Nissan, Renault Want GM Stake

[BigPontiac]

AP

Tracinda: Nissan, Renault Want GM Stake

Friday June 30, 9:29 am ET

Renault and Nissan Want Stake in GM, According to Investor Kerkorian's Tracinda Corp.

NEW YORK (AP) -- Automakers Renault SA and Nissan Motor Co. are interested in purchasing a significant stake in General Motors Corp. and including the struggling automaker in their alliance, according to a letter sent Friday to GM from billionaire investor Kirk Kerkorian's investment company.

Shares of GM jumped $3.22, or 11.7 percent, to $30.66 in pre-market trading, having closed Thursday at $27.44 on the NYSE.

The letter from Kerkorian's investment company, Tracinda Corp., said it believes Renault and Nissan are receptive to the idea of including General Motors in their partnership and purchasing "a significant minority interest" in the Detroit automaker.

Tracinda, a large minority shareholder in GM, said the existing French-Japanese partnership has created "tremendous engineering, manufacturing and marketing synergies, resulting in substantial benefits and cost savings to both Renault and Nissan."

Tracinda urged GM's board to form a committee to "immediately and fully explore this opportunity together with management," as it feels the alliance could help GM "realize substantial synergies and cost savings and thereby greatly benefit the company and enhance shareholder value."

The letter also indicates that Tracinda has reached out to Renault Chairman Louis Schweitzer and Nissan Chairman Carlos Ghosn to alert them to its contact with General Motors.

In a separate letter advising Schweitzer and Ghosn of the GM correspondence, Tracinda noted that "as we recently discussed with Mr. Ghosn, Tracinda believes that General Motors, Renault and Nissan should explore a three-company, partnership-based alliance."

http://biz.yahoo.com/ap/060630/tracinda_gm...iance.html?.v=1

[aaaantoine]

Hmm...

I think the important question here is - would this be to the benefit of General Motors?

*puts on helmet*

[BigPontiac]

Renault no comment on GM tie-up proposal

Fri Jun 30, 2006 9:33am ET

PARIS, June 30 (Reuters) - Renault (RENA.PA: Quote, Profile, Research) declined comment on Friday on the notion of a three-way tie-up with General Motors and Renault's cross-shareholding partner Nissan.

One of the largest investors in General Motors Corp. (GM.N: Quote, Profile, Research) earlier urged the world's largest automaker to consider a three-way partnership with Nissan (7201.T: Quote, Profile, Research) and Renault.

In a letter to GM Chief Executive Rick Wagoner, Tracinda Corp., the investment arm for billionaire investor Kirk Kerkorian, suggested the automaker form a committee to "immediately and fully explore" the possibility of a partnership under which Nissan and Renault would buy a "significant minority interest" in GM.

A Renault spokeswoman said, "We have no comment".

Article

(The link was a little picky and required IE to access)

Full URL: http://us.rd.yahoo.com/finance/external/re...ac006599_newsml

[BigPontiac]

Nissan declines comment on GM tie-up proposal

Fri Jun 30, 2006 9:46am ET

DETROIT, June 30 (Reuters) - Nissan Motor Co (7201.T: Quote, Profile, Research) said on Friday it had no comment on the possibility of a three-way tie-up with General Motors Corp.(GM.N: Quote, Profile, Research) and Renault (RENA.PA: Quote, Profile, Research).

One of the largest investors in GM, billionaire investor Kirk Kerkorian's Tracinda Corp., has urged the world's largest automaker to consider a three-way partnership with Nissan and France's Renault.

In a letter to GM Chief Executive Rick Wagoner, Tracinda suggested the automaker form a committee to "immediately and fully explore" the possibility of a partnership under which Nissan and Renault would buy a "significant minority interest" in GM.

Nissan spokesman Simon Sproule said: "At this stage Nissan would not have a comment."

Article

(Another IE required links)

Full URL: http://yahoo.reuters.com/news/articlehybri...omktNews&rpc=44

[the_yellow_dart]

If I had to see anyone buy out GM (I realize this is not what' happening here), I would like it to be Renault-Nissan.

