• Jun 30, 2006

Kirk Kerkorian may have found a way to get Carlos Ghosn to work for General Motors -- merge Nissan/Renault with GM.

The billionaire investor and head of Tracinda Corp., a GM shareholder to the tune of 9.9 percent, sent GM chief Rick Wagoner a letter proposing "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." In a filing, Tracinda also indicated that it had been in contact with Ghosn regarding Nissan/Renault's interest in taking a minority stake in GM.

[Source: Associated Press via ABCnews.com]



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  • 32 Comments
      • 8 Years Ago
      Another marketing ploy by the BIG 3 to hide their dwindling sales and constant problems...see Ford and Chryslers 'EMPLOYEE PRICING' going on this month. Its a numbers game. When the accountants of Chrysler and Ford look at their books come August 1, they will see that the two companies moved alot of vehicles in July (ignoring that their profit was next to nothing, but, product moved...YAY!)
      Just like how for the weekend of July 4, likely for the first and only time this year, GM accountants will be able to (finnaly) say, 'Hey, our stocks went up!'
      • 8 Years Ago
      Solves a major management succession problem if Wagoner is dumped or just tired of the hassle of trying to turn GM around.

      Ghosn is the best in the business and he'd end up running the biggest car group in the world. Must be giving him some thought.

      I think Kerkorian's idea makes sense.
      • 8 Years Ago
      Hmmm, take one part top U.S. car manufacturer, add one part bottom tier Japanese company and a pinch of French engineering mastery, and what do you get? A Chevy LeCar? A Peugeot Impala? No thank you.

      GM is well on their way back to auto market domination so why in the world would they be looking for the quick out? Oh, right, so Kerkorian can cash out. Nevermind.
      • 8 Years Ago
      Nissan is stepping up the interior quality. You'll see that in the new Versa, Sentra, and Altima as well as in the refreshed Maxima and Quest.

      IIRC, the Renault-Nissan Alliance ranks fourth globally in terms of sales volume. Please correct me if I'm wrong. I'm not sure if it even counts though since the companies formed an "alliance" and not a merger.

      If GM joins the alliance, wouldn't it ensure that Toyota won't get the number one spot? ;)
      Dan Henke
      • 8 Years Ago
      There is absolutely no quality difference between GM and Toyota. The quality fable that these blogs represent is from heresay and assumptions. The same statements were made about Toyota in the '70's and '80's as are being made about GM recently. None of you are qualified to make the judgement unless you drive a Toyota and a GM car made in the same model year and make a direct comparison.
      • 8 Years Ago
      #12… if your car is German, then I understand your point of view. I have a 10-year-old Mercedes with over 150,000 miles that runs smoother at 80 mph that most "unit-bodies" do straight off the assembly line. That being said, I sell Toyotas and Buicks, among others, and the amount of "build problems" that my customers report to vary very little from brand to brand. The exception to this rule is the Avalon, which has significantly more problems than average. The reality is that there is very little difference between the best and the worst vehicles as far as problems per one hundred units goes. With that in mind, I still say drive a 10-year-old Buick, then a 10-year-old Toyota, then a 10 year old Mercedes and tell me which is head and shoulders above the other relatively similar two.
      • 8 Years Ago
      Ohh yeah this is going to solve all problems. Mergers always do. This is what you can call tackling problems head-on. Kerkorian, you're a genius! What an original idea! Let's merge two lame duck companies and see if we come up with a winner.
      • 8 Years Ago
      This reminds me of the movie "Wall Street" with Michael Douglas and Charlie Sheen.

      Stock price manipulation. That's all it is. If you look at GM's stock chart, there appears to have been a couple days of accumulation before this news came out. Then a big selloff this morning. See here:

      http://img.photobucket.com/albums/v615/natural_selection/GM-1.gif

      It must be nice to be able to make almost 10% on an investment in a few days just by leaking some "news".
      • 8 Years Ago
      gm will never join nissan,they might buy nissan but,will never join.
      • 8 Years Ago
      ^^Reading Pwns you!
      Nissan is gonna BUY 10% of GM, not the other way around.
      GM went to Nissan for help, not the other way around.
      From July 12 'Wall STreet Journal':
      "According to CEO Rick Wagoner, GM is completely open
      to a possible tie up with RENAULT and NISSAN...a proposal on joining an ALLIANCE."
      Key words are 'with' and 'aliance'
      • 8 Years Ago
      No, Kerkorian was not smoking crack when he came up with this idea. Look at GM’s stock this morning, it is up. Whether GM will follow through does not matter, Kerkorian already got what he wanted.
      • 8 Years Ago
      "but now that Toyota is starting to make exciting vehicles (FJ cruiser"

      It should read:

      "but now that Toyota is starting to make exciting *vehicle* (FJ cruiser)*

      Other than the kicks of off-roading, I do not find an SUV exciting. I wonder if the SUV will go down as the "minivan" of the late 90's/early 2000's?

      The FJ itself is pretty cool, not for me though, It looks as if it should be in an African Safari on the discovery channel, but thats not bad.
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