daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine

Go Back   SkyscraperCity > Infrastructure and Mobility Forums > General Developments and Discussions

General Developments and Discussions » Bridges | Cycling | Maritime



Reply

 
Thread Tools
Old June 30th, 2006, 04:48 PM   #1
Cloudship
Registered User
 
Join Date: Jun 2005
Posts: 534
Likes (Received): 14

GM - Renault Partnership?

This was on Yahoo! News.

http://news.yahoo.com/s/ap/20060630/...da_gm_alliance

Tracinda: Nissan, Renault want GM stake 9 minutes ago



NEW YORK - Automakers Renault SA and Nissan Motor Co. are interested in purchasing a significant stake in General Motors Corp. and including the struggling automaker in their alliance, according to a letter sent Friday to GM from billionaire investor Kirk Kerkorian's investment company.
...

Tracinda, a large minority shareholder in GM, said the existing French-Japanese partnership has created "tremendous engineering, manufacturing and marketing synergies, resulting in substantial benefits and cost savings to both Renault and Nissan."

Tracinda urged GM's board to form a committee to "immediately and fully explore this opportunity together with management," as it feels the alliance could help GM "realize substantial synergies and cost savings and thereby greatly benefit the company and enhance shareholder value."
Cloudship no está en línea   Reply With Quote

Sponsored Links
 
Old June 30th, 2006, 11:39 PM   #2
Paddington
Registered User
 
Paddington's Avatar
 
Join Date: Mar 2006
Location: The Southland
Posts: 4,502
Likes (Received): 779

Holy shit, that's absolutely disgusting. I don't want any foreign automakers buying a piece of GM.
Paddington no está en línea   Reply With Quote
Old June 30th, 2006, 11:58 PM   #3
Nephasto
Enlightened user
 
Nephasto's Avatar
 
Join Date: Feb 2004
Location: Porto
Posts: 5,863
Likes (Received): 68

^Poor you!

Hehe!
__________________
Long live rail freight!!
Nephasto no está en línea   Reply With Quote
Old July 1st, 2006, 12:02 AM   #4
Æsahættr
Registered User
 
Æsahættr's Avatar
 
Join Date: Jul 2004
Location: Minneapolis / Pittsburgh (Uni)
Posts: 2,938
Likes (Received): 5

GM has always had partnership with foreign companies... Nissan, Subaru, etc
__________________
> flickr
>> Minneapolis | Manila | Cebu
Æsahættr no está en línea   Reply With Quote
Old July 1st, 2006, 01:11 AM   #5
I-275westcoastfl
Registered User
 
I-275westcoastfl's Avatar
 
Join Date: Feb 2005
Location: Clearwater, Florida
Posts: 5,684
Likes (Received): 222

GM owns Opel and a few others.
I-275westcoastfl no está en línea   Reply With Quote
Old July 1st, 2006, 02:00 AM   #6
Paddington
Registered User
 
Paddington's Avatar
 
Join Date: Mar 2006
Location: The Southland
Posts: 4,502
Likes (Received): 779

Quote:
Originally Posted by lotrfan55345
GM has always had partnership with foreign companies... Nissan, Subaru, etc
GM has no partnership with Nissan. In the past they have owned stakes in foreign automakers, like Subaru, Isuzu, Suzuki, etc. But most of these stakes have recently been sold off.
Paddington no está en línea   Reply With Quote
Old July 1st, 2006, 02:06 AM   #7
MoneyBags
Registered User
 
Join Date: Nov 2004
Posts: 37
Likes (Received): 0

..i thought Renault took a large stake in Nissan a couple years ago, and doesn't Renault own a large stake in Samsung Motors?..and doesn't GM own Daewoo and a couple more?..
MoneyBags no está en línea   Reply With Quote
Old July 1st, 2006, 02:13 AM   #8
AltinD
The Modecator
 
AltinD's Avatar
 
Join Date: Jul 2004
Location: Tiranë / DUBAI / Vienna
Posts: 30,087
Likes (Received): 3269

You're right on all that.
AltinD no está en línea   Reply With Quote
Old July 1st, 2006, 02:17 AM   #9
AltinD
The Modecator
 
