GM-Renault-Nissan Alliance Talks Make Little Progress

Includes: GM, NSANY
by: Judith Levy

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

GM Talks Sputter With Renault And Nissan So Far

Summary: General Motors (NYSE:GM) remains skeptical of the merits of a proposed three-way alliance with Renault and Nissan (OTCPK:NSANY), an alliance that is to be discussed next week by GM CEO Rick Wagoner and Renault and Nissan head Carlos Ghosn. Mr. Wagoner is under pressure from investor Kirk Kerkorian, who holds a 9.9% stake in the company and is aggressively pushing for the alliance. Mr. Ghosn and his team favor the proposal because of its potential to save costs and create value, while Mr. Wagoner's team would rather give its turnaround strategy time to show results. Mr. Ghosn hopes for, "a comprehensive alliance, including shared equity stakes, or none at all" -- an approach unlikely to tally with Mr. Wagoner's preference for limited cooperation on a narrow scale. Full WSJ article >
Related links: Message to GM Investors: Whoa!Going, Going, Ghosn? GM-Nissan-Renault Merger Seeming Increasingly UnlikelyGM Slowing SUV Production; Wagoner Comments on Nissan-Renault

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