Monday, September 25, 2006

Ghosen Sees A Reluctant GM

September 25, 2006

Carlos Ghosen seems to feel that GM is reluctant about forming an alliance with Nissan and Renault.

There have been several scenerios that have come across the wires including Ford with Nissan and Renault, as well as Ford partnering up with GM.

GM is currently restructuring, and the U.S. automaker may well have their desires set on controlling their own outcome rather than make sweeping changes and having partners to answer to.

According to an article by Joann Muller of Forbes, there are obvious synergies that are apparent to all parties, but it seems to boil down to whether or not GM wants to give up some aspects control.

Article Excerpt:

Ghosn Sees GM Reluctant Ahead Of MeetingJoann Muller, 09.25.06, 7:46 PM ET Paris -

"If General Motors is to proceed with a proposed three-way alliance with France’s Renault and Japan’s Nissan Motor, it may well come down to the persuasive powers of Carlos Ghosn, chief executive of Renault and Nissan, who is scheduled to meet this week in Paris with GM chief G. Richard Wagoner.

It looks as if Ghosn will have his work cut out for him. So far, it appears GM (nyse: GM - news - people ) is not convinced.

Ghosn’s chief negotiator on the discussions, Patrick Pelata, told a small group of journalists over dinner in Paris Monday that he sees clear benefits from an alliance with GM. “There are synergies--this is obvious.”

But whether they are sufficient to convince GM to commit to the kind of sweeping alliance that Ghosn envisions, Pelata said, “I don’t know.”

GM, which is in the early stages of recovery after a massive restructuring, insists it is approaching the alliance talks with an open mind. Others say it appears GM believes it can solve its own problems without the added complexity of two partners......."

Interested SSG readers can read the entire article HERE

9/25/2006 09:13:00 PM

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