Honda to face takeover?

With the news that Mitsubishi motors has had a huge 34% stake taken in it by DaimlerChrysler, analysts have been looking at the two Japanese manufacturers left that are not owned by foreign companies - Toyota and Honda. Merrill Lynch has said of the two companies "The risk for Honda is probably greater, but Toyota has no need and is in fact looking at acquiring a European company. Peugeot is the only major (European) one left, and that would be a realistic alliance. But neither Honda nor Toyota will be rushing into anything. They'll wait and see how the industry develops". The Sakura Research Institute sees Honda as being weak. "Honda also says it will go on on its own, but it will be a kind of tight-rope walk for Honda, which does not have such a broad line-up of cars. It is doing alright at the moment, but if one thing goes wrong, the company may be plunged into an abyss".

Further consolidation of the car industry, with Honda, Toyota and Peugeot looking at each other, and the majors, may have long term implications for engine supply in F1.

-Stephen M Baines-