[PAULSTS1]

Here is another perspective on the upcoming GM Reinvention: In the news last week Billionaire investor, and GM’s largest single shareholder Kirk Kerkorian’s Investment Company Tracinda Corp made news with a letter directed to Rick Wagoner CEO,Bob Lutz Vice Chairman and to GM’s Board of Directors concerning a a restructuring proposal: That a mini merger of GM occur between Renault and Nissan. Both Renault and Nissan in exchange for 9 billion dollars cash would agree to buy 20% each of GM.

I heard automotive journalists; John Mc Elroy, Autoline Detroit, David Welch, Business Week, and Drew Winter, Wards Automotive go thorough a pro and con discussion on what might be accomplished if this merger was consummated.

The merger would create an auto manufacturer twice the size of Toyota, with Global reach, into Asia (Nissan) Europe (Renault), and the Americas (GM). The parts purchasing annual budget of $185 Billion dollars (100 Billion from Renault-Nissan, and $86 Billion from GM). Ultimately the sharing of Procurement, Safety, Environmental issues, and possible platform sharing (reasonably estimated within 10 years). The mastermind Carlos Ghosn, Chairman of Nissan, and a Director at Renault is regarded as a genius for his handling of the Nissan-Renault restructuring, and the know how of Auto Industry dynamics could bring new vision to the GM crisis.

Against it would be: What will become a much larger Company with
redundant car lines, possibly an upset in Management at the top level for GM.
The buyout of Full time workers and staff reductions is already calculated at
$4 Billion dollars, today. The future reductions of redundant workers,
factories is currently unknown. One of the negative issues still confronting
Mr. Ghosn’s Nissan leadership, was his decision to build Nissan trucks 3
years ago in a new manufacturing plant, with an unseasoned workforce, after
receiving negative recommendations from his executive staff. That
manufacturing facility has been unable to rectify assorted quality issues,