Lest we forget, The last time there was a Renault Alliance.......
Posted on 06/30/2006 1:08:11 PM PDT by Mikey_1962
DETROIT -- General Motors convened an emergency board meeting Friday to discuss a proposal by shareholder Kirk Kerkorian to form an alliance between GM and Renault-Nissan, say two sources close to the board.
The hastily arranged meeting suggests that GM's board is treating Kerkorian's proposal with urgency.
A GM spokesman could not immediately be reached for comment.
In a securities filing, Kerkorian says that the Renault-Nissan alliance is receptive to buying "a significant minority interest" in GM. The filing also says that Kerkorian's investment company, Tracinda Corp., of Beverly Hills, Calif., has discussed the matter with Carlos Ghosn, CEO of Renault and Nissan.
Kerkorian, who controls 9.9 percent of GM stock, sent a letter to GM Chairman Rick Wagoner on Friday "in which Tracinda proposed that General Motors' Board of Directors establish a committee to immediately and fully explore, together with management, a possible opportunity to join the partnership-alliance between Renault, S.A. and Nissan Motor Co., Ltd.," the filing said.
(Excerpt) Read more at autonews.com ...
He must be sellng GM short.......
Lest we forget, The last time there was a Renault Alliance.......
Some wag likened it to tying two stones together so that they would float better.
When your number 1 shareholder sneezes, your BOD get's the flu.
Shades of AMC.
Actually, Nissan has turned it around, and Ghosn is in the process of turning Renault around. From what I read, modern Renaults are not all that bad.
This would mean that GM would be partially French, though.
Nissan is in bad shape? Best operating margins in the industry, and Ghosn is more talented than any of the dinosaurs running GM into the ground today. Renault's quality issues are in the past, and they are strong in Europe. GM would get a huge capital infusion that would assure the company does not go bankrupt. Would be good for shareholders, employees, to shake things up.
This proposal seem somehow so very...appropriate.
....But why would nissan be interested? GM is more liability than capitol.
Strong in China (how they can execute half a world away but not in the US is ironic), solid in Europe, assets that have value like GMAC. And Renault is the investor, not Nissan, which is controlled by Renault. Would allow Ghosn to have a big say in how GM is run, and a big platform like GM, operated well, would be a much stronger competitor to Toyota, Honda, Daimler.
Nissan has turned around the $20 Billion of debt they had but once again sales are slumping.
They still have the quality problems: Consumers Report rates their truck and minivans as the worst.
They are also in the middle of a launch of four vehicles and a headquarters move to Nashville.....
Not the model of stability (but then again anybody who wants stability is crazy to go into the auto business)
Generic Motors could use Nissan's design team. It might actually help their image in the passenger car market.
Doesn't make sense, before GM dumps its pension benefit liabilities. Worth a lot more, after.
"Doesn't make sense, before GM dumps its pension benefit liabilities. Worth a lot more, after."
The only way to do that is through bankruptcy and defaulting on the pension fund?
The Appliance!
GM IS bankrupt, they just haven't admitted it yet. So why would anyone buy it?
"GM IS bankrupt, they just haven't admitted it yet. So why would anyone buy it?"
There are real assets, clearly someone is interested. So, how would you advocate eliminating pension debt?
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