AltinD's Avatar
 
Join Date: Jul 2004
Location: Tiranë / DUBAI / Vienna
Posts: 30,087
Likes (Received): 3269

Quote:
Originally Posted by Paddington
Holy shit, that's absolutely disgusting. I don't want any foreign automakers buying a piece of GM.
Yeah, how dare them ...
AltinD no está en línea   Reply With Quote
Old July 3rd, 2006, 02:30 PM   #10
Cloudship
Registered User
 
Join Date: Jun 2005
Posts: 534
Likes (Received): 14

SUre, in the past GM had stakes in many other companies. This time it's the reverse - Renault group wants to buy a stake in GM. Kind of odd in a way, Renault is so much smaller than GM, and their product philosophies are so radically different.
Cloudship no está en línea   Reply With Quote
Old July 3rd, 2006, 02:39 PM   #11
meow
Registered User
 
meow's Avatar
 
Join Date: Mar 2005
Posts: 4,199
Likes (Received): 14

this may be the first step for Renault to enter the US market
meow no está en línea   Reply With Quote
Old July 9th, 2006, 07:10 PM   #12
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

^to re-enter the market. They had bought AMC in the 80s but didn't do well, and exited the market. I'm not sure how much of a cost benefit there would be in the beginning. Nissan and Renault worked, because there was little overlap (Nissan strong in North America, Asia, and Renault strong in Europe, South America and Asia). GM is also strong in North America and Europe, so there'd be quite a bit of overlap with Renault and GM's Open/Vauxhall units.
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 07:15 PM   #13
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

From: http://www.washingtonpost.com/wp-dyn...000454_pf.html
________________________
Quote:
Global Partners Possible For GM
Kerkorian Urges Alliance With Nissan, Renault
By Sholnn Freeman
Washington Post Staff Writer
Saturday, July 1, 2006; D01

Billionaire investor Kirk Kerkorian yesterday pushed General Motors Corp. to explore a partnership with Nissan Motor Co. and Renault SA, both of which are led by turnaround expert Carlos Ghosn.

In an extraordinary series of events set into motion by Kerkorian, whose investment company owns 9.9 percent of GM's shares, the Detroit automaker's board and management are being pressed to join a global alliance with Nissan and Renault. Under a partnership already in place, Renault holds a 44 percent stake in Nissan, while Nissan owns 15 percent of Renault's shares.

In a letter to GM chairman and chief executive Rick Wagoner, Tracinda Corp., Kerkorian's investment firm, said Nissan and Renault were open to buying significant stakes in GM. In a separate letter, Tracinda notified Ghosn and Renault Chairman Louis Schweitzer that Tracinda has asked GM to form a committee to explore a potential alliance.

Nissan also called on GM's board of directors to study the deal. "At this point, it is necessary that the GM board and top management fully support this project in order to start the study of this opportunity after agreement of Renault and Nissan boards," Nissan said in a statement.

Nissan said Ghosn was approached by Kerkorian and Jerome B. York, a GM board member and Kerkorian adviser, to assess the merits of GM joining the partnership.

GM said it had not received an offer or proposal from Renault or Nissan. But GM said its board will consider Tracinda's request to form a committee to study the proposal.

GM shares rose $2.34, or 8.6 percent, to $29.79, a level they had not reached since October. Financial analysts said Nissan's interest was an affirmation that GM shares were undervalued.

Under the partnership between Renault and Nissan, the two automakers operate as stand-alone companies, but Ghosn is president and chief executive of both. Ghosn is credited with rescuing and rebuilding Nissan after it ran into trouble in the late 1990s. As it has returned to financial health, Nissan has been particularly aggressive in the United States, where its new products have added to pressure that Detroit automakers were already getting from other Asian automakers, particularly Honda Motor Co. and Toyota Motor Corp.

GM is restructuring after years of losing U.S. market share to rivals like Nissan. The loss of market share in its home turf has led to the loss of tens of thousands of high-paying U.S. auto jobs and the closing of assembly plants around the country. GM lost $10.6 billion last year, although results have improved this year.

Analysts said they doubted that either side is planning to rush into a major collaboration. Wagoner was severely criticized for focusing GM on a global alliance strategy of partial investments in auto companies around the world. Those stakes were sold when GM's financial situation collapsed last year. Wagoner has claimed successes in his turnaround plan at GM, but he has acknowledged that the company still has a lot of work to do.