[ToniCipriani]

[sarcasm]I can now get a Nissan Skyline, without the guilt of betraying GM![/sarcasm]

[Newbiewar]

Nissan makes horrible cars, i would really not like to see this happen...

[Spike]

I think that a reason the Renault and Nissan relationship works is before they really do not compete too much in the marketplace. Nissan sells vehicles mainly in North America, Japan, and “others” markets. While Renault sells their cars basically in Europe. Nissan sold just fewer than 16% of their total sales in Europe in their last fiscal year, while Renault sold over 80% of their total volume in Europe.

General Motors sells vehicles worldwide. I think that there would be too much brand overlap between Renault/Nissan and GM in especially North American and Europe. How effective are the added efficiencies if very similar products are sold from different brands. For this relationship to be successful all parties would need to drastically cut and differentiate their product offerings.

GM’s China inroads would be great for Renault/Nissan.

http://www.renault.com/renault_com/en/imag...1120-353236.pdf

http://www.nissan-global.com/EN/DOCUMENT/P.../ar2004e_36.pdf

[evok]

Nissan makes horrible cars, i would really not like to see this happen...

Some might argue that GM's product are even more horrible.

[longtooth]

Hmm...

I think the important question here is - would this be to the benefit of General Motors?

*puts on helmet*

How about, can this be worked to the detriment of the UA-stinkin'-W?

Plus, in about 5 years or so, here comes one hell of a funky Pick Up Truck.

Edited June 30, 2006 by longtooth

[GEESIXER]

Some might argue that GM's product are even more horrible.

this may be true but still, at the same time two negatives do not make a positive.

if nissan makes a crapy car and gm makes a crapy car, they would just make crapy cars together. not a very good solution to the problem.

[VenSeattle]

Nissan makes horrible cars, i would really not like to see this happen...

No they don't... Nissan "brand" interiors still need to improve, but Nissans are pretty good.

Infinitis are great vehicles. It's the only Japanese brand I prefer. (In fact, if I leave Buick, it'll be to head for an Infiniti dealer near by)

I'd love to see this happen. Can Carlos Ghosn manage three companies?

[evok]

this may be true but still, at the same time two negatives do not make a positive.

if nissan makes a crapy car and gm makes a crapy car, they would just make crapy cars together.        not a very good solution to the problem.

This is a game of chess.

[Drew Dowdell]

GM-Nissan-Renault would put the combined company way out in front of Toyota.

[Mr.Krinkle]

if i recall correctly in math the product of two negative integers can be a positive number.

this is more about a game of chess, though.

must be lots and lots of paperwork to figure this one out.

[PurdueGuy]

I don't see this happening - GM just largely got out of several partnerships (Subaru, Suzuki). I'm sure GM has plenty of technology & such that Nissan/Renault would like, but is the reverse true?

[Spike]

Zetshe's interesting perspective...

AUBURN HILLS, Mich., June 30 (Reuters) - DaimlerChrysler AG (DCXGn.DE: Quote, Profile, Research) Chief Executive Dieter Zetsche on Friday said it was uncertain that the proposed tie-up between General Motors Corp (GM.N: Quote, Profile, Research) Nissan Motor Co. (7201.T: Quote, Profile, Research) and Renault SA would happen.

Zetsche, speaking to reporters at Chrysler's headquarters, questioned the motive of billionaire investor Kirk Kerkorian in making the proposal public, which triggered a sharp rise in GM shares on Friday.

"Sometimes the news in itself is already the purpose not necessarily leading to a result," Zetsche said. "Consolidation is one theme in mature industries. I would stay put and listen for further developments."

http://today.reuters.com/stocks/QuoteCompa...-Jun-2006+RTRS;

[CaddyXLR-V]

No they don't... Nissan "brand" interiors still need to improve, but Nissans are pretty good.

Infinitis are great vehicles. It's the only Japanese brand I prefer. (In fact, if I leave Buick, it'll be to head for an Infiniti dealer near by)

I'd love to see this happen. Can Carlos Ghosn manage three companies?

I agree. I would rather it be with Nissan than with any other Japanese company.

[Sixty8panther]

If I had to see anyone buy out GM (I realize this is not what' happening here), I would like it to be Renault-Nissan.

I'm in full agreement.

