June 29, 2015 - 1:28 pm ET
Alix Partners, the turnaround firm, last week assessed the ability of automakers to pay for the cool but expensive technology about to flood into vehicles.
You know, stuff like autonomous driving, connectivity, rearview video screens, lightweight materials and electrified powertrains.
One chart was particularly noteworthy. It ranked automakers by their EBITDA margins and market caps -- in other words, how much they make and how much they’re worth.
Perhaps to no one’s surprise, Toyota was by far the best-positioned. Predictable as that may be, it’s a timely reminder that Toyota probably will be able to set its own course through whatever choppy seas lie ahead.
In fact, it’s been interesting to watch Toyota do just that in recent months.
Its linkup with Mazda effectively took an intriguing merger candidate off the board for other, less-wealthy automakers.
And in mid-June, Toyota shareholders approved the company’s plan to issue “Model AA” shares, which can be sold only in Japan and must be held for five years.
Foreign investment funds yowled at the restrictions. Toyota’s view was that it was raising patient capital to fund “research and development of next generation technologies,” according to a company document.
The restricted shares buffer Toyota somewhat from stock market turbulence in what may be a turbulent era.
But, mostly, Toyota’s moves illustrate its determination -- and ability -- to move into the high-tech future on its own terms.
It’s another indicator of Toyota’s financial power, and of the golden rule of business: “Those with the gold, rule.”
