GM management to lay out objections to alliance

[Lexcar14]

It's from an WSJ article, but it's a pay site, so unable to read it. But that was the headline.

THANK GOD! The best decision Wagoner, Lutz, and Co., have made in a while! I think they need to go through the motions and consider the deal, but in the end, they will reject it. And I think the board will go ahead and reject it as well. It's the wrong time to consider an alliance like this. Besides, if GM starts making money sometime soon, they may be able to buy Nissan-Renault in a few years.

[BigPontiac]

Here's a reference to the article:

Article

GM execs to air arguments against alliance-WSJ

Thu Jul 6, 2006 12:53am ET

NEW YORK, July 6 (Reuters) - General Motors Corp.'s management plans to air arguments against a proposed three-way alliance with Nissan Motor Co. and Renault SA at a meeting with its board on Friday, The Wall Street Journal reported.

Citing people familiar with GM's plans, the Journal said Chairman and Chief Executive Rick Wagoner will not dismiss the proposed alliance outright, and he is expected to launch a due diligence review.

Wagoner and his management team intend to treat the alliance proposal as a hostile move against management, the sources said.

Some GM board members have expressed support for the proposed alliance, disclosed last Friday by GM's largest shareholder, billionaire Kirk Kerkorian, a person familiar with the situation told Reuters on Wednesday.

Wagoner is scheduled to meet with Nissan and Renault CEO Carlos Ghosn in Detroit in mid-July, the Reuters source said.

[ShadowDog]

How exactly would anyone be able to stop it if the purchase of the shares on the open trade was their (Nissan/Renault) final intention?

[Lexcar14]

Well that's why Rick is meeting with Ghosn. I think Ghosn will not pursue a hostile takeover, no matter how much Kerkorian wants too. Rick is going to talk with Ghosn and let him know he's not interested, and then hopefully Ghosn will let it die. I really can't fathom Ghosn spearheading a hostile takeover. It would cause way too much conflict and upheaval.

[thegriffon]

Of course GM and Renault already have an alliance, and there is no reason that couldn't be expanded to other projects (it already includes Nissan). E.g. replacements for the Astro and Safari Vans, the Express and Savanna, the Nissan Caravan and the rwd Renault Master in addition to the Vivaro/Trafic and fwd Movano/Master vans.

[Hudson]

It's from an WSJ article, but it's a pay site, so unable to read it.  But that was the headline. 

THANK GOD!  The best decision Wagoner, Lutz, and Co., have made in a while!  I think they need to go through the motions and consider the deal, but in the end, they will reject it.  And I think the board will go ahead and reject it as well.  It's the wrong time to consider an alliance like this.  Besides, if GM starts making money sometime soon, they may be able to buy Nissan-Renault in a few years. 

The assumption here is that GM has turned the corner, but I don't see that. GM still has a long way to go and it's about time GM stop acting like they rule the automotive industry, because that's not the case anymore. GM market share worldwide is still dropping and there's very little on the horizon that would show that it's going to stop.

My argument is that there's very little about GM that Renault/Nissan would want. Leadership, union, and image problems are just the beginning. Renault has made a fine turnaround in the past decade or two and Nissan's turnaround in the past few years has been amazing. While Ghosn may be the savior GM has been looking for, I don't see why he'd want to risk his reputation on such a potential flop.

I wouldn't be surprised if all this alliance talk was just a way for Kerkorian to boost his stock price so that he could dump his holdings and move on. I wouldn't fault him for it...everyone makes mistakes.

[aaaantoine]

Of course GM and Renault already have an alliance, and there is no reason that couldn't be expanded to other projects (it already includes Nissan). E.g. replacements for the Astro and Safari Vans, the Express and Savanna, the Nissan Caravan and the rwd Renault Master in addition to the Vivaro/Trafic and fwd Movano/Master vans.

Van replacements... For both mid AND full-size?

When are these replacements expected to launch?

[ehaase]

The assumption here is that GM has turned the corner, but I don't see that.

My argument is that there's very little about GM that Renault/Nissan would want.

I wouldn't be surprised if all this alliance talk was just a way for Kerkorian to boost his stock price so that he could dump his holdings and move on. I wouldn't fault him for it...everyone makes mistakes.

