Subject: Re: Diagnosis: Supersize
On Tue, 26 Mar 2002, Charles Jannuzi wrote:
> So why then does Ford own Mazda and GM own Isuzu, with almost controlling
> shares of Suzuki and Fuji Heavy (Subaru)? These companies have also been
> making overtures at Honda, since Honda's go-it-alone strategy can't match
> the Toyota 20 billion dollar war chest.
Dennis Robert Redmond :
> Honda, like BMW, is doing just fine. Isuzu and >Mazda are niche players,
sort of like Volvo, which >got snapped up by Ford.
Mazda is number 5 in Japan and at one point was 4. It wasn't niche in the sense that it was truly a comprehensive auto manufacturer. It, however, wasn't one of the major winners in the export quota system to the US, having to pretty much market through Ford (when Ford was rather pathetic).
DRR:
>Most estimates I've seen on Toyota's stash put it at >30 billion, but this
may include land and
>other assets, as opposed to instant liquidity.
Depends on what exchange rate you use and how you value their assets and their debt.
>CJ: the case of D-C, Mitsubishi will make eventually most of what goes out
> branded as Chrysler and teach Daimler how to make something besides
> overpriced luxary cars.
DRR:
>Maybe some diesel tech, but Daimler's production >engineering is, like,
> one of the few reasons a sentient species would >want to visit this
shambles of a planet.
Not just diesel (which probably D-C doesn't need anyway), Mitsubishi is truly tops in gasoline engines. Look under the hood of the Chryslers that don't break down. D-C needs Mitsubishi (the way Ford needs Mazda but has been to stubborn to admit) to show them a way to make a small car and still make money. Also, if the US ever did get strict about emission and fuel mileage standards, Mitsubishi would save their bacon. As I said, the Gods of Daimler will run the show, Chrysler has the dealerships and loans in the world's most lucrative car market, and Mitsubishi will make the cars (especially the engines), some in Japan, some as joint ventures (such as Mitsubishi-Chrysler platforms) in the US, to keep the Americans calm.
What, DRR, do you make of the GM takeover of Daewoo? Highly subsidized by S. Korea, isn't it?
Charles Jannuzi