Commentary: The GM-Nissan-Renault Alliance

[hotrod747]

GM would serve itself very well by focusing and delivering beyond any expectation on ALL of it products. They have demonstrated that they already have what it takes.

[01cavalier]

So, basically nothing positive from the arrangement. not something I would want. Seems like Kerkorian's backhanded attempt to take over GM by using another company. I don't like this.

[iluvcamaros]

Hmmm, very interesting read. Definately makes it clear this has nothing to do with the actual building of cars. More like money.

I am getting sick of people saying that alliances are fine and very productive. They are. But, this isn't GM developing hybrid technology with BMW or a 6spd trans with Ford. This is another company buying a large portion of GM. I don't care if GM works with other companies, I just don't want them owning any part of GM. Am I the only one who feels their is a big differance between a simple alliance and this? Am I not interpereting this correctly? Please tell me if I am not.

Originally Posted by jbernie

I think GM is in a position where it does need a merger or alliance of this nature. Defiunately GM could benifit from the ultra efficent euro diesels but that is about all.

If GM wants anything of a specific nature (engines, platforms, various technology, access to other markets) they should do like they have done with Isuzu, Suzuki, and Daewoo and buy a controlling share (or all) of them or form an alliance like they have with Ford, BMW, and Toyota to develop new technolgies or to build cars (Matrix/Vibe).

[nimrod]

GM in its current form is already too much like a consortium of several smaller companies. wagoner and lutz have begun to change that by implementing a global development strategy and selling the same cars on different continents instead of having a myriad of mediocre cars for every brand/region.
an ALLIANCE with nissan to save a couple of bucks on R&D and purchasing would be good, however nissan BUYING 20% of Gm is not an alliance, it is a takeover. as said before nissan and renualt dont really have anything that would benefit GM. opel already has nice diesel engines. the japanese market is extremely competitive. maybe the reborn cadillac can get a foothold there.

[Bravada]

Mgescuro is right, GM does not need to "merge" with any other automaker in any way. Whatever the American media says, GM is still world's biggest automaker, with sound manufacturing bases and market shares in almost all major markets (save for Japan, which is a crowded and rather not growing market anyway), and it is one automaker that has really a lot of brands that it doesn't know what to do with. Getting burdened with having to care about more brands and manufacturing facilities is the least thing they need now.

Of course, this doesn't mean that GM couldn't use some better, more streamlined management and cost-cutting, as well as technology infusion. The first one can be achieved by a solid sheakup in GM's organisational structure, but it has learned to protect itself quite effectively, which is why Kerkorian had to resort to such strange moves. The latter can be achieved through non-exclusive, area-specific alliances. See PSA - they develop and manufacture their diesel engines with Ford, petroleum engines with BMW, commercial vehicles and minivans with Fiat and city cars with Toyota, and soon they will start manufacturing an SUV with Mitsubishi. They are doing really fine without "merging" with anybody.

If Ghosn thinks of this idea anything else than that Kerkorian needs to finally retire to an assited living community, it really shows that his folie des grandeurs exceeded safe limits, especially given how Nissan's losing momentum now. I guess he me might be trying to prepare himself a parachute to escape from the responsibility for having to deal with another slew of problems at R-N - kinda like what Mercedes/Chrysler management did when they decided to merge, to drive away attention from problems in either company that surfaced anyway.

As concerns what you say about "being American", does anybody know who really owns GM today? Take note that both Ford and GM, wherever they might be headquartered, are global companies nowadays. GM could actually be better off doing away with US operations as of today.

[Member17739]

Originally Posted by Carman14

So which company would be a good alliance partner with GM? I agree with everyone that R-N is not really helpful to GM at all.

However, I think Honda would be best of the Asian brands. In Europe, I think VW would be a good partner. Just getting access to their interior builders would be worth its weight in gold for GM alone.

And what about Ford? GM buys Ford...dumps Pontiac, Lincoln, and Mercury. Maybe, just maybe...

Nobody can buy Ford, unless the Ford family is selling. I would like to see Ford and GM form an alliance, they are worth about the same so they could enter the deal as equals. The money could be saved on transmissions, platforms and even engines. Instead of GM spending money on the HF 3.6 engine and Ford doing the same on their new 3.5 engine they could have one for half the money.That is how you save money.

[jwrebholz]

GM does need a more streamlined management approach. They need fewer bean counters and less red tape.

