership. Carlisle Chevrolet Buick GMC Cadillac has been selling quality cars to the Ennis, Midlothian, and Waxahachie area since 1926 and their commitment to quality and customer service is more than just a business approach, it’s the family way. Stop by the Waxahachie GM dealership today to see what a difference three generations of car and truck selling can make. Austin on Google +