By TOM GILLESPIEAssociated PressThe merger of two of the world’s biggest companies could lead to a merger of the automotive and tech industries.
The combined company, Dell Inc. and Toyota Motor Corp., would be known as Toyota Motor Corporation, and it would have a market capitalization of $6.6 trillion.
Dell, the world leader in computer systems, software and peripherals, is a major player in the PC market, but Toyota has a long history of innovation and is the world headquarters for Toyota Motor Manufacturing, a U.S.-based company.
The merger would give Toyota the ability to expand its global reach, said Bill Davidson, chief executive officer of the Toyota Motor division.
It would also allow Toyota to sell cars in other countries, including China, which is home to the world market for Toyota vehicles.
Dill, a maker of semiconductors, semiconductor components and electronic components, has been trying to get into the auto market since at least 2006, Davidson said.
Toyota is now looking at other potential investments, including the creation of a joint venture with Nissan Motor Co.
The deal would create a powerful global conglomerate.
It would also give Dell the power to leverage technology to provide better customer service and improve manufacturing processes, Davidson added.
The companies have been negotiating for years, but they have not made any formal proposals yet, Davidson told The Associated Press.
The company’s current operations are in Tennessee and Florida, Davidson explained.
Dell is headquartered in Knoxville, Tenn.
The company’s corporate headquarters are in Menlo Park, Calif.
Toyota has its U.K. headquarters in London.
The announcement comes at a time when the auto industry is reeling from a global economic downturn.
Ford Motor Co., for example, has shuttered some factories in China and Mexico.
The automaker announced on Monday that it will make a $1.9 billion deal to buy rival Volvo Cars for $37 billion.