Better than Honda, better than Toyota, better than VW/Audi...

-----

GM-Nissan-Renault would put the combined company way out in front of Toyota.

YES!

Edited June 30, 2006 by Sixty8panther

[Guest Josh]

Didn't Dollinger say that there would be somebody out there that would pick GM up for pennies?

Very, very interesting.

[FAPTurbo]

Weird coincidence that when Kerk says that Nissan-Renault want a stake in GM, that the share price rises...

Maybe Kerk wants more bang for his buck and could be looking to try and sell some shares. I hope it isn't true, but if it is, it goes to show how nutty the markets are, and how one nutbar can influence them.

I doubt I see it happening. GM is still a huge company, and the idea that a Japanese and FRENCH company want in really doesn't seem right.

[CaddyXLR-V]

Didn't Dollinger say that there would be somebody out there that would pick GM up for pennies?

Very, very interesting.

It's not like they are buying the whole company, the articles state it would be a minority stake. Their sales numbers wouldn't even be counted together if it does happen.

Does that mean GM would be buying a stake in Nissan as well?

Edited June 30, 2006 by CaddyXLR-V

[evok]

Didn't Dollinger say that there would be somebody out there that would pick GM up for pennies?

HuH - I think you confuse master obvious with any "body" with half a brain that can look up stock quotes on yahoo.

[I hope GMRULES again]

Didn't Dollinger say that there would be somebody out there that would pick GM up for pennies?

Very, very interesting.

Yes I guess we'll be hearing from him shortly.

Voulez vous une compagnie Francais achete un interet dans GM? I can see the headlines now. FRENCH COMPANY BUYS INTEREST IN GM.

I don't see this helping either of them in North America cause they are both full line manufacturers, maybe in other markets or with things like hybrids where they could share technology.

Edited June 30, 2006 by I hope GMRULES again

[Guest Josh]

HuH -  I think you confuse master obvious with any "body" with half a brain that can look up stock quotes on yahoo.

<{POST_SNAPBACK}>

As confused as I may be as you claim...one thing I am certain on is I am sick of reading your bull&#036;h&#33; day in and day out like some are sick of reading Dollingers.

[sciguy_0504]

It has its good and bad points. The best thing is the pooling of resources - designers, engineers, parts, etc. to lower costs.

[Mr.Krinkle]

im detecting a little sass here, dollinger has said a lot of things and i wouldnt canonize him or a declare him a prophet.

everyone benefits from a deal like this.

[evok]

As confused as I may be as you claim...one thing I am certain on is I am sick of reading your bull&#036;h&#33; day in and day out like some are sick of reading Dollingers.

There is a simple solution to that Josh - Don't read my posts.

If you find my posts that offensive there is an ignore feature on CG.

PS: See my post #35 below in this tread. You might learn a thing or two instead of just being a big mouth.

Edited June 30, 2006 by evok

[Guest YellowJacket894]

I, for one, wouldn't mind seeing Nissan-Renault teaming up with GM. The result of such could be to the benefit of all three companies, not just GM. And we could see Carlos Ghosen getting a high-ranking seat at GM HQ. "Le Cost Cutter" could probably rearrange and tighten the GM Powertrain Portfolio (an area that annoys me in one area or another) by getting rid of some of the older technology setting around and making the six-speed auto standard across all lines and having maybe 2 four-cylinder engines, 2 six-cylinder engines, and maybe 3 or 4 eight-cylinder engines.

If it goes through, it'll be something to watch, to say the least.

Edited June 30, 2006 by YellowJacket894

[ugk]

How would GM benefit from this?

[BigPontiac]

GM's press release.

FOR RELEASE: 2006-06-30

General Motors Statement Regarding Tracinda's Filing

DETROIT - General Motors Corp. (NYSE: GM) has received no offer or proposal from Renault/Nissan with respect to its participating in the Renault/Nissan Alliance, as suggested in the 13-D Filing made today by the Tracinda Corporation. The Tracinda request will be taken under advisement by the GM Board of Directors. At this time, we have no further comment.

