The news as released
15Dec2000 13:28
STOCKWATCH: Torotrak boosted by Ford, Toyota partnership tie-up reports
LONDON (AFX) - Shares in Torotrak PLC were leading the FTSE 250 in early
afternoon trade, boosted by reports that its former licencee Toyota Motor Corp
is in talks with Ford Motor Corp about forming a partnership, dealers said.
At 1.22 pm, shares in Torotrak were up 21-1/2 pence to 134.
Toyota was reported in the Japanese press to be in discussions with Ford, a
long-standing Torotrak licencee, to cut production costs.
Friday editions of Yomiuri Shimbun and Nihon Keizai Shimbun said the talks
included joint development of a new small-sized passenger car for Europe,
exchange of environmentally friendly technologies and sales of Ford's cars in
Japan.
These reports come a month after Toyota revoked its licence for Torotrak's
infinitely variable transmission (IVT) system, sending shares down 60 pct in the
following week.
Traders speculated that the reported talks may have had a bearing on
Toyota's cancellation of its agreement with Torotrak, more than the engineering
problems Toyota cited.
It also raised hopes that Torotrak could still "get in the back door" with
the Japanese firm despite its contract loss, with any environmentally friendly
products developed by Ford seen as likely to evaluate IVT.
Both Ford and Toyota confirmed they had held discussions at chief executive-level today, although both parties said the talks were routine and rejected the alliance reports.
bge/rn
Source: Updata Newstore