Ghosn also has a full plate. Quality has slipped as Nissan steadily expands production and brings out new models.

Tracinda owns 56 million shares of GM stock, which accounts for 9.9 percent of the company. Kerkorian is GM's largest individual shareholder. He began amassing a stake in the company last year. Since then, his adviser, York, was added to the GM board and has criticized the company for the sluggish pace of its turnaround.

David Healy, auto analyst at Burnham Securities Inc., said Kerkorian might be trying to scare off short-sellers, who are betting that GM's stock will drop, by making moves to shore up GM's share price. He said he doubted that the back and forth between GM and Kerkorian could lead to Ghosn's installation in the top job at GM.

"I think it would have absolutely no management affect," Healy said. "GM and Nissan are bitter enemies. Nissan has been eating GM alive for years. Nissan is one of three reasons that GM's market share and profitability has collapsed in the last three years, the others being Toyota and Honda."
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 07:15 PM   #14
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

From: http://www.moneyweb.co.za/shares/int...ews/649701.htm
_______________________
Quote:
GM-Renault-Nissan wouldn't be easy, past auto pacts show
Neal E. Boudette, Norihiko Shirouzu and Stephen Power, Wall Street Journal
Posted: Mon, 03 Jul 2006 08:08

Before General Motors Corp., Renault SA and Nissan Motor Corp. start any discussions about a three-way alliance, they might want to ask DaimlerChrysler AG about the rocky road it has traveled since its own grand automotive merger.

The German-American auto maker once promised to become the world's most profitable car company, but instead has gotten bogged down by infighting, profit breakdowns at its Chrysler and Mercedes divisions and unexpected difficulties realizing synergies. The chief executive who engineered the deal, Jürgen Schrempp, stepped down after he was berated by angry shareholders. Today, DaimlerChrysler's market value is about $42 billion less than in the heady days after its marriage was announced.

"It is pretty tough getting an organization to go in a direction it doesn't want to go in voluntarily," Dieter Zetsche, who succeeded Mr. Schrempp on Jan. 1, said in an interview on Saturday. Seven years after its merger, the company is still trying to deliver "some of the major benefits" of the deal, Mr. Zetsche said.

DaimlerChrysler's experience doesn't bode well if GM decides to pursue the suggestion of its largest shareholder, Kirk Kerkorian, to open discussions about joining the existing Renault-Nissan partnership. The idea was proposed Friday in a letter from Mr. Kerkorian's investment company, Tracinda Corp., to GM Chairman and Chief Executive G. Richard Wagoner Jr. GM's board has said it would consider the idea. Carlos Ghosn, the CEO of both Renault and Nissan, has discussed the matter with Mr. Kerkorian and is willing to talk to GM, according to a statement by Renault and Nissan.

Any three-way alliance could mean the departure of Mr. Wagoner, who has been implementing his own plan to turn around GM, and leave Mr. Ghosn overseeing the three companies. Mr. Ghosn is hailed for pulling back Nissan from the brink of collapse in 1999 and turning it into one of the world's most profitable car makers.

The auto industry, however, is rife with ambitious mergers and alliances that have gone awry. Last year, GM had to pay $2 billion to get out of a 2000 alliance with Italy's Fiat SpA after the Italian auto maker's finances and market share began to collapse. In the 1990s, BMW AG lost billions after buying Britain's Rover. DaimlerChrysler even tried a three-way partnership of its own, bringing in Mitsubishi Motors Corp., but unraveled the tie-up last year.

Mr. Ghosn's initial thinking about a GM-Renault-Nissan partnership is centered on the potential costs reductions, people familiar with the matter said. He suspects the three companies together could reap substantial potential savings if they were to cooperate on engineering; share basic underpinnings, or "platforms," of vehicles; and consolidate their manufacturing operations, these people said.

A Renault spokeswoman said yesterday the company had no additional comment beyond its statement Friday that it is "open" to an alliance with GM. The company declined to make Mr. Ghosn available for an interview.

