GM turning Japanese?

Billionaire investor Kirk Kerkorian was the person who orchestrated Chrysler’s sale to DaimlerBenz a decade ago. Now he’s trying to do it again with troubled GM, but this time he’s trying to sell it to a Japanese company instead.

NY Post reports a Japanese buyer could be a giant like Toyota or Honda but nothing is comfirmed yet. 88-year old Kerkorian made USD3 billion with the Chrysler sale in the early 90s. Now he has to convince an Asian buyer to take the ailing American automobile manufacturer off his hands. Can he do it? This would be interesting.

Source

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • Sharfox on Dec 12, 2005 at 4:58 pm

    I'd say GO GM!!!!!

    Even the goliath in the industry is now falling and we keep on comparing our small car industry with the whole parts of the world.

    Like or Dislike: Thumb up 0 Thumb down 0
  • cosmo on Dec 12, 2005 at 5:20 pm

    i hope that our fantastic 4(New P1CEO) will buy GM……. just like lotus…. at the end of the day, P1 financial report will show lost, just like MV AGUSTA…. AHAK AHAK HAK AHAK AHAK

    Like or Dislike: Thumb up 0 Thumb down 0
  • Darn, suddenly after I read this I'm dreaming about having Buick or Pontiac with reliable Japanese quality. Just dreaming anyway………..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Pontiac is such a sporty brand. I wonder why GM never tried to bring it to Asia. Instead they bring in some 'Made in South Korea' Chevy's (which I think they look ugly). Oh, not the Chevy Aveo however.

    Buick is nice looking also what?

    Like or Dislike: Thumb up 0 Thumb down 0
  • rafreez on Dec 12, 2005 at 6:31 pm

    I think GM want Pontiac and Buick exclusively for US or Europe (not sure if there is Pontiac in Europe(right hand drive cars). Maybe GM tot asian cannot afford these cars. or GM dont want/have right hand drive patent for buick or pontiac….hahahhahaha….bash GM lah, dont always bash P1…

    Like or Dislike: Thumb up 0 Thumb down 0
  • too big to chew man, could be bad to take over them…. time will tell.

    Like or Dislike: Thumb up 0 Thumb down 0
  • LOL maybe Our government will used up all our national reserves, then help Proton to buy GM…. then be proud of it. LOL

    Like or Dislike: Thumb up 0 Thumb down 0
  • ask Proton to buy lah

    Like or Dislike: Thumb up 0 Thumb down 0
  • gegaoff on Dec 12, 2005 at 9:25 pm

    either TOYOTA or NISSAN, seems too big for them ah… if is true, their finiancial report at least 3years will show lost… emm…

    in fact, will US govt approve such merge? this will involve monopoly to the market… emm…

    cheers…

    Like or Dislike: Thumb up 0 Thumb down 0
  • get_a_life on Dec 12, 2005 at 10:45 pm

    proton can afford GM alright… but you all have to give up your country in order to buy GM. lol

    Like or Dislike: Thumb up 0 Thumb down 0
  • Man, I love this Kerkorian guy.

    He is the man knows the automotive industry very well. This year I heard he was planning to buy some Volkswagen AG shares.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Wah lau eh…

    big man playing giant games… for me… good quality & cheap car, ok performance then will gain my support…

    Like or Dislike: Thumb up 0 Thumb down 0
  • automobile market monopoly it brings a very bad impact to car owner /buyer,

    may be, in future we need 80k to buy a small car like kancil.at that time , i rather take bicycle.

    Like or Dislike: Thumb up 0 Thumb down 0
  • From i what i know, General Motors had a total asset of 16 Billion US Dollars, Ford had around that as well. But Toyota had a CASH FLOW of 58 Billion USD. Which means if Toyota wants, they can buy up the world's largest, and second largest automobile manufacturer at once. I don't think Malaysia Government had that kind of cash reserves.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Paul, can you please get us the updated info on who's the biggest, to the smallest automobile manufacturers please? i dunno where to get it. What i know is:

    1. GM

    2. Ford (Toyota surpassed them earlier this year, now i dunno)

    3. Toyota

    4. Volkswagen

    5. Fiat/PSG (Peaugot, Citroen)

    .

    .

    .

    .???

    Like or Dislike: Thumb up 0 Thumb down 0
  • albagmane on Dec 13, 2005 at 3:19 am

    gosh… sometimes play business too big also no use..

    this is faith.. haih..

    onitofo lor..

    Like or Dislike: Thumb up 0 Thumb down 0
  • Isamu on Dec 13, 2005 at 3:58 am

    Just checked the group financial results from the official websites of the GM & the Japanese Big 3. GM results are for FY2004 because FY2005 ends on 31st December. Japanese Big 3 results are as of Q2 which is September 05:

    Cash Reserve Chart:

    1) GM – USD36 billion

    2) Toyota – USD14.06 billion

    3) Honda – USD6.06 billion

    4) Nissan – (USD35.60 billion) I only see the net debt entry; couldnt see any cash entries.

