Nissan responds to GM alliance talk
Here's Nissan's official response to the flurry of speculation caused by Tracinda Corp., Kirk Kerkorian's investment company, when it sent a letter to General Motors suggesting the automaker immediately explore joining Nissan and Renault's alliance. Issued by Nissan Motor Co., Ltd., Tokyo, Japan:
NISSAN STATEMENT
The Renault-Nissan Alliance is an open partnership, which has never been restricted to two partners. Under the right circumstances and with the appropriate partners, the Alliance could be expanded further. 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.
Mr.Ghosn, President and CEO of Renault and Nissan was approached by Mr.Kerkorian, Mr.York and representatives of Tracinda Corporation to assess the merits of GM joining the Renault Nissan Alliance.
At this point, it is necessary that 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.
While Nissan certainly seems receptive to the idea of showing GM the secret handshake, it makes no mention of Renault and Nissan being interested in purchasing a minority stake in the General.
At the close of trading today GM ended up $2.35 (8.56%) at $29.79. For fun, we snagged a copy of the exact letter Tracinda sent to GM today. Read the whole thing (it's pretty short) after the jump.
[Source: The Detroit News]
Letter from Tracinda Corp. to GM:
Dear Mr. Wagoner:
It is our understanding that Renault S.A. ("Renault") and Nissan Motor Co., Ltd. ("Nissan") are receptive to the concept of including General Motors
Corporation ("General Motors") in their partnership−alliance and purchasing from General Motors a significant minority interest in the Company.
The Renault−Nissan partnership−alliance has created tremendous engineering, manufacturing and marketing synergies, resulting in substantial benefits and cost savings to both Renault and Nissan.
We believe that participating in a global partnership−alliance with Renault and Nissan could enable General Motors to realize substantial synergies and cost savings and thereby greatly benefit the Company and enhance shareholder value. Accordingly, we urge the Board of Directors to form a committee to immediately and fully explore this opportunity together with management.
Sincerely,
TRACINDA CORPORATION
Reader Comments (Page 1 of 3)
Robert Farago 7:18PM (6/30/2006)
There is only one reason this is happening: cash. GM is out of cash.
Kirk is looking to sell Nissan/Renault something, anything to keep GM afloat. If this deal doesn't happen, GM is going down. And soon.
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skaz 7:22PM (6/30/2006)
So, Robert, any reasoning behind that at all? The #1 automaker going bust because Renault/Nissan won't buy their wares?
Right.
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mr 7:36PM (6/30/2006)
"The Renault-Nissan Alliance is an open partnership, which has never been restricted to two partners."
I brought this up with the missus once and she was less than receptive.
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Ben 7:45PM (6/30/2006)
that's actually LIGHTNING FAST response time
good job Renault - Nissan.
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bgdc 7:49PM (6/30/2006)
I'd love it...GM - the all american car company - working with French and Japanese partners. ROFL That'd leave Ford all alone in the world. How long before Toyota or Honda hook up with them?
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Automatica 7:53PM (6/30/2006)
Four years ago I was sitting with the director of the GM communications group at the RenCen and I mentioned that it would be more appropriate if GM changed their name from General to Global Motors.
How prophetic...
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Stphane Dumas 8:10PM (6/30/2006)
Automatica
speaking of "Global Motors", Iacocca mentionned once in his autobiography, if I remember correctly, then there will be more then one "Global Motors" (the 1st "Global Motors" he taught was a amalgation of Ford-Peugeot-Chrysler-Mazda-Mitsubishi then, another one with VW-Audi as the core, and some of the others Japanese carmakers)
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Sheniferous 8:22PM (6/30/2006)
Yea... Ford left all alone... with Mazda and Volvo...
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Robert 8:24PM (6/30/2006)
Global Motors was the name of the company that imported the Yugo in 1985... and the name Iacocca used for his electric bike company. Talk about great provenance.
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Rick Watts 8:28PM (6/30/2006)
Nissan has it's own problems with slow moving product and quality issues. Plus, they are betting the house on new product just like GM. At least, GM has an exciting product pipeline and quality that is improving. GM and Toyota or Honda might be a better fit. GM and Toyota could dominate the world!
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bgdc 8:31PM (6/30/2006)
shen - Ford owns Mazda, PAG, et al. They're just hangers-on that bring very little to keep Ford afloat.
Ford eventually will crumble - bankruptcy is looming for the big two - and it will be the japanese powerhouses who will save the day.
Mostly I worry what will happen to the few indies like BMW and Porsche (who now own ~20% of VW AG so they may one day scoop up a majority of VW AG).
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Tom In CTown 8:52PM (6/30/2006)
A General Motors/ Nissan/ Renault Alliance? Do we really need to bring up the Renault Alliance at this time? Bringing that car back could kill GM for good!
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JSFORBES 9:06PM (6/30/2006)
I have a question and I have yet to see an article talk about this in depth:
What happens when GM or Ford do go under? Will the brands just disappear or will they be snapped up by other parties?
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Doogs 9:13PM (6/30/2006)
"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...the full respect for individual corporate and brand identity."
SMACK!
Maybe if GM respected brand identity, they wouldn't be in the mess they're in today...
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Jerome Nicholson 9:36PM (6/30/2006)
I'm OK with it if Carlos Ghosn replaces Rick Wagoner.
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Doug 10:32PM (6/30/2006)
All of this wont matter the slightest bit once the Chinese start exporting their cars throught the world. They are talking about cars around $10,000 with the quality of the old GM, like a Buick. But Buicks are well over $25,000. The quality will catch up with the Chinese products. No current car company is safe. No one.
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laserwizard 10:33PM (6/30/2006)
Top Ten Results of the GM-Nissan-Renault Alliance
10. Two new divisions to shove a CSV onto.
9. Cadillac will become indignant that they won't be making the ugliest cars in GM.
8. Robert Lutz will have two more companies to screw up.
7. Renault will get a Corvette spinoff.
6. Saab who?
5. GM workers will want to adopt French work rules - work 1 day, get 13 days vacation every 2 weeks.
4. With more to manage, Robert Lutz will have a bigger peter principle.
3. Chevrolet will get to cut a huge hole in the roof of a Cobalt, add a sliding canvas insert, and rebadge it as a Renault.
2. Nissan gets a rebadged Monte Carlo and enters NASCAR to race against Toyota.
1. Misery loves company.
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Seto 10:43PM (6/30/2006)
"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."
haha, i really like this response, especially the last line... sounds like an indirect blow to GM's badge engineering under many of its brands.
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krogar 11:47PM (6/30/2006)
You forgot, the Hyundai/Kia group has just passed Nissan for worldwide sale, to be #6(and also ahead of Honda).
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mangum 11:47PM (6/30/2006)
Sort of like a "fat chance" response from Nissan/Renault. As if they would gain anything from partnering with such a bankrupt/dead wood/lo-tech turd.
GM's management assigns no value to "trust, transparency, performance and the full respect for individual corporate and brand identity".
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