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Toyota, Ford not interested in FCA merger
Mon, Jun 15 2015Sergio Marchionne will preach the benefits of mergers to anyone who'll listen, but his calls for industry consolidation may be falling on deaf ears. At least, that is, the ears of those who the Fiat Chrysler chief would most like to bend. Not only is General Motors uninterested, but according to The Detroit News, neither are Toyota or Ford. "It's something we would not be interested in," said Toyota's North American chief Jim Lentz, at the groundbreaking ceremony for the new Toyota Technical Center. "At 10 million (vehicles) we have enough scale right now to do what we need to do. There really would be no advantage for us." Toyota isn't the only one unenthused by the prospect of merging with Fiat Chrysler Automobiles. The Detroit News also reports that Ford, though it may yet to have been approached by Marchionne, wouldn't be interested either. "We're not a suitor for FCA," said Ford CFO Bob Shanks. "We don't see that type of opportunity as one that applies to us." With GM, Toyota, and Ford expressing disinterest in Marchionne's merger idea, the FCA chief will likely start looking elsewhere – or look for other ways to compel his primary candidate to reconsider. He may eventually find a partner – more likely in the Far East or within Europe – but it may not take the form of the major player Sergio has hoped for. News Source: The Detroit NewsImage Credit: Bill Pugliano/Getty Chrysler Fiat Ford Toyota Sergio Marchionne FCA merger fiat chrysler automobiles
Toyota NA CEO says his excitement for hydrogen sedan is rising
Fri, Apr 4 2014Toyota has an undeniable vested interest in seeing its hydrogen sedan succeed when it goes on sale in the US next year, so it's no surprise that the company's North American CEO, Jim Lentz, says that he's got more hope for the car now than ever before. And if we remember ways that others in the company, like Bob Carter, have loudly sung hydrogen's praises, we have to assume that positivity is running awful high in Torrance. In fact, Lentz said that the US side of the company is far more excited by the H2 car than colleagues in Japan. Speaking at The Wall Street Journal's ECO:nomics conference in Santa Barbara, CA this week, Lentz said: After we've seen the product, understand its range, its driving dynamics, its refueling, we're a lot more bullish than Japan - probably about fivefold more bullish. It's just a question of how many can be produced now. Well, we've driven this car, and we still feel that Toyota is placing a big bet on the technology. One important issue is cost, but Lentz would not say exactly how much the car costs to make or what it will be priced at. He did say, though, that the production cost has dropped by 95 percent from the $1 million price tag the car wore ten years ago. That hints at a production cost of around $50,000. Lentz also said he thinks it will take at least a decade for hydrogen vehicles to hit sales of 500,000 per year in the US. Speaking to Bloomberg, he said: Their acceptance could get off to a quicker start than the hybrids did. I think you're going to see a lot more marketing of the concept of fuel cell much sooner than you did for hybrids, because basically the whole industry is behind it.
Owner reflects on his $20.91 Toyota unintended acceleration settlement check
Sat, Nov 29 2014Where General Motors and Takata have grabbed many auto safety-related headlines this year with their problems with ignition switches and airbag inflators, a few years ago, a similar sort of scrutiny fell on Toyota for unintended acceleration. After multiple settlements with various parties totaling billions of dollars, the issues seem largely behind the Japanese automaker now. Owners are actually starting to receive their money, but it isn't exactly breaking the bank. Payouts are expected to be between $37 and $125 per person. Computer science student Jonathan Sourbeer received a check for just $20.91, and he considers what that money actually means in an op-ed in The Wall Street Journal. Sourbeer's biggest gripe is that the roughly 85 lawyers in the case are receiving $227 million in attorneys' fees and expenses, while the 25 primary plaintiffs and class representatives receive a total of just $395,270. According to the Frequently Asked Questions about the settlement, Toyota set up a $250 million fund to pay affected owners, as well. The money isn't for injuries or damages but for alleged economic loss to the vehicles. However, Sourbeer says he feels no personal suffering and still has the same car. In addition to the settlement, the automaker obviously has its own legal fees to deal with, as well. Sourbeer wonders how this is all going to affect Toyotas in the future. Obviously, the money has to come from somewhere, and it likely gets amortized over the company's vehicles in the coming years to add a few dollars to each one. That puts the problem back onto customers. Anyone involved in a class-action suit has likely seen this happen first hand. The lawyers take a large chunk of the money, and the rest is distributed in tiny morsels to those actually affected. Unfortunately, Sourbeer offers no solutions beyond saying the system needs to change.