    Total Assets:

    1) GM – USD479.6 billion

    1) Toyota – USD217.71 billion

    2) Nissan – USD87.92 billion

    3) Honda – USD77.27 billion

    FYI, I just plucked the figures (in Yen but converted online @ xe.com) from the accounting sheets. I do not know whether or not the Japanese accounting standards and the American standards are consistent. GM's long-term debt for the Automotive operations are ~USD35 billion.

    Maybe some accounting guys whom are browsing this site out there want to translate the figures to us.

    Like or Dislike: Thumb up 0 Thumb down 0
  • MutantTomato on Dec 13, 2005 at 3:58 am

    Bob, you're quite right about Toyota's cash reserves. I read an article in Motor Trader about Toyota and their cash power. Also came across the same figures in some other business magazine (forget which one). Toyota can quite easily buy GM lock, stock and barrel.

    Like or Dislike: Thumb up 0 Thumb down 0
  • proton badge might change again. this time to resemble both lotus and gm

    Like or Dislike: Thumb up 0 Thumb down 0
  • MutantTomato said,

    December 12, 2005 @ 7:58 pm

    Bob, you’re quite right about Toyota’s cash reserves. I read an article in Motor Trader about Toyota and their cash power. Also came across the same figures in some other business magazine (forget which one). Toyota can quite easily buy GM lock, stock and barrel.

    ________________________________________________________

    Thanks, at least no one will think i got it wrongly….. :)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ihateproton on Dec 13, 2005 at 6:45 am

    I think neither Toyota nor Honda will make a suicide move like buying GM.. they are just too deep in shit.. i mean debt.

    what might happen will be GM goes bankrupt.. and then their respective parts will be sold off to whoever wants them.. maybe Chevy will be bought by SIAC, Cadillac by Nanjing, Holden bought by whoever, and Opel by whatever..similar to how DC's stake in Mitsu was taken over by Goldman Sachs… maybe Proton can get in on the deal…not!

    if the japanese do take over GM… it will be known as Gennuro Mottor (trying very hard to say it in a Japanese accent!).. ok.. bad joke…

    Like or Dislike: Thumb up 0 Thumb down 0
  • MutantTomato on Dec 13, 2005 at 10:13 am

    yeah… Although Toyota and Honda can buy GM, they won't… It would really be a bad business move. Its not that GM is a bad company or anything. They do have some good established marques under their wing. IMHO, it would be a disaster more because of the American work ethics.

    What I mean is, one of the main reasons why GM is in the state it is now is due to workers' unions. The problem in America is unions are too strong. Although this may seem to be a good thing, i.e. the workers don't get screwed over by the employers, too much of this is bad as well. Problems arise when the unions start demanding compensation for every damned thing! The company has no choice but to fulfill the demands. It can be anything from a simple dental plan, to a massive hike in wages.

    Toyota has managed to stay profitable because although they run a large ship, they run a tight ship. Everything is carefully planned and everything is taken into consideration before a decision is made. Also, we cannot forget the legendary Japanese work ethics. :D

    Like or Dislike: Thumb up 0 Thumb down 0
  • Actually everyone was saying like …. Toyota and Honda….. Honda is actually quite a distance from Toyota if it were about sizes…. Toyota is like… many times the size and capacity of Honda. Honda buying GM is a joke, Toyota buying 3 GMs is not.

    Like or Dislike: Thumb up 0 Thumb down 0
  • "Consolidated debt outstanding was $285 billion on September 30."

    What a super duper huge debt!!!

    Source

    Like or Dislike: Thumb up 0 Thumb down 0
  • Nameless on Dec 13, 2005 at 9:44 pm

    Paul,recently ur news update very slow,like no new research done,is it?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Hameed Koyakuti on Dec 14, 2005 at 12:26 am

    Break GM into various brands, then only can sell……….bits n pieces……

    None of GM brands excites me, damn ol boring design………and less practical……….

    But others hv diff views…….hehehe…..

    Like or Dislike: Thumb up 0 Thumb down 0
  • This is how Kirkorian make more money….

    Like or Dislike: Thumb up 0 Thumb down 0
  • asrota_bajat on Dec 14, 2005 at 11:00 pm

    Hi Guys,

    Do you all think the "Great" Yankees gonna sell it to the Japs? In your dream lah..if so there it goes all the mighty Bush to Koizumi. There it goes the Pearl Harbour past history. Even when M'sia and ASEAN countries didn't invite the US reps for the Summit meeting they had make a lot of noise and potraying that the ASEAN talk for the East Asian Summit (EAS) will not definately bring anything into reality.

    Unless if DrM can go and meet the GM top official and convince them that Proton would be able to save the ailing GM. So the best word to DrM…in your dreamlah…!!! Glove box Proton Wira pun masih senget after 15 years in the market…go and rectify it first b4 start talking about someone else fault…look at yourself first in the mirror lah…you should have make M'sia the "Detroit of Asia" and creat more job to M'sians and give M'sians a better choice of cars rather than the f…king Proton with 1001 of problem since 20 years ago.

    Stay away from the current Proton Mgmt, let them do the thinking…I'm sure out there a lot more talented M'sian than your Ahli Majlis Tertinggi UMNO and your sons. Keep quite lah…

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required