Bruce Nunnally Posted July 1, 2006 Report Share Posted July 1, 2006 Today GM's largest stock holder, billionaire Kirk Kerkorian told GM that he had dinner with the leaders of Renault and Nissan, and that they would be open to GM joining their alliance. Renault, a French car company, and Nissan, the third largest Japanese car company, formed an alliance in 1999 to share development and production costs. Renault owns 40% of Nissan, so is nominally the lead partner in the alliance. Renault, started in 1898, is actually older than GM (1908), or Cadillac (August 22, 1902), and Nissan (1933). Renault made 2.5 million cars in 2005; Nissan made 3.5 million cars, and GM made 9.1 Million cars. Together they would control 23.7% of the world automotive market. The initial proposal is also that Renault/Nissan would purchase 10% each of GM, for US$3B or so, helping pay some bills. GM declared an emergency board meeting today (Friday 6/30/2006) to discuss. The alliance is described as a 3-way alliance, not a purchase. Bruce 2023 Cadillac CT4-V Blackwing Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
Vince P Posted July 1, 2006 Report Share Posted July 1, 2006 This should be very interesting to watch. Renault has a good track record with Nissan. Nissan was loosing money on each car they sold. Renault turned this around. In the long run, one of the three will actually assume the power. Nissan is controlled by Renault today. So it is between GM and Renault. Bets are on Renault. Vince P Link to comment Share on other sites More sharing options...
JimD Posted July 1, 2006 Report Share Posted July 1, 2006 It would be unwise to underestimate the motives, infuence and capabilities of Kerkorian (acting through Tracinda). The man remains ambitious and lurks around the auto industry looking for 'opportunities'. For those who did not live the history, do some research on Chrysler+Kerkorian. Did you buy GM at $20.00??? Jim Drive your car. Use your cell phone. CHOOSE ONE ! Link to comment Share on other sites More sharing options...
Bruce Nunnally Posted July 1, 2006 Author Report Share Posted July 1, 2006 I assume it helps more to buy the cars than the stock. If I drive my 2005 CTS for 3 more years maybe I can trade in for a 2008 model in Spring of 2009 when they go on sale, and the 2005 is on the far edge of the new car warranty. It has 18K miles on it now, so another couple months and it will be the highest mile CTS I have ever owned. Actually I did consider buying some GM stock lately, but my stock trading expertise is worse than my auto mechanicing. Bruce 2023 Cadillac CT4-V Blackwing Follow me on: Twitter Instagram Youtube Link to comment Share on other sites More sharing options...
Ed Fenwick Posted July 1, 2006 Report Share Posted July 1, 2006 I would hate the french to control GM Link to comment Share on other sites More sharing options...
ted tcb Posted July 1, 2006 Report Share Posted July 1, 2006 Actually I did consider buying some GM stock lately, but my stock trading expertise is worse than my auto mechanicing. Bruce, I can help you make a small fortune on the market ... just give me a large fortune to start with. 1989 FWD Fleetwood, Silver 1995 STS Crimson Pearl on Black leather 1997 STS Diamond White 1999 STS Crimson Pearl 2001 STS Silver 2003 STS, Crimson Pearl Link to comment Share on other sites More sharing options...
Dan Posted July 1, 2006 Report Share Posted July 1, 2006 I think GM needs all the help it can get. Renault saved Nissan, but on the other hand, look what they did to American Motors. Unless GM learns how to make something other than trucks and Cadillacs, they'll be in bankruptcy court. Link to comment Share on other sites More sharing options...
JIMDTS Posted July 2, 2006 Report Share Posted July 2, 2006 Sounds like a marriage made in hell Does not sound good for GM IMHO GM usually gets the short end of the stick in these deals or no stick at all Jim Link to comment Share on other sites More sharing options...
OynxSTS Posted July 2, 2006 Report Share Posted July 2, 2006 Ya I hope this, if it happens, works out a little better then that Fiat deal... Easin' down the highway in a new Cadillac, I had a fine fox in front, I had three more in the back ZZTOP, I'm Bad I'm Nationwide Greg Link to comment Share on other sites More sharing options...
JasonA Posted July 2, 2006 Report Share Posted July 2, 2006 GM (still) is the largest automaker in the entire world. I don't think this'll be some rinky-dink fly-by-night deal. Personally, I look forward to cooperation with others in the automotive community. Jason(2001 STS, White Diamond) "When you turn your car on...does it return the favor?" Link to comment Share on other sites More sharing options...
scottshoe Posted July 4, 2006 Report Share Posted July 4, 2006 Renault didn't ruin AMC... Did you see the cars AMC was making when that partnership came about? Mirada, Eagle, Spirit, Concord, shall I go on? They kept the only thing worth keeping... JEEP! Link to comment Share on other sites More sharing options...
Ranger Posted July 4, 2006 Report Share Posted July 4, 2006 You forgot the Pacer & Gremlin. Wish I could. Link to comment Share on other sites More sharing options...
Dan Posted July 4, 2006 Report Share Posted July 4, 2006 Don't forget the AMC Alliance Link to comment Share on other sites More sharing options...
scottshoe Posted July 5, 2006 Report Share Posted July 5, 2006 The Alliance was a Renault... along with the Fuego, LeCar, and the hatchback version of the Alliance.... Tadaaaa... the Encore! I owned a Fuego turbo and an Encore with all the Renault Racing goodies my Dad could get! The Encore was actually a really good car for the money... at least it could take all the abuse a 16 year old could give it! My Dad had a LeCar R5 turbo home one time... scary fast! The fastest cornering production car in it's day actually. He brought home an Alpine one time too, not the prettiest, but fun to drive! Link to comment Share on other sites More sharing options...
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