Automakers' Troubled Marriages
Investors should be wary of strategic tie-ups to combat technological change.
This article is for subscribers only.
Automakers are increasingly coming together to tackle the onslaught of technology. Over the past year, several car companies have announced strategic partnerships to deal with the disruption. But there isn't always strength in numbers.
The latest such alliance is Hino Motors Ltd. The Japanese diesel bus and truck maker, which is majority owned by Toyota Motor Corp., agreed last Thursday to a tie-up with Volkswagen AG's truck unit. Together, the two hope to tackle the industry buzzwords of autonomous driving and electric cars. No capital changed hands, and shareholders cheered, sending stock in Hino up as much as 6.7 percent on the day.