Born in Brazil to Lebanese parents and educated in France, Mr. Ghosn took the reins at Nissan in 1999 when it was losing money and had net debt of 1.4 trillion yen ($12.2 billion at current exchange rates). Renault paid $5.4 billion for a 37% stake in Nissan and took over management control. Mr. Ghosn slashed costs by shuttering assembly plants and reducing headcounts, by dissolving many of the company's long-standing ties with some 1,400 companies, many of them parts suppliers and dealers in which Nissan held sizable equity stakes, and by asking parts makers to help reduce Nissan's purchasing costs by 20%. Mr. Ghosn used those costs savings and proceeds from the sale of stakes in companies to pare the massive debt Nissan was carrying at the time.

He also invested in new, boldly styled vehicles like the Nissan Murano sport-utility vehicle and Infiniti G35 sports car, which buffed the company's tarnished image. For the fiscal year that ended in March, Nissan earned net income of 518.1 billion yen, although sales have sagged in the critical U.S. market so far in 2006. In February, Mr. Ghosn, by then also chief executive of Renault, outlined a restructuring plan to improve the French auto maker's profitability.

Part of the effort relies on having Renault and Nissan share the cost of developing engines, transmissions and platforms. Extending that effort to include GM would be complicated. The world's largest auto maker by sales has significant excess manufacturing capacity, several poorly performing brands and a product line heavy with trucks while consumer tastes have been moving to more fuel-efficient vehicles. GM is also weighed down by pensions and health care for tens of thousands of union retirees. Mr. Wagoner last week announced a buyout program would enable GM to shed 35,000, or about 30%, of its hourly workers by year end, some two years sooner than it had previously expected.

Any effort to have GM, Renault and Nissan develop components and vehicles together could take years, judging by DaimlerChrysler's track record. "The consultants always tell you there are all kinds of synergies," Mr. Zetsche said. The first years of DaimlerChrysler's merger was marked by deep suspicion on both sides of the Atlantic. Mercedes engineers guarded their technology and saw little to gain by sharing it with Chrysler, which quickly stumbled to massive losses.

Relations only began to thaw when Mr. Zetsche, a veteran Mercedes manager, was sent to fix Chrysler in 2000. Chrysler used Mercedes expertise in rear-wheel-drive vehicles to develop the 300 sedan, which became a hot seller. But broader efforts to share parts and cooperate moved more slowly. DaimlerChrysler is just getting past some of those issues now, Mr. Zetsche said.

One challenge for auto makers is the six-year life cycle of their products. Getting two companies on the same cadence often forces one to make a financial sacrifice. Either one side shortens its cycle and writes off some of its investment, or the other lengthens its cycle and must go a year or two with older models in the market.

For GM, Renault and Nissan, another crucial task of making a partnership work would be ensuring employees and top management are completely committed to the idea.

At Nissan, Mr. Ghosn enforced unity by declaring he and the rest of management would resign if the company failed to return to profitability by the end of the year ended March 2001 -- the first year of Mr. Ghosn's three-year turnaround plan for Nissan.

But uniting two separate organizations is a greater challenge. DaimlerChrysler had difficulties on this point. Mr. Schrempp delegated the task of pushing cooperation to a Mercedes boss who sought to keep it separate from Chrysler.

Mr. Zetsche said he is seen in the company as a "credible broker" since he has worked at both divisions. Since becoming CEO in January, he has sought to accelerate cooperation. Chrysler and Mercedes may develop a family of six-cylinder engine together, he said.

His task has also been made easier because both units have had crises. "That helps," he said. "You can't afford to fight anymore."

In the rush to realize synergies, DaimlerChrysler sometimes "overlooked the feeling of people," Mr. Zetsche said. "Part of it is psychology." Now the company is through the "deep valley of disappointment and misunderstanding."
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 07:16 PM   #15
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

From: http://seattlepi.nwsource.com/busine...renault04.html
_______________________
Quote:
Tuesday, July 4, 2006
GM alliance would reshape auto industry
Renault, Nissan consider buying into struggling American carmaker

By MIKE HOUSEHOLDER
THE ASSOCIATED PRESS

DETROIT -- With the recent announcement that foreign competitors Renault SA and Nissan Motor Co. are considering buying a significant stake in General Motors Corp., the hunter has become the hunted.