Source: GM

[I hope GMRULES again]

I kinda feel bad for Rick Wagoner I don't know how that guy sleeps at night. Just when he thought it was safe to hop into his 07 Escalade and head for his country place to celebrate the 4th of July weekend captain Kirk drops this bombshell on him.

[BigPontiac]

Nissan's Ghosn expressed interest in GM stake-source

Fri Jun 30, 2006 1:00pm ET

DETROIT, June 30 (Reuters) - Nissan Motor Co. Ltd. and Renault SA head Carlos Ghosn expressed interest in acquiring a minority stake of up to 20 percent in General Motors Corp. (GM.N: Quote, Profile, Research) at a dinner with billionaire investor Kirk Kerkorian about ten days ago, a source familiar with the situation said on Friday.

The source said the dinner took place in Nashville, Tennessee, the home of Nissan's new U.S. headquarters. Ghosn expressed interest in acquiring a stake of up to 10 percent each for Nissan and Renault, the person said.

Article

[Sixty8panther]

I kinda feel bad for Rick Wagoner I don't know how that guy sleeps at night. Just when he thought it was safe to hop into his  07 Escalade and head for his country place to celebrate the 4th of July weekend captain Kirk drops this bombshell on him.

I know I feel bad too... people who make seven figures while their

employer is loosing billions break my heart. Poor Ricky. :AH-HA_wink:

[evok]

Regardless of the the potential "Global Motors" deal that reporters and the journalist are speculating on. The underlying solution may be very simple.

- The letters filed by GM from Tracinda with the proposal came from Tracinda and not Renault/Nissan.

The Tracinda letter to Renault/Nissan state, 'As we recently discussed with Mr. Ghosn, Tracinda believes (key word) that GM, Renault, and Nissa should (Tracinda opinion) explore a three-company partnership-based alliance.

This is Tracinda's opinion, not that of Nissan or Renault.

Now why would Tracinda propose such a partnership PUBLICALLY?

The simple solution is most likely the correct one. Kerkorian is an 80+ year old man and wants out of GM stock. The quick buck he envisioned or whatever his initial intentions did not come to fuition.

Remember Kerkorian wanted to buyout Chrysler in the early 90's. I am sure his intentions have not changed with age! Remember the term "unlocking shareholder value"? Shareholder refers to Mr. Kerkorian.

By issuing the letter, Tracinda drives up the price of the stock as we have seen.

Tracinda already has taken a tax loss on shares sold at a loss which can be carried over for the next few years.

Tracinda bought some of those shares back at the low $20s.

Tracinda initially purchased their shares at the low 30's.

Tracinda can not unload there shares on the open market without an SEC filing notifing the public and thus speculation.

Most likely that speculation will be negative driving the share price down further.

So how does Tracinda unload their 10% in the company.

Sell to either Nissan or Renault.

That is the chess game.

Now the question are?

Does York have the support on the BOD?

Does Wagoner have the balls to take on Kirk as Eaton did.

Or is there enough sense in the concept of Global Motors that GM is aggreeable to the proposal.

Either way, it appears Kirk wants out and his money to boot.

Suffice it to say - You will not hear this in the press.

Edited June 30, 2006 by evok

[Lexcar14]

I would only like this deal if GM bought a stake in Nissan-Renault, and vice versa. Then both companies would have a seat on the other's boards. This would make it the most equitable.

[daves87rs]

I don't really see this happening-for two reasons:

1. The outrage in the Motor city. People who know Ghosen knows he will do whatever it takes..whether it means cleaning house downtown. I'm not sure if GM could handle changes overnight. And for those who think Ghosen won't-he never steps into a deal that He isn't going to have some control over...

2. Who know be dumb enough to team with a struggling automaker? In time, there could be a good chance that one could just buy GM....(see DCX..)...

I could see this as a possible option with Ford-but it would make a mess with GM.

Could it be possible? Yes? Likely? Hmmm.....

GM doesn't like to be bossed around. With two people telling them....

[daves87rs]

Regardless of the the potential "Global Motors" deal that reporters and the journalist are speculating on. The underlying solution may be very simple.

- The letters filed by GM from Tracinda with the proposal came from Tracinda and not Renault/Nissan.