Kerkorian and his ilk though are the wrong way to go about it. GM needs to slim down. Kerkorian wants to gut the company for a quick buck.

If this were Warren Buffett on the board and making this proposal, I'd have absolutely no qualms with it. Why? Because I know Buffett is an intelligent, respectable man who understands the real value of a dollar, and the value of the company to the nation's economy. Kerkorian looks at this deal and all he sees are dollar signs.

[grayhorse]

Originally Posted by mgescuro

The GNR Alliance
...yet another commentary by mgescuro...

What the alliance does do, is create a global juggernaut with about 25% of the world market, compared to Toyota’s 14%. But as Toyota has proved time and time again, market heft doesn’t really count in this market. What I believe is needed in the global market is agility and a solid strategy. I believe GM has a strategy. It doesn’t need a complicated alliance to achieve their goals. All they need is time. And they need someone who is willing to step outside the GM corporate mentality and consider no division at GM or division-head at GM “safe” from the proverbial axe. Wagoner has done that. He’s been a different leader than any other GM CEO in recent past. I’m not defending Wagoner, as I still think he’s got a lot to do and needs to do, but he’s certainly treated GM differently than any other GM head.

Kirkorian+York+Ghost will fail to capture 25% of the world car market because die-hard GM fans like me won't buy anymore car made by GM-N-R.

[CrunkedRL]

I agree with most everything that was said. I think the 47,000 buyouts we heard about last week was a good start on GM's road to recovery. But I don't think the General should consider a merger that has the potential to give a foreign company the upper hand on any executive level decisions. I firmly believe GM execs have the potential to get the company back on track independent of any other company. But it's going to take alot of work and dedication. Nissan's track record really wasn't the greatest from 1980's through the 90's. Nissan is just now begining to earn respect as a key player in the automtive world. Renault is next to non existant IMO.

[avdberg]

An alliance between renault-Nissan and GM is, in my opinion, a very, very bad idea.
One of the reasons of GM Europe's troubles is that in the early nineties GM europe was obsessed building cars as cheaply as possible. I'm sure anyone will remember mr. Lopez. Mr. Lopez went and GME -just in time- remembered that you need good quality cars. Nowadays the Renaults and Nissans are at the bottom of the various reliability lists. So why bother working with them?
If this will happen, my new SAAB will be the last one. I'll buy a Benz instead!
BTW, GME and Renault are selling the same delivery vans (Opel Vivaro = Renault Trafic and Opel Movano = Renault Master)

[megeebee]

Renault-Nissan has more to gain than GM from this. Personally, I feel it's an attempt to take advantage of a situation (GM's) to help Kerkorian ( who may just want to "cash-out" before "cashing-in". He is nearly 90) and Renault-Nissan ( who seem to have no hybrid or alternative fuel programs that I know of. The upcoming Altima Hybrid for example uses purchased off-the-shelf Toyota parts and technology.) They are realizing they are vulnerable in the future without these things. What bugs me the most is the appearance that Nissan and the God-like Ghosn are being cast by the media as "saviours", when in fact they need it more than GM. They smell blood, so to speak. I fervently hope that the GM board rejects this publicity stunt.
I saw a report on the PBS show "Nightly Business Report" on Friday and one of the hosts asked a guest if Nissan-Renault could help GM in areas like engineering and quality (if memory serves). I don't believe that Nissan product build quality is any better than GM's. On a model by model basis, I think that GM bests Nissan in many cases. GM has to go through the motions on this, board meetings, statements, etc. But as I wrote above, I hope they reject it, take the consequences, and keep plugging.

[Bravada]

OMG, don't make it sound like GM's superduper hybrid "technology" is that superior. It's nothing really special, Nissan could reverse-engineer it if they wanted too. Besides, quality is not "transferrable" either way.

Anyway, click on the link below

[x2222]

Originally Posted by jbartley

no it doesn't.

Suddenly there is two systems for every 1 system GM is trying to create. Nissan does not help GM in any way.

Well thats why they call it a merger. Similar systems will be merged and since nissans seem to work far better than GMs than its obvious who's will be eliminated.

[Quickening]

Great write up mg, and I totally agree. Is there anything just normal people can do to make sure this doesn't happen?

[mgescuro]

Originally Posted by Quickening

Great write up mg, and I totally agree. Is there anything just normal people can do to make sure this doesn't happen?

Nope. Absolutely nothing we normal people can do.