• Jun 30, 2006
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


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  • 36 Comments
      • 8 Years Ago
      Why should it be surprising that GM is out of cash? Heck, if the American tiffany automaker (Ford) can be near broke, why not GM as well. I'd not buy any of their stock. They treat urge-based consumers like cheap ho's, slapping me about with ultra-premiums and no-deals allowed mentality.
      • 8 Years Ago
      hey Father Time, get with the times you old fart. F GM and F U.
      • 8 Years Ago
      30. hey Father Time, get with the times you old fart. F GM and F U.

      Posted at 9:43AM on Jul 1st 2006 by Amit 0 stars


      Guess what Amit, you have just secured your place in HELL. But don't worry, there's a nice big Toyota Club down there, lot's of members. WARNING! Don't sit to close to the fire, you could burn your rice cakes, and you wouldn't want to do that, now would you.

      • 8 Years Ago
      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?
      • 8 Years Ago
      So, Robert, any reasoning behind that at all? The #1 automaker going bust because Renault/Nissan won't buy their wares?

      Right.
      • 8 Years Ago
      "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...
      • 8 Years Ago
      Kinfd a funny all these negative posting toward Renault which not too long ago was a governmentown Co. and one of the pre requisite to work at Renault was to join either the CGT {a hard core communist worker union 75%of it's work force or the socialiste Union}
      No one barked at the very fact the French , yes the French invested almost 50% into Jeep to keep them from going under, in retrospect kind like the communist chinese keeping the us economy afloat}the French make outsrtanding car and have been making them for over 100 years, they have dominated every car racing they ever entered , granted yes GM has won many NASCAR races, but who knows about nascar side north American.
      Time and has been a long time for AAmerican auto maker to reaklze they were not the belly button of the automobile industry , as it is they are the toe nail, no inovation, no creativity in short they still recycle 1950 technology . Boeing understood that a long time ago....
      • 8 Years Ago
      GM has had a tough time with its partners in the past. If they do some good planning and put resources into keeping that partnership growing and productive for both parties it would be a great partnership.

      Nissan would be GMs door to a government connection and all the resources associated to that. Toyota will definately not want this .. another step to a level playing field.
      • 8 Years Ago
      Normally I don't stoop to personal attacks, but Rastus, you are a crude, homophobic MORON. General Motors certainly has its problems, but they are still the NUMBER ONE automaker in the world. Even though this may change in the near future, companies like Toyota and Honda are starting to have their fair share of quality problems, not to mention a crap load of vehicle recalls.

      So go on and show us how many ways you can describe homosexual sex. (You sure are descriptive, almost as if you have experienced it first hand - no pun intended). While you're getting on all fours, getting "f'd", taking like a man, and slurping your mama and your daddy, GM will continue to dominate the market with or without any alliances.

      A**hole!

      PS: GM has over 20 BILLION in cash reserves and 50 BILLION in credit and other cash sources. They have plenty of money.
      • 8 Years Ago
      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).
      • 8 Years Ago
      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.
      • 8 Years Ago
      I'm OK with it if Carlos Ghosn replaces Rick Wagoner.
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