At the request of the ailing Ford Motor company, one of the two last American automobile manufacturers, Toyota has been summoned into high level talks. While some reports claim that the talks may be only limited to Ford seeking fuel efficient technology help from Toyota, which is considered to be the leading expert at hybrid and other fuel saving technology, there is always the strong possibility that some sort of affiliation or merger talks could result at some point.
A merger could certainly fulfill many important business goals for Toyota, giving them a far deeper inroad into the vast American automobile marketplace. For Ford it could become a lifesaving business move, although it would more than likely become a disaster for high paying American manufacturing union jobs and hit the United Automobile Workers Union very hard. Most union jobs that pay as much as $60 or more an hour could give way to $15 an hour nonunion jobs and loss of some or all retirement or health care benefits.
If the talks between Ford and Toyota result in merger or buyout talks, Toyoya could purchase a 51% share in Ford and have a dramatic impact not only on the marketing of Ford and Toyota products in the U.S. , but it could become a real bodyblow to the UAW and the future of American labor unions role in representing and organizing American manufacturing workers.
If anything the Ford and Toyota talks do represent some desperation on the part of Ford to remain in the automobile manufacturing business, as the American manufacturer's line of automoblies has shrinked from the much larger line of the 1960's and 1970's.
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