Renault chief expects car industry consolidation

[Stéphane Dumas]

articles from International Herard-Tribune and Bloomberg
http://www.iht.com/articles/2008/07/...ss/renault.php
http://www.bloomberg.com/apps/news?p...FU&refer=japan

AIX-EN-PROVENCE, France: A slump in the global automotive sector could give impetus to plans for consolidation within the industry, according to the head of the French carmaker Renault.

"Something will have to happen," Renault's chief executive, Carlos Ghosn, told delegates at a business conference in this southern French city Saturday.

Ghosn said the problems of the U.S. sector could spur deals.

"What is happening in the states at the moment does not bode well for the future," he said.

The United States, the world's largest automobile market, is reeling from record gasoline prices, tighter credit conditions and a slump in housing.

General Motors kept its No. 1 spot in the United States in June, but some analysts have raised concerns over the financial state of the company, whose shares fell to a 54-year low this month.

Ghosn has consistently said that Renault and its Japanese partner, Nissan, could revisit plans drawn up two years ago to expand their alliance to a third party, although he has also said that Renault was in no rush to do so.

The investor Kirk Kerkorian suggested a three-way union involving Renault, Nissan and General Motors two years ago.

Analysts have speculated that Nissan could expand its ties with Chrysler after they signed a deal this month to supply each other with vehicles.

At the business conference in France, Ghosn also highlighted the cost pressures facing car manufacturers.

He said he had recently discussed the issue of rising steel prices with the European Central Bank and reiterated his support for a weaker euro compared with the dollar.

The weakness of the dollar has hurt European companies' overseas sales because its makes their cars' prices less competitive.

"As a car manufacturer, I want the lowest possible price for the euro," Ghosn said.

Renault shares closed down 0.3 percent at €52.23, or about $82, on Friday. The stock has fallen around 46 percent since the start of 2008.

Renault owns a controlling 44 percent stake in Nissan, while Nissan has a 15 percent stake in Renault.

[F14CRAZY]

that Ghosn idiot needs to stfu and go home

[Major_Tom]

Originally Posted by F14CRAZY

that Ghosn idiot needs to stfu and go home

What an insightful and carefully though-out contribution to the discussion! Thanks for sharing!

[PAULSTS1]

Carlos Ghosn is pro active, not reactive as is Rick Wagoner. He took steps to contact his lender about euro dollars vs. steel rates because he knows what must be done to position his companies for success.

In an earlier thread I recommended Ghosn as replacement CEO for General Motors, because with the volume required to keep GM afloat, the manufacturing processes of the 1920, will not work. Engineers make good employees if given direction and challenges, entrepreneurs are a different kind, they create, then solve issues, and merchandise items. With todays complex problems: tight Credit, Bank Failures, unproductive war efforts, and the Oil Crisis, you need a CEO with vision, and the drive to accomplish goals.

Again, I invite Warren Buffett, to acquire controlling interest in GM, fire the entire board, and run the Company! Make GM better than it ever was!

[ronald mcretard]

Originally Posted by PAULSTS1

Carlos Ghosn is pro active, not reactive as is Rick Wagoner. He took steps to contact his lender about euro dollars vs. steel rates because he knows what must be done to position his companies for success.

In an earlier thread I recommended Ghosn as replacement CEO for General Motors, because with the volume required to keep GM afloat, the manufacturing processes of the 1920, will not work. Engineers make good employees if given direction and challenges, entrepreneurs are a different kind, they create, then solve issues, and merchandise items. With todays complex problems: tight Credit, Bank Failures, unproductive war efforts, and the Oil Crisis, you need a CEO with vision, and the drive to accomplish goals.

Again, I invite Warren Buffett, to acquire controlling interest in GM, fire the entire board, and run the Company! Make GM better than it ever was!

At this point Buffett probably wouldn't touch GM with a 10 foot pole, and for that matter neither would Ghosn. Maybe I'm wrong though. In any case, either of them would be a million times better than Wagoner.

[PAULSTS1]

Originally Posted by ronald mcretard

At this point Buffett probably wouldn't touch GM with a 10 foot pole, and for that matter neither would Ghosn. Maybe I'm wrong though. In any case, either of them would be a million times better than Wagoner.

Actually in the case of Warren Buffett 69 Billion times better!