Toyota shares rose to a record level yesterday after Fujio Cho, chairman of the Japanese group, met Alan Mulally, Ford's chief executive, amid speculation on possible co-operation between the two carmakers.
Most observers believe a broad-ranging alliance between the companies is unlikely, but there is an increasing recognition that more selective tie-ups would make sense for both companies.
Toyota shares rose 1.9 per cent to Y7,920 (€50.83) after earlier climbing to a record Y7.970. The Nikkei index in Tokyo finished up 53.96 points at 17,223.15, the highest close since May 8th.
Ford shares were 1.2 per cent higher at noon in New York.
Toyota described the meeting as a courtesy call, and Ford noted that it met regularly with other carmakers on "topics of mutual interest".
Mr Mulally is an admirer of the Japanese group's product development and manufacturing processes, some of which he sought to apply in his former job as head of Boeing.
After a robust year for global mergers and acquisitions, markets were quick to seize on the scantest possibility that Ford might be poised to forge a partnership with the world's most profitable big carmaker.
Producers, including Toyota, face broadly similar challenges of high costs, overcapacity and growing regulatory constraints.
However, analysts expressed doubt that Toyota might seek a full alliance with financially troubled Ford.
"Toyota has a very crisp view of why it wants to partner with companies and that doesn't include turning around companies," said Ron Tadross, global automotive analyst with Bank of America Securities in New York.
In October, General Motors broke off talks with Renault and Nissan on a possible three-way alliance.
Carlos Ghosn, Nissan's chief executive, has since said the company wanted to add production capacity in the US in the long term, but that an alliance was "not an urgent issue".
Rick Wagoner, GM's chairman and chief executive, said it had no plans for a broad-ranging alliance with another carmaker.
However, GM does co-operate on individual projects, such as a venture with BMW and DaimlerChrysler to develop "dual-mode" hybrid technology.
Analysts said Ford and Toyota might co-operate in developing alternative fuel technologies, building on their existing partnerships in a fast-evolving area where Toyota is widely recognised as an industry leader. - ( Financial Times service)