GM, which not too long ago used its power and size to buy into smaller, less developed companies, now is potentially on the receiving end of such a transaction. If the proposed partnership goes forward, it will reshape the global auto industry and may give struggling GM the aid it needs to revive.

Talk of a three-way alliance already is paying short-term dividends for the Detroit carmaker.

Bank of America auto analyst Ron Tadross on Monday upgraded GM from "sell" to "neutral." And GM shares soared nearly 9 percent on Friday, the day billionaire mogul and major GM shareholder Kirk Kerkorian said Renault and Nissan were interested in including GM in their alliance.

GM's sales figures -- released Monday afternoon -- showed it had sold 25.7 percent fewer vehicles than in June 2005. Year-to-date, GM's sales were down 12.2 percent.

Also on Monday, Nissan and Renault said they had approved opening talks with GM over the potential alliance. Renault owns a 44.4 percent stake in Nissan, which in turn owns a 15 percent stake in the French company, and the French automaker's board voted to negotiate with the U.S. company.

A message seeking comment was left Monday for GM. On Friday, GM said in a statement the Kerkorian request would "be taken under advisement" by its board.

Carlos Ghosn, the chief executive of both Renault and Nissan, has discussed the matter with Kerkorian and is willing to talk to GM, according to a separate statement by Nissan and Renault.

Talk of an alliance comes as GM is moving forward on an extensive turnaround plan designed to improve its poorly performing North American division, which is suffering from declining profits, high labor costs and growing competition from Asian automakers, such as Nissan. GM announced plans last year to close 12 plants by 2008 and recently said 35,000 hourly workers had agreed to retire early or accept a buyout offer.



Nissan was on the brink of bankruptcy when Ghosn was sent by Renault to lead Nissan in 1999. Ghosn engineered a cost-cutting and morale-boosting campaign that revived the automaker. GM's wobbly financial footing coupled with Ghosn's track record as a turnaround specialist has some on Wall Street predicting that a Ghosn-led GM would be a step in the right direction.
Morgan Stanley & Co. analyst Jonathan Steinmetz said Ghosn's record of cost-cutting and product development would provide much-needed help for GM in those areas.

"He is the ultimate agent of change," Steinmetz said. "He did stuff in Tokyo that no one thought could be done."
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 07:17 PM   #16
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

From: http://www.freep.com/apps/pbcs.dll/a...607070343/1014
_________________________
Quote:
Renault should be given more thought as big player

