Analysts say that General Motors Chairman and CEO Rick Wagoner might be the biggest hurdle for Kirk Kerkorian to jump in making an alliance between GM and Renault-Nissan a reality. The big man in Detroit, analysts say, wants to get out of hot water on his own and with his own management team, not let Carlos Ghosn take all the credit when things look up for the world's biggest automaker.
Analysts (and Dieter Zetsche at a press conference last Friday) also indicate that Kerkorian's call is more indicative of Kerkorian and Jerry York's impatience with Wagoner, not a serious attempt to get the two companies to merge.
In Wagoner's defense, there may be good reason not to give up the reins, the biggest of which is the vote of confidence given to him by the board last April. While GM continues to lose market share and the SEC is a little wary of the company's accounting practices, Wagoner and his team can be credited with cutting costs, negotiating some concessions from the UAW, and turning out better product.
[Source: Detroit Free Press via the Tennessean]
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Reader Comments (Page 1 of 2)
Jeff Gilleran @ Jul 3rd 2006 6:18PM
Ahh... More Wagoner Pride.
Sometimes Rick you need a refreshed prospective on how to do what you havent been able to.
Get off your soapbox and realize that someone else (Carlos Ghosn) has a great deal of experience for auto business turnarounds than you do.
Personally, I think this a good idea.
This could mean the end of GM name of sorts if there is an actual merger (possibly if lines are redone and product is "redefined" under the Renault Nissan banners), but I also wonder if a merger will even happen if Rabid Rick decides his pride is more important than going bankrupt.
Its exactly this kind of attitude that put GM where it is today.
Pride=Arrogance.
Put down the drink, take your feet off the table and do what you are paid for Rick.
gbh @ Jul 3rd 2006 6:30PM
This is all smoke and mirrors.
The folks who have decided how the GM saga is going to play out for the public are putting on a show. The script is written, it may be changed a bit here and there, but there is no way GM can/will ever "come back" as it is.
This is an even more transparent hustle than Tyco or Enron or WorldComm, or....
chriseh @ Jul 3rd 2006 6:41PM
Quote "...turning out better products"
What products are we talking about here? Another round of giant SUV's?
Rob Lowe @ Jul 3rd 2006 6:51PM
The least worst choice and even that's impossible to achieve. With any luck that asteroid will descend on Detroit and settle the whole matter for everyone. Do the UAW get paid even in the case of non-existence. Someone will have to check the contract.
Father Time @ Jul 3rd 2006 6:54PM
Auto recalls;
Toyota 10.6%
GM 6.2%
Those of you that constantly conplain about GM's quality really should get a clue. Toyota is second to Ford in recalls and have far mor recalls than GM.
Mal Fuller @ Jul 3rd 2006 6:58PM
News flash! Ghosn's not interested.
john @ Jul 3rd 2006 7:15PM
Yea I have noticed Nissan is doing a great job with cars catching on fire and Renault how long has it been since you have even seen a Renault. Lets hiook up with these two. Kekorian better stick with banking and stay out of the car business.
Father Time @ Jul 3rd 2006 7:44PM
7. Yea I have noticed Nissan is doing a great job with cars catching on fire and Renault how long has it been since you have even seen a Renault. Lets hiook up with these two. Kekorian better stick with banking and stay out of the car business.
Posted at 7:15PM on Jul 3rd 2006 by john
I remember the Renault Dalphine, they were bad about the front wheels falling off while you were driving, killed a few people, that why Renault decided to pull it from the American market.
pd @ Jul 3rd 2006 7:46PM
This is nothing more than a stock PUMP&DUMP,for Kerkorian.Ghosn, is nothing but slash and burn cost cutter like CHAINSAW AL DUNLAP! Dont see this deal happening. Read about it in AUTOEXTREMIST.COM
Rastus @ Jul 3rd 2006 8:17PM
GM may well INDEEd be doing a better job at building "better" cars..
...but only in comparison to what they USED to build. You remember, (surely you do)...when "Oh, I'm getting UP there ...getting close to 80,000 miles...better tell Lois we need to start looking for a new car!!!"
But "better" is not good enough...not when Hyundai is building some mighty damn fine cars...right on American soil!
Everyone worth a lick knows the saga...GM sucks, Rick is pathetic, Greed wins out and everyone else loses (except, of course, Toyota and Honda...and even Hyundai).
But...have you noticed the tempo is picking up? We are receiving news 2-3 times per day regarding GM.
Yes...Absolutely!!...there is NO GM left...it is only a shell of its former self. This Really ought to be interesting to watch unfold. Recall how Delphi awarded everyone huge bonuses right before declaring bankruptcy? Keep an eye out for more of the same. It'll remind you of those "gone astray" solders at war...who destroy and LOOT everything they can get their hands on.
And you thought inner-city Detroit (with all their homeless, junkies, prostitutes, thiefs, etc.) is bad. What will happen next is anyone's guess...but you can be damn sure to know where their minds are:
Themselves!
They will become too preoccupied with themselves to even care one iota about their customers. I pity the fools who purchase their cars/trucks. You, as a customer, are just another "prop" in this house build of chop-sticks. When your long-lost Uncle comes a-calling ..weeping, pleading, uttering in his most apologetic manner...that he want some support...and that you ought to buy a GM for the gipper...tell him to go "F" himself.
