http://www.forbes.com/home/feeds/afx...fx2852748.html

The stock holders are cracking their knuckles.

Bob Wilson

 

No doubt, it would be a very effective and beneficial alliance for all three. However, In the grand scheme of things , I believe it will only provide better efficiencies. I never regarded Renaults as remarkable cars in terms of quality and reliability so I fail to recognize what will they help GM improve on. The two Renaults I had were pretty awful vehicles in terms of build quality and reliability. Nissan? Well what can I say, they appear to be doing better in recent history, but in my view they havent improved as much as other automakers have in recent times (Hyundai), Nissan's legacy values don't really add terribly much to that alliance.

Toyota and Honda (especially Toyota) should't have much to fear from this proposed "get together" - at least in the short run.

MS

 

I think GM management has more to fear. A BBC radio report suggested a major GM stockholder is unhappy that his 10% investment has made no money. The BBC reports he pretty well forced an emergency stock holders meeting about this deal.

Like you, I don't think Renault and Nissan would bring the type of changes needed. But it is a way that GM management can start putting on their parachute harnesses. Sometimes you have the fire the management and the faint scribbling of 'pink slips' is begining to be heard.

Bob Wilson

 

Keep in mind that Renault's marketed in Canada may bear little or no resemblance to Renault's in their home market. I just got back from Germany and the Renault products I saw on the road there were very impressive. Renault has a remarkable knack for making flexible and innovative small vehicles. Renault is a major player in Europe, even though they are almost non-existent in North America.

Don't forget, it was Renault that bailed out Nissan.

Peace,

Martin

 

Kirk Kerkorian. He is the billionaire behind Tracinda Corp. He's 88 years old, so he's obviously not interested in waiting for the long term payoff of the GM restructuring program. He has recently expressed his opinion that things are progressing as expected, but obviously from his perspective, faster is better.

I'd say "forced" is a pretty strong word. I think he suggested the idea and the Board considers it to have enough merit to meet to discuss whether or not to follow-up on it. The media is a little bit too worked up about this one. It's waaaay too early to say whether anything will ever come of this. Slow week on Wall Street pushes this to Page 1.

Peace,

Martin

 

Sorry Martin. I did not own those two Renaults here in Canada. As as matter of fact it is VERY rare to see one of those French odities arround these parts. Peugeots and Citroens although still rare, are more likely to be spotted.

I owned them in France and Portugal, so while I may not know how far Renault has improved in recent years, I do know that they were almost bottom feaders in terms of quality and reliability - I did not swear by them - I swore AT them.
Yes, some of their models may look impressive now and then, but as many of us know, "looks" can hide the ugly reality of ownership.

Yes, at times we even consider Renault to be the "European GM". You are right, they did technically "bail out" Nissan.

Regards;

MS

 

Of course, I can understand why Ghoshan runs Nissan so conservatively. The company was in financial trouble for a long time and now it has been made solvent under his leadership. There was a price to pay for that, however. Nissan has very few engine/transmission combinations, and not many of their vehicles look "cutting edge". Reliable? Sure. Cost effective for both consumer and corporation? Sure. Innovative and forward thinking? Well... Not really.

Nissan-style leadership can certainly help GM cut their losses (shaving their bloated upper management would be a great place to start). But right now GM also needs an infusion of INNOVATION. They need a fresh product line that looks 21st century, not from the 1990s. They need to make cars that perform well AND look good. They need SUVs that get low 20s instead of 11-12 MG; trucks that get upper 20s instead of 13-14 MPG; and build some CARS for cryin' out loud! Not everybody hauls things! Some people just need to drive to work and buy groceries!

They'd do well to make a car to compete with the Yaris (a $14k car that looks interesting, has a nice interior, and gets almost as many miles per gallon as a Gen-1 hybrid.)

Can Nissan provide that kind of innovation? Probably not.