French automaker controls alliance with Nissan

July 7, 2006

BY WILLIAM DIEM
FREE PRESS SPECIAL WRITER

PARIS -- It might be easy for Americans to overlook the significance of Renault SA in the proposed alliance of General Motors Corp., Nissan Motor Co. and the French automaker.
Many Americans haven't given the company much thought since they stopped seeing Le Cars on the road and Renault sold AMC to the then-Chrysler Corp. in the late 1980s.
But while Nissan is a resurgent global player, led by superstar CEO Carlos Ghosn, Renault clearly controls its alliance with Nissan with a 44% stake. Nissan has a 15% stake in Renault, which is mostly symbolic of Nissan's independence.
Renault and Nissan work together only when both sides benefit. Adding GM as a full partner would mean looking for win-win-win areas. Ideas like common engine production, platforms or hybrid development would save money in the future, said Nigel Griffiths, an analyst with Global Insight in London, but "GM needs a quicker fix than that."
A 20% investment in GM by Renault-Nissan, with the 9.9% held by investor Kirk Kerkorian's Tracinda Corp., would give those allies effective leadership of the company as the other big stockholders are unlikely to get into a nasty proxy fight.
But there is no guarantee that Renault-Nissan would stop there.
Ghosn may well aim to double the Renault-Nissan stake later on if GM turns around.
"Below 40%, an alliance is unstable," Ghosn reportedly told analysts in March when Nissan sold its 13% stake in Nissan Diesel Motor Co.
In May, at the Renault annual stockholders meeting, Ghosn said that depressed stock prices made it a good time to invest in another company.
He has been talking about widening the alliance since January's North American International Auto Show in Detroit. When the Dow Jones Newswire asked him about expanding the alliance, he answered, "Why not? We could use the same principles with more players."
The principles are those enumerated in Renault's statement last Friday after the Kerkorian surprise.
"Such an expansion would only be considered by the alliance if it were executed in the full spirit of the alliance, which is founded on trust, transparency, performance and the full respect for individual corporate and brand identity."
Renault Chairman Louis Schweitzer is credited with treating Nissan as a partner, not an acquisition.
That was in contrast to the clear takeovers of Dacia in Romania and Samsung Motors in Korea, which have been folded into Renault as subsidiaries.
While Renault's history provides uncertain clues as to its future strategy, it is clear that the company is no passive investor.
Gerald Meyers, a professor of management at the University of Michigan and the former chairman and chief executive at American Motors, said the fear at GM is that this is the beginning of a takeover.
He said Renault starts out with an alliance and before long, it's running the company.
Renault was a French automaker run by its engineer founder until the end of World War II. France accused Louis Renault of collaborating with the Germans and nationalized the company. (The government still owns 15% of the automaker.)
In the 1960s, Renault made its first overseas deal with American Motors, licensing the right to build the AMC Rambler in its Belgium factory for four years.
Then, in 1982, it bought AMC, only to sell it in 1987 to Chrysler.
"There is nothing in common with Renault's acquisition of AMC and Nissan," said Jean-Michel Prillieux, a consultant with Mavel SA in suburban Paris. "Renault bought 100% of AMC because it wanted to implant itself in North America."
With Nissan, Renault "wanted to establish an alliance of two powerful groups in parallel, one strong in Asia and the other strong in Europe."
Ghosn's strategy with GM, said Philippe Houchois, an automotive analyst at JP Morgan in London, is probably more oriented to Europe and China than North America.
In China, said Houchois, GM's partner SAIC has a better future than Dongfeng, Nissan's partner.
In Europe, he said, Renault would like to run Opel, GM's main European brand, because today "Renault has an extreme dependence on one brand. With two brands, it could operate like Peugeot Citroen and smooth out the cycles of the business, introducing the" Renault "Megane and" Opel "Astra several years apart."
An investment could pay off even if GM goes bankrupt in North America because Renault would be in a position to buy up the parts that will help it the most. And if GM recovers, the investment means more dividends for Renault.
"Given the level of risk, Kerkorian and Renault can run the show without the liability if something goes wrong," Houchois said. "And if the risk goes down, Ghosn will increase his investment."
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 07:18 PM   #17
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

From: http://au.news.yahoo.com//060707/19/zozr.html
_____________________________
Quote:
Saturday July 8, 05:34 AM
GM to enter alliance talks with Renault-Nissan

DETROIT, United States (AFP) - General Motors will enter "exploratory discussions" with Renault-Nissan on a potential alliance, the US automaker said following a board meeting.
GM cautioned the discussions were preliminary and non-binding and that implementing its massive restructuring program remained the automaker's "top priority."

French car maker Renault welcomed GM's decision to discuss the possible alliance first proposed last week by the US automaker's largest private shareholder, Kirk Kerkorian's Tracinda Corp.

"Following GM's board decision, we look forward to starting the discussion process soon," Renault said in a statement issued in Paris.

GM chief executive officer Rick Wagoner will lead the discussions and has already arranged to meet with Carlos Ghosn, the chief executive officer of Renault-Nissan, the American automaker said.

"We periodically receive interesting proposals and we owe it to the company and its shareholders to explore how they might work, and to objectively weigh the potential benefits and issues that each might present," Wagoner said in a statement.

"That is exactly what we recommended to the GM board in this specific case, and exactly what it has agreed we should do."

Wagoner said he contacted Ghosn when the alliance was suggested last Friday.

Renault said on Monday that it was ready to hold talks with GM to form a possible alliance between the companies "if General Motors makes the proposal".

But reports have circulated in Detroit that Wagoner and other GM top executives are opposed to the idea of a merger, despite the interest expressed by Renault-Nissan and the warm welcome issued by the stock market.

Some GM executives said privately this week that an alliance with Renault-Nissan may not be the best solution to the problems of either company.

In the past, GM has tried other alliances, notably with Fiat, and they have ended in failure. Even Jerry York, Kerkorian's principle automotive adviser, has been critical of the alliance strategy in the past.

