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GM green-lights Nissan-Renault discussions

As expected, the GM board has given their blessings to have preliminary talks regarding the possibility of a 3-way Nissan-Renault-GM alliance. I mean, did you really expect them to reject this?

Snippet:  In a statement issued after a conference call, GM's board said it had put Wagoner in charge of evaluating the potential benefits of a tie-up with Nissan and Renault, which are both headed by Chief Executive Carlos Ghosn.

Kerkorian still not happy...

Snippet:  But in an immediate sign of continued tension with Wagoner, billionaire investor Kirk Kerkorian called for the review to be entrusted to a board committee with access to outside advisors, a statement issued by his firm, Tracinda Corp., said...


More info here and here.

Prediction: Down the road, when all the exploring is done, GM (Wagoner!) will find some way to reject this alliance. For Wagoner to accept this alliance would be like shooting himself in the foot. It wouldn't be too long before he is out the door looking in, and that GM would indeed become Ghosn Motors.

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4 Comments

mercedesman1 says:

07:06 PM, 07/ 8/06

What are they planning on getting from this alliance like what are they planning.

rsholland says:

06:42 AM, 07/ 9/06

Not sure. That's what these discussions are about. Early reports suggest that they may be able to save money on purchasing parts, and on environmental and safety engineering by pooling their resources. Beyond that, who knows...

ateixeira says:

10:54 AM, 07/10/06

I don't see this partnership helping either side much. It might just be a way for a Billionaire to exert his power and put pressure on Wagoner.

rsholland says:

11:50 AM, 07/10/06

Kerkorian is 89. How much longer is he going to be around? I think it's time for him to retire.

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