The Tracinda letter to Renault/Nissan state, 'As we recently discussed with Mr. Ghosn, Tracinda believes (key word) that GM, Renault, and Nissa should (Tracinda opinion) explore a three-company partnership-based alliance.

This is Tracinda's opinion, not that of Nissan or Renault.

Now why would Tracinda propose such a partnership PUBLICALLY?

The simple solution is most likely the correct one.  Kerkorian is an 80+ year old man and wants out of GM stock.  The quick buck he envisioned or whatever his initial intentions did not come to fuition.

Remember Kerkorian wanted to buyout Chrysler in the early 90's.  I am sure his intentions have not changed with age!  Remember the term "unlocking shareholder value"?  Shareholder refers to Mr. Kerkorian.

By issuing the letter, Tracinda drives up the price of the stock as we have seen.

Tracinda already has taken a tax loss on shares sold at a loss which can be carried over for the next few years.

Tracinda bought some of those shares back at the low $20s.

Tracinda initially purchased their shares at the low 30's.

Tracinda can not unload there shares on the open market without an SEC filing notifing the public and thus speculation.

Most likely that speculation will be negative driving the share price down further.

So how does Tracinda unload their 10% in the company.

Sell to either Nissan or Renault.

That is the chess game.

Now the question are?

Does York have the support on the BOD?

Does Wagoner have the balls to take on Kirk as Eaton did.

Or is there enough sense in the concept of Global Motors that GM is aggreeable to the proposal.

Either way, it appears Kirk wants out and his money to boot.

Suffice it to say - You will not hear this in the press.

While that could be true- I doubt Kirk is going to get some backing on the deal...

And GM would be dumb not to make light of it...

[daves87rs]

Weird coincidence that when Kerk says that Nissan-Renault want a stake in GM, that the share price rises...

Maybe Kerk wants more bang for his buck and could be looking to try and sell some shares. I hope it isn't true, but if it is, it goes to show how nutty the markets are, and how one nutbar can influence them.

I doubt I see it happening. GM is still a huge company, and the idea that a Japanese and FRENCH company want in really doesn't seem right.

Stirring interest is not a bad idea...if he could sell...

[Brandon Lutz]

Regardless of the the potential "Global Motors" deal that reporters and the journalist are speculating on. The underlying solution may be very simple.

- The letters filed by GM from Tracinda with the proposal came from Tracinda and not Renault/Nissan.

The Tracinda letter to Renault/Nissan state, 'As we recently discussed with Mr. Ghosn, Tracinda believes (key word) that GM, Renault, and Nissa should (Tracinda opinion) explore a three-company partnership-based alliance.

This is Tracinda's opinion, not that of Nissan or Renault.

Now why would Tracinda propose such a partnership PUBLICALLY?

The simple solution is most likely the correct one.  Kerkorian is an 80+ year old man and wants out of GM stock.  The quick buck he envisioned or whatever his initial intentions did not come to fuition.

Remember Kerkorian wanted to buyout Chrysler in the early 90's.  I am sure his intentions have not changed with age!  Remember the term "unlocking shareholder value"?  Shareholder refers to Mr. Kerkorian.

By issuing the letter, Tracinda drives up the price of the stock as we have seen.

Tracinda already has taken a tax loss on shares sold at a loss which can be carried over for the next few years.

Tracinda bought some of those shares back at the low $20s.

Tracinda initially purchased their shares at the low 30's.

Tracinda can not unload there shares on the open market without an SEC filing notifing the public and thus speculation.

Most likely that speculation will be negative driving the share price down further.

So how does Tracinda unload their 10% in the company.

Sell to either Nissan or Renault.

That is the chess game.

Now the question are?

Does York have the support on the BOD?

Does Wagoner have the balls to take on Kirk as Eaton did.

Or is there enough sense in the concept of Global Motors that GM is aggreeable to the proposal.

Either way, it appears Kirk wants out and his money to boot.

Suffice it to say - You will not hear this in the press.

I was thinking something similar, just couldnt figure out how to put in words like that. Wasn't a fan of Kirk when he came in and not a fan of his now.

[Petra]

Ghosn won't accept offers directly from GM, so I doubt that he would accept an offer from Tracinda. I agree with evok: this is likely just a move on Kirkorian's part to drive up the value of GM stock so he can unload it.