Hints of caution were evident in Wagoner's statement.

"Given the complexity of any potential relationship, it has to be carefully considered on its merits before coming to any conclusion. We are committed to an objective and thorough review of that potential," he said.

"We will enter into discussions with the managements of Renault and Nissan with an open mind -- eager to hear their ideas of how an alliance between our companies might work to our mutual benefit."

While news of the potential alliance has given GM shares a massive boost this week, some analysts said it may not result in long-term gains.

Dennis Virag, head of the Automotive Consulting Group in Ann Arbor, Michigan, said GM's decision to study the proposal was prudent.

"They have a fiduciary duty to look at the proposal," he told AFP. "But in the end I don't see those two getting together. They're both troubled companies in the way. They both have significant internal problems they have to address before they take on outside issues."

General Motors remains focused on implementing a massive restructuring program that involves the shuttering of 12 plants and the elimination of 30,000 jobs.

Wagoner is battling to restructure the US car giant following its loss of 10.6 billion dollars last year.

So far, the plan is ahead of schedule as 35,000 union members have accepted early retirement packages, but GM continues to struggle with weak sales and a declining market share in its home market.

In the first six months of 2006, GM saw its sales fall by 12 percent while rival Toyota saw sales increase 9.8 percent.

Wagoner said the automaker has "made tremendous progress in implementing all the key initiatives."

But he cautioned that there are some "major items" that need to be resolved, including the restructuring of former subsidiary Delphi Corp and the sale of GM's lending arm, GMAC.

"So there's plenty more work to do to return our North American operations to sustained profitability. We remain focused on achieving this as quickly as possible," he said.

Wagoner's plan received strong support from the board.

"The board continues to fully support the company's North American turnaround strategy, and we encourage management to also continue its efforts to conclude a satisfactory resolution of the issues associated with the Delphi bankruptcy and to complete the pending GMAC transaction," said GM Director George Fisher.
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 07:19 PM   #18
samsonyuen
SSLL
 
samsonyuen's Avatar
 
Join Date: Sep 2003
Location: Canary Wharf > CityPlace
Posts: 8,495
Likes (Received): 278

From: http://www.mercurynews.com/mld/mercu...s/14995721.htm
__________________________________
Quote:
Posted on Sat, Jul. 08, 2006
GM's talk of alliance stirs political concerns
KEN THOMAS
Associated Press
WASHINGTON - General Motors Corp.'s talks over a potential alliance with two foreign automakers have Michigan political leaders talking. But the opening stages have left more questions than answers in a state with a struggling economy.

State and federal officials are cautiously assessing the potential GM alliance with Nissan Motor Co. and Renault SA and what it could mean for Michigan, where tens of thousands of workers are employed by GM.

GM's board on Friday authorized the world's largest automaker to begin assessing the potential benefits of an alliance, an initial step in a process that could take several months. The two foreign automakers have expressed interest in minority stakes that could mutually benefit the companies.

But with the state's economy sputtering and one of the nation's highest unemployment rates, the moves have created some unease in Michigan.

"I don't necessarily always believe that bigger is better and so we have to look at it very carefully. The bottom line is I'm the governor of Michigan, I want Michigan jobs to stay here," Gov. Jennifer Granholm said last week.

"If a partnership occurs with a company in another country, well that company is welcome to come to Michigan but I'm not interested in seeing Michigan jobs going somewhere else," she said.

Rep. John Dingell, D-Dearborn, long a champion of the auto industry in Congress, said too many questions remain to properly assess the potential impact of an alliance.

"Even experts in the industry will tell you you have to wait and see," Dingell said.

Dingell and other lawmakers said it would be difficult to predict how the discussions would be received in Congress, which was in recess last week. Opposition was stiff in Congress last spring against a now-abandoned Dubai ports deal.

During a news conference Friday in Chicago, President Bush was asked about his views of foreign-owned companies buying out U.S. technology companies, including those with military contracts.

Bush said: "On the broader scale, I have no problem with foreign capital buying U.S. companies; nor do I have a problem with U.S. companies buying foreign companies. That's what free trade is all about."

