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GM to hold talks with Nissan, Renault
CNNMoney.com ^ | 7/7/2006 | Chris Isidore

Posted on 07/07/2006 11:45:21 AM PDT by eraser2005

NEW YORK (CNNMoney.com) -- General Motors announced Friday that it would hold "exploratory discussions" with Renault and Nissan regarding a potential combination of some sort of the three companies.

The statement from GM (Charts) said the decision to start talks was a "recommendation by the company's senior management." But it is clear that the push came from Kirk Kerkorian, the company's largest shareholder, who a week ago wrote to GM to say that Nissan and Renault, which already have joint ownership positions in each other, was interested in buying "a significant minority interest" in GM.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Extended News; Japan; News/Current Events; US: Michigan; US: Tennessee
KEYWORDS: auto; autoindustry; chrysler; ford; generalmotors; gm; honda; nissan; renault; toyota
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More news on this topic - it looks like formal talks may be starting soon.

Interestingly, though, GM already does some partnering with Toyota with NUMMI and through a few tech deals. I wonder how a formal partnership with Nissan could affect this. Would Toyota break off and seek other partners or go it alone (more likely)? They already have a few tech deals with Ford, but Ford also controls Mazda... Together their market share would be near 40% in the US, which might be considered "too much"... DaimlerChrysler is the only other potential partner here, but would that be much better considering the Lexus/Mercedes competition?

1 posted on 07/07/2006 11:45:22 AM PDT by eraser2005
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To: eraser2005

What's good for GM is good for.........France?...........


2 posted on 07/07/2006 11:47:53 AM PDT by Red Badger (Follow an IROC long enough and sooner or later you will wind up in a trailer park..........)
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To: eraser2005

Yeah, make your cars more French, GM, that will help.


3 posted on 07/07/2006 11:48:20 AM PDT by NonValueAdded ("I'm all in favor of a dignified retirement: Why not try it on Kerry as a pilot program?" M. Steyn)
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To: eraser2005

I like the idea of a three way merger. Good opportunity to cut some car lines and consolidate manufacturing. I would ditch Saturn, Buick, and maybe Infinity.


4 posted on 07/07/2006 11:49:15 AM PDT by Smogger (It's the WOT Stupid)
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To: Smogger; apackof2

Only one man can save GM:

ROGER PENSKE

I can't understand why the board hasn't begged him to take the job, unless perhaps he has quietly declined it already.
Although at age 68 he's 20 yrs younger than Kirk Kerk, LOL


5 posted on 07/07/2006 11:51:25 AM PDT by nascarnation
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To: Red Badger

Renault and Nissan have been in a partnership for some time. Nissan,USA is based in Nashville, TN (as of this summer).


6 posted on 07/07/2006 11:52:14 AM PDT by Warren_Piece (Smart is easy. Good is hard.)
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To: eraser2005
Don't forget that GM owns Izuzu, and has partnered with Suzuki with the Geo Metro and Tracker.

Renault did such a fantastic job turning AMC around that I can't wait for them to do their magic again on GM.

7 posted on 07/07/2006 11:52:26 AM PDT by Yo-Yo (USAF, TAC, 12th AF, 366 TFW, 366 MG, 366 CRS, Mtn Home AFB, 1978-81)
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To: eraser2005

Man!!! How bad does it have to be for GM to be talking with . . . . Renault!!????


8 posted on 07/07/2006 11:54:46 AM PDT by DustyMoment (FloriDUH - proud inventors of pregnant/hanging chads and judicide!!)
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To: Yo-Yo

I didn't know they were involved in AMC. I thought that was Chrysler, but I thought they did a bang up job of keeping Nissan out of bankruptcy, mainly by redesigning their product lines and bringing back some interesting cars(280Z, 300ZX, etc)


9 posted on 07/07/2006 11:54:49 AM PDT by Smogger (It's the WOT Stupid)
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To: DustyMoment

Pretty bad. For GM.


10 posted on 07/07/2006 11:55:39 AM PDT by 1rudeboy
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To: Yo-Yo

But does ANYONE take Isuzu or Suzuki seriously as a car manufacturer?

Mazda is light years ahead of those two....


11 posted on 07/07/2006 11:57:14 AM PDT by eraser2005
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To: Smogger

Renault took a 5% share in AMC in 1979 (sound familiar?) and boosted that to 49% in 1983. They sold out to Chrysler in 1987 when they found they couldn't save what was left, the Jeep and Eagle divisions...


12 posted on 07/07/2006 12:02:17 PM PDT by eraser2005
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To: Smogger
You don't remember the Renault Le Car? or the Renault Alliance?
13 posted on 07/07/2006 12:02:29 PM PDT by Yo-Yo (USAF, TAC, 12th AF, 366 TFW, 366 MG, 366 CRS, Mtn Home AFB, 1978-81)
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To: DustyMoment

Exactly what I thought too.


14 posted on 07/07/2006 12:13:08 PM PDT by Obadiah
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To: Yo-Yo
How about the Renault Caravelle (sp?)
Probably the flimsiest car ever produced. In the event of a flat tire and prior to jacking up the affected corner of the car, a steel pipe was inserted inside the door sill to prevent the body from bending in half...
15 posted on 07/07/2006 12:18:35 PM PDT by Eric in the Ozarks (BTUs are my Beat.)
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To: Eric in the Ozarks

The Le Car is the only car I ever saw with only three lugnuts on each wheel.


16 posted on 07/07/2006 12:22:23 PM PDT by Yo-Yo (USAF, TAC, 12th AF, 366 TFW, 366 MG, 366 CRS, Mtn Home AFB, 1978-81)
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To: eraser2005

I also wonder about the Toyota angle. I just bought a Pontiac Vibe which has a Toyota engine. It's a fantastic car for us and we thought it was the right combination of domestic/foreign. (34 mpg so far!!)


17 posted on 07/07/2006 12:36:32 PM PDT by kdot
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To: kdot

pontiac vibe is a toyota matrix


18 posted on 07/07/2006 12:40:17 PM PDT by Kewlhand`tek (Those that can't , Teach. Those that can't teach , Report)
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To: kdot

It is interesting to point out that the Ford Fusion and the Ford Five Hundred both offer transmission options which are built by Aisin, a Toyota subsidiary. And Ford's ability to infringe on Toyota's patents on hybrid tech is based on agreement to let Toyota infringe on Ford's direct injection tech (that tech is being used on the Mazdaspeed6 and CX-7), IIRC....


19 posted on 07/07/2006 12:51:26 PM PDT by eraser2005
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To: Kewlhand`tek

It is essentially the same car, but how many parts are interchangeable? Its amazing how many parts are not interchangeable on the old Corolla and Prizm, considering they were essentially the same car....


20 posted on 07/07/2006 12:52:23 PM PDT by eraser2005
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