GM to merge with Nissan / Renault?

Kirby

Kirby

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DETROIT (Reuters) -- One of the largest investors in General Motors Corp. Friday urged the world's largest automaker to consider a three-way partnership with Nissan Motor Corp. and Renault SA, sending shares of GM up sharply in opening trade.

GM (up $1.21 to $28.65http://money.cnn.com/quote/chart/chart.html?symb=GM) shares rose over 6 percent to $29.90 on the New York Stock Exchange after trading higher before the bell.

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.

Kirk Kerkorian, GM's largest single shareholder, owns about 10 percent of GM. His representative, Jerry York, sits on GM's board and the automaker since January has followed a number of his suggestions for a faster turnaround, including executive pay cuts and a reduced dividend.

"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," Tracinda wrote in the letter.
 
bmw046series

bmw046series

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Well it kills Nissan off as a direct competitor (real good news), allows a deeper hold in Europe with Renault, and makes GM A BIGGER COMPANY, delaying Toyota even coming close to the already Large Fortress known as General Motors Corporation and its market share which is larger than most people think and the difference in market share and sales between Toyata and GM is quite large.

I have to say THE STOCK IS GOING NUTS!!! Good news for me $$$, and my stock broker.

The funny thing is it is just a "suggestion" it hasn't even happened and might not, of course the media is making it look like it has already happened.

My Take this is one of the best things GM could do, yeah fact they make shitty cars, but that is just what they do, they need to make a profit on it though.
 
bmw046series

bmw046series

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Comparing to a BMW or a Porsche, they are shitty, but if you own more and more market share by purchasing up competitors, you make yourself immortal, but you have to keep killing each new competitor look at the 50s and 60s.

Best example Microsoft is starting to hurt (kind of) by not eliminating competitors, (contrary to popular belief Google and Microsoft ARE NOT COMPETITORS) hell Google doesn't even have a business plan they only make money off selling their stock [chair] .

GM is a flagship in America and a lot of people are loyal to GM, I own GM products, I'm a shareholder, I don't see them ever falling, Ford who knows but GM is an enormous Corporation with its hands in a lot of companies (more than you or I know), compared to Toyota, Toyota is a pie in the sky, and GM IS the Sky.
 
codex57

codex57

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I'm not quite sure why Renault/Nissan would want to do this. I see the benefits for GM, but fail to see a great reason why Renault would want to. I mean, getting bigger is nice and all. You get larger purchasing power, etc. But when you merge, you also take on the other companies liabilities and problems. GM's got many. Renault/Nissan are doing just fine with their own merger. They don't need GM.

Considering all those weird Japanese business relationship, I wouldn't be surprised to find out Toyota has all sorts of non-car related business dealings. GM may be the "sky" in America, but Toyota's the "sky" in Japan. Since the core business is still automobiles, I have a LOT more confidence in Toyota than GM.
 
B

Big Daddy

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General Motors Corporation, also known as GM, is the world's largest automaker and has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.

GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea, and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. GM also has advanced technology collaborations with DaimlerChrysler AG and BMW AG of Germany and Toyota Motor Corp. of Japan, and vehicle manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corp. of China, AVTOVAZ of Russia and Renault SA of France.

Genuine GM Parts and accessories are sold under the GM, GM Performance Parts, GM Goodwrench and ACDelco brands through GM Service and Parts Operations, which supplies GM dealerships and distributors worldwide. GM engines and transmissions are marketed through GM Powertrain.

GM's largest national market is the United States, followed by China, Canada, the United Kingdom and Germany.

On June 30, 2006, Kirk Kerkorian, whose Tracinda Corporation is the third-largest shareholder of General Motors, proposed a tie-up between GM and the Renault-Nissan group. Carlos Ghosn, the CEO of Renault and Nissan expressed interest to possibly acquiring a stake in GM, and include them in the successful Renault-Nissan alliance. It has been said that GM ordered an emergency board meeting to examine Kerkorian's proposal. [1]
Click to expand...
This from Wikipedia
 
C

carlsturm

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#11
This isn't viewed as merger, doesn't make GM a bigger company or stifle competition with Nissan. It could be an astute move for GM but they will need to swallow a lot of pride to go thru with it.
 
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