The auto industry is Michigan's largest employer and GM has long led the way, employing nearly 80,000 workers in Michigan through the end of last year. GM, Ford Motor Co., DaimlerChrysler AG's Chrysler Group and Delphi Corp. employed a combined 192,430 hourly and salaried workers in Michigan in December 2005, according to the Michigan Economic Development Corp.

David Cole, president of the Ann Arbor-based Center for Automotive Research, said that while the discussions are in their infancy, he did not see an alliance hurting the state. It could turn out more beneficial for GM than the other automakers.

"GM is at the threshold of a major turnaround and potentially, Renault and Nissan need GM more than vice versa," Cole said. He stressed that whatever makes GM stronger - alliance or no alliance - was the best deal for Michigan.

Detroit-based GM has been trying to reduce its size. The company recently announced that 35,000 hourly workers will retire or take buyouts, a move that will help it shutter a dozen plants by 2008.

The automaker has also negotiated health care concessions from the United Auto Workers union while working to resolve cost problems at Delphi, GM's largest parts supplier that the automaker spun off into a separate company in 1999. Delphi filed for Chapter 11 bankruptcy protection in October.

Rep. Joe Knollenberg, an Oakland County Republican who represents many Delphi workers, said he was concerned by the speed of the talks - investor Kirk Kerkorian first approached GM about the alliance over a week ago - and worried it could hinder a resolution for Delphi.

"A number of things are happening that indicate it might take a little more time before we actually solidify and resolve the Delphi situation," he said.

An unknown factor is what role the potential GM alliance could play in the fall elections. Republicans and gubernatorial candidate Dick DeVos contend Michigan is home to a single-state recession while other Midwest manufacturing states have prospered and have blamed Granholm for the economy.

State Republican party chairman Saul Anuzis said the GM talks fit into the overall dominance that economic issues have had on the race. Polls have shown jobs and the economy as top concenrs on voters' minds.

"It has now touched so many people in so many real ways in Michigan that it has gone beyond a statistic," Anuzis said of the state's high unemployment rates.

Granholm said her administration will be watching the GM talks "very closely. I do applaud the efforts of GM so far to restructure and doing what they need to do. I'll be curious to see what happens."
samsonyuen no está en línea   Reply With Quote
Old July 9th, 2006, 11:33 PM   #19
Cloudship
Registered User
 
Join Date: Jun 2005
Posts: 534
Likes (Received): 14

OK. We get the point.

Anyway, I really see this as more of Kirkorian's attempts to wrestle control away from Wagoner. The two companies are so different, have such different business philosophies, and have so little to gain in product from each other that a murger would be more diasterous than helpful.

What I still fail to understand is what Kirkorian sees as any benefit to the merger. Products wouldn't work - totally different philosophies and markets there. Besides, GMs problems stem from too much platform sharing, not from not enough. There's no benefit to market penetration - Renault has Nissan for penetration into the UUS market, and GM has Opel in Europe. And both companies go for different markets - GM primarily on price, Renault on technology and style. SO where is the logic behind this?
Cloudship no está en línea   Reply With Quote
Old July 11th, 2006, 04:57 PM   #20
boricuba
BANNED
 
Join Date: Jun 2006
Posts: 410
Likes (Received): 1

This move made by GM is very calculated. GM wants to still consolidated itself as the mayor car producer in the world. GM is very scare of Toyota which is growing to overtake GM car production soon. GM has mayor problems in the North american division where sales slip almost 30%. North America is GM biggest market and lucrative so it is very important for GM to Innovate. In the Rest of the world GM is in fact doing pretty good and above expectation they own stakes in many foreign car makers and own Subaru, Saab, Opel, Scania, Isuzu, Stakes in Mitsubishi etc.. GM is most interesting in Nissan which is own by Renault. Nissan U.S sales have grown 20% is one of the most succesful foreing car makers in the U.S because of great design and Innovation and Luxury line like Infinity which is second to toyotas Lexus. GM will go ahead with alliance with reanault in a couple of years when north america division is profitable again they will merge and own renault group including nissan.
boricuba no está en línea   Reply With Quote


Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 09:42 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Feedback Buttons provided by Advanced Post Thanks / Like v3.2.5 (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

Hosted by Blacksun, dedicated to this site too!
Forum server management by DaiTengu