Yet eight months later, the Nissan Diesel deal still remains up in the air. That should provide a lesson of caution as talk heats up about Japanese car makers becoming merger or acquisition targets. For potential buyers among U.S. and European car giants, most Japanese companies are either too expensive or too risky, analysts say. And Japanese executives don't share the merger fever that has swept Wall Street, meaning they're not about to rush into a deal.
Mergers do have a role to play in revving up the industry.
Also, a worldwide glut in cars is forcing the industry to consolidate, as last year's merger between Daimler-Benz and Chrysler Corp. showed. Such logic kept the rumour mill churning at the Detroit car show in early January, the world's top annual car event. But the latest talk may not be taking certain realities into account. Two of the companies most often mentioned, Nissan and Mitsubishi Motors, suffer from serious financial problems. That naturally makes prospective suitors nervous and might encourage them to wait and see if the situation grows truly dire.