GM, and in particular Rick (since you are a career GM employee): Has your RUDE AWAKENING come to light???
http://www.amazon.com/gp/product/0060973420/qid=1151971782/sr=1-4/ref=sr_1_4/002-3897643-1571215?s=books&v=glance&n=283155
Note the title: Rise, Fall, and Struggle!!! This being published in ...
...oh, ***1990***
Struggle, huh? Yeah, this 30 year "struggle" is, and HAS BEEN, pathetic to watch. Kind of like watching your parent, who once was full of life and happiness...turn to become an Alzheimer's patient...one who sh*ts himself and almost chokes on his own puke.
But...as Voltaire once said: It's all for the BEST!!! :)
Life without GM will be a much happier place. Chocolate will run from the fountains, Rainbows will terminate on Detroit, and all those junkies in Detroit will become respectible citizens...
...working away at a Toyota plant, building America's favorite family sedan...the Camry!!!
As an American, I am DISGUSTED at the SLOVENLY, unkepmt, Arrogant, Self-Centered, GREEDY people who run a supposedly "World Class" GM!
Rick, maybe you ought to buy a ranch out in Omaha somewhere...you will still have plenty of opportunity to shovel sh*t, so you won't miss anything.
Father Time @ Jul 3rd 2006 8:37PM
Rastus, why don't you get that mad monkey out of your ass, and while your at it, check in to a rehab.
Father Time @ Jul 3rd 2006 8:38PM
check that monkey in too.
iQuack @ Jul 3rd 2006 8:56PM
Linking GM with Renault/Nissan makes sense because their's too much overcapacity in auto manufacturing at GM. Sharing platforms among 3 companies would cut costs eventually, but it would take years even if the cultures of the 3 companies could be merged.
I'd like to see this happen but doubt that it will. Wagoner won't stand in the way if he's gets a golden parachute. He doesn't need the stress--maybe Ghosn thrives on stressful turn-around situations. He's certainly good at it.
Note that DCX still hasn't recovered from it's takeover of Chrysler and that deal was made over 7 years ago!
AR @ Jul 3rd 2006 8:58PM
You pull those figures out of your ass, Father Time? What exactly does Toyota's recall rates have to do with a possible Renault/Nissan/GM alliance? GM will never recapture it's former glory and that's something your American pride is gonna have to deal with.
Father Time @ Jul 3rd 2006 9:10PM
14. You pull those figures out of your ass, Father Time? What exactly does Toyota's recall rates have to do with a possible Renault/Nissan/GM alliance? GM will never recapture it's former glory and that's something your American pride is gonna have to deal with.
Posted at 8:58PM on Jul 3rd 2006 by AR
Forbes Magazine, asshole.
JGN @ Jul 3rd 2006 9:13PM
Wagoner would probably rock the boat for asking for $250 million in severance pay and a $5 million per year, with medical benefits. Not that it's huge for what failed executives get these days.
AR @ Jul 3rd 2006 9:26PM
Forbes Magazine, asshole.
My, what a broad vocabulary! Like I said before Einstein, what exactly do Toyota's recall rates have to do with the topic at hand? Did you just throw out those numbers to try and make yourself look smart?
hmmm @ Jul 3rd 2006 11:25PM
autoblog.com and a few other car auto sites would be soo much better if people could just post there thoughts positive or not, ABOUT the subject at hand, if you do not like what others say well too bad, get over it ! dont resort to severe name calling and F this or F that ! or you stupid asshole, how does the little 6th grade name calling contribute to this post about ricky wagoner ?
Yes conversations can be cool and fun but that rarely ever happens here, it resorts to very quick name calling and to belittle the posters comments, its quite easy to say F you and hit enter on the web, and be so harsh and rude, but if your like us old timers, we where grown up with manners, dignity and honor and prob would just think about stuff but not type it out for the world to see. Wish others had these same feelings instead of lowering themselves to others levels with name calling and being so immature !
hmmm @ Jul 4th 2006 1:33AM
Also please don't misunderstand me when i state that reading the comments section is half the fun of reading the article !
most times the comments can truly add to the value of the article, and then there are times when the comments degrade
all that was said in the post, then the angry children come out to play and be bullys and that wasn't fun in 6th grade and
surely is not fun now ! totally reminds me of MR. adams 6th grade science, he let all the shit fly and it always did, then MR. martin
who wouldnt put up with any bullcrap and all was peacefull ! autoblog.com needs to step in and state no more name calling
and have semi-positive things to add to the comments, you can agree and disagree without name calling, or keep your smart ass opinions and name calling to yourself ! Im quite sure most of you never heard your mom
say if you have nothing nice to say, dont say anything... thats quite obvious from the behavior around here !
LJC @ Jul 4th 2006 8:23AM
Posted at 1:33AM on Jul 4th 2006 by hmmm
#19Hmmm
I see your not shy about expressing your smartass opinions, maybe you should look at the poster and choose to read or not read, rather than doing exactly what you are warning others against.
Have a good 4th, hmmm