I agree entirely with Hudson. I can't think of one reason, unless Ghosn is a megalomaniac like some say, why Nissan & Renault would want to get involved with GM. There is no guarantee that the new Camaro and other Zeta projects, Lambda, Epislon II, etc. are going to be as successful as most of us hope, and I think it's going to be very difficult for GM to work through its image and legacy problems.

[Sixty8panther]

Strength in numbers!

[FAPTurbo]

Ghosn's a pretty smart dude. I think he'll probably let it die, but it may be a catalyst for co-operation between Nissan/Renault and GM, and that could help.

[thegriffon]

Van replacements... For both mid AND full-size?

When are these replacements expected to launch?

"there is no reason that couldn't be expanded to other projects (it already includes Nissan). E.g. replacements for …" does not mean that they are yet doing so or will be.

[Lexcar14]

I actually wouldn't be surprised to see G-N-R hook up some future projects that may save the companies money. I have no problem with that at all so long as shares don't swap.

[PontiacTechNJ]

Boy , that INFINITI sure smacks around Cadillac .

HAHA , French government , surely a CROWD PLEASER in the US

remember FREEDOM FRIES ??

[regfootball]

Well that's why Rick is meeting with Ghosn.  I think Ghosn will not pursue a hostile takeover, no matter how much Kerkorian wants too.  Rick is going to talk with Ghosn and let him know he's not interested, and then hopefully Ghosn will let it die.  I really can't fathom Ghosn spearheading a hostile takeover.  It would cause way too much conflict and upheaval.

maybe they'll share a brew, swap some blueprints for those nice VQ motors and have a laugh and a smile.

maybe nissan can donate the altima platform to GM for GM's future cars.

[regfootball]

Of course GM and Renault already have an alliance, and there is no reason that couldn't be expanded to other projects (it already includes Nissan). E.g. replacements for the Astro and Safari Vans, the Express and Savanna, the Nissan Caravan and the rwd Renault Master in addition to the Vivaro/Trafic and fwd Movano/Master vans.

Now I can dream of using my GM CARD for that Pontiac Quest van variant!!!! WOOHOO!!!! THERE IS GOD!

but only if they slap some cladding on the sides! YEAH BABY!!!!

[regfootball]

I agree entirely with Hudson.  I can't think of one reason, unless Ghosn is a megalomaniac like some say, why Nissan & Renault would want to get involved with GM.  There is no guarantee that the new Camaro and other Zeta projects, Lambda, Epislon II, etc. are going to be as successful as most of us hope, and I think it's going to be very difficult for GM to work through its image and legacy problems.

so Nissan can finally have the strength to b1tchlsap TOYOTA!!!

[regfootball]

I actually wouldn't be surprised to see G-N-R hook up some future projects that may save the companies money.  I have no problem with that at all so long as shares don't swap.

G-N-R welcome to the JUNGLE BABY!!!!!!! It'll bring you DOWN!!!!

[Guest buickman]

Today's Detroit News:

GM is being advised by investment firms Goldman Sachs and Morgan Stanley, say people familiar with the matter.

With billionaire shareholder Kirk Kerkorian demanding action, GM's directors likely will form a committee today to explore the possibility of GM entering into a partnership with Renault-Nissan.

_________________________________

H. Ross Perot:

"Where I come from, when you see a snake, you kill it. At GM the first thing you do is form a committee on snakes, next you hire a consultant, then you talk about it for a year."

Buickman

[I hope GMRULES again]

Today's Detroit News:

GM is being advised by investment firms Goldman Sachs and Morgan Stanley, say people familiar with the matter.

With billionaire shareholder Kirk Kerkorian demanding action, GM's directors likely will form a committee today to explore the possibility of GM entering into a partnership with Renault-Nissan.

_________________________________

H. Ross Perot:

"Where I come from, when you see a snake, you kill it. At GM the first thing you do is form a committee on snakes, next you hire a consultant, then you talk about it for a year."

Buickman

163720[/snapback]

I remember that line from Ross Perot. I was just a wee lad back then. Too bad Roger paid him to take a hike, he would of helped fix the General 20 yrs ago.