[evok]

STATE STREET CO... 86,397,253

CAPITAL RESEARC... 80,113,400

BRANDES INVESTM... 61,926,733

SOUTHEASTERN AS... 40,621,300

BARCLAYS GLOBAL... 18,772,804

Tracinda ...... app. 61million shares

That is what Kirk is up against unless he can get a back door deal as I have outlined.

Make no mistake of Kirks intentions.

Apparently he may not have gotten what he wanted from the GMAC deal as was outlined as a possibility by Hogan_Heros a while back.

[evok]

Ghosn won't accept offers directly from GM, so I doubt that he would accept an offer from Tracinda. I agree with evok: this is likely just a move on Kirkorian's part to drive up the value of GM stock so he can unload it.

The problem for him is that he needs to unload the stock at the low 30's or better. That is the problem. A sign that he is sell stock on the open market will drive down the price. He needs to figure out a way to sell blocks of shares privately. This appears to be such an attempt. With GM not giving a full divended, institutional investors may be hard to come by.

Edited June 30, 2006 by evok

[Mr.Krinkle]

very interesting. gm is calling an emergency board meeting.

all links on this from reuters.

http://today.reuters.com/business/newsarti...-IndustryNews-3

http://today.reuters.com/business/newsarti...-IndustryNews-4

http://today.reuters.com/news/ArticleBusin...AUTOS-GM-DC.XML

http://today.reuters.com/business/newsarti...-IndustryNews-5

funny how one guy gives away 30 billion and the next day...this

[evok]

http://today.reuters.com/business/newsarti...-IndustryNews-5

Kirk wants out. That reads like investment CYA 101

Edited June 30, 2006 by evok

[Guest Josh]

very interesting.  gm is calling an emergency board meeting.

<{POST_SNAPBACK}>

York is getting his ass reamed....you can count on that.

[csaba1218]

Some might argue that GM's product are even more horrible.

Amen to that.

[Guest buickman]

As I have repeatedly claimed, "P Rick" Wagoner is nothing more than a puppet, a virtual stooge for the bankers who will, I guarantee you, clean up as advisors to any such alliance.

Buickman

From www.thetruthaboutcars.com

The best I can do is reference Martha Mitchell. Mrs. Mitchell's husband John was the US Attorney General under Richard Nixon. Mrs. M would call Washington reporters in the middle of the night with bizarre tales of illegal activities: a secret enemies list, South American assassinations, break-ins, wiretaps, the FBI Director wearing a dress and more. By the time these reporters realized Mitchell wasn't a crazy drunk, her husband was in jail for conspiracy, obstruction of justice and perjury. In other words, while it's easy to dismiss Buickman's rants as the sour fruit of a man scorned by GM's Boy's Club, being bitter doesn't make a man a fool. Or, come to think of it, wrong.

Edited June 30, 2006 by buickman

[NOS2006]

Damn, this is news. A GM-Nissan-Renault (GMN-R? haha) would be sweet, IMO, as long as it's split in thirds.

Quick, easy question: is Renault the top seller in France? I don't know that market at all except that I think they have their own Big Three (Renault, Citroen, and ?).

[Drew Dowdell]

As I have repeatedly claimed, "P Rick" Wagoner is nothing more than a puppet, a virtual stooge for the bankers who will, I guarantee you, clean up as advisors to any such alliance.

Buickman

From www.thetruthaboutcars.com

The best I can do is reference Martha Mitchell. Mrs. Mitchell's husband John was the US Attorney General under Richard Nixon. Mrs. M would call Washington reporters in the middle of the night with bizarre tales of illegal activities: a secret enemies list, South American assassinations, break-ins, wiretaps, the FBI Director wearing a dress and more. By the time these reporters realized Mitchell wasn't a crazy drunk, her husband was in jail for conspiracy, obstruction of justice and perjury. In other words, while it's easy to dismiss Buickman's rants as the sour fruit of a man scorned by GM's Boy's Club, being bitter doesn't make a man a fool. Or, come to think of it, wrong.

Hello. Is this Miss Mitchell? Miss Martha Mitchell?