Toyota, Ford discuss tie-up

Toyota, which overtook Ford to become the world's second-biggest carmaker in 2003, has confirmed media reports that its chairman, Fujio Cho, and Ford's chief executive Alan Mulally had met last week. However, the nature of the talks has not been disclosed.

Toyota made the disclosure after Japan's Nihon Kezai business paper reported that the meeting initiated by Ford, was to consider a potential tie-up.

In a statement the Japanese auto maker said, "Members of Toyota top management meet with top executives of other car manufacturers when such opportunities arise, such as Toyota chairman Cho recently exchanging greetings with Ford Motor CEO Alan Mulally."

Ford Motor Co's US vehicle sales in November 2006 have slipped further pushing the No. 2 US automaker down to the fourth slot behind Toyota for the second time and now behind Germany's DaimlerChrysler AG as well. Ford, which also detailed planned production cuts, announced a 9.7-per cent decline in its November 2006 sales compared with the same period a year ago.

Ford slipped in rankings even as industry sales have risen a modest 2.9 per cent to nearly 1.2 million vehicles. In comparison Toyota's sales rose 16 per cent boosted by demand for its popular Camry sedan.