GM Board Votes To Start Talks On Alliance
07-07-2006, 01:37 PM
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GM Board Votes To Start Talks On Alliance
DETROIT - General Motors Corp.'s board of directors has voted to start exploratory discussions with Renault SA and Nissan Motor Co. on a potential alliance between the three automakers, GM announced Friday.
GM Chairman and Chief Executive Rick Wagoner will lead the talks, which stem from a proposal by billionaire GM shareholder Kirk Kerkorian.
Japan's Nissan and France's Renault issued statements saying that they looked forward to starting the talks soon.
GM shares were up nearly 2 percent after the announcement.
In a teleconference meeting held Friday, the board authorized the company's management to consider the proposal and "weigh the potential benefits of such an alliance in order to assist the board in its decision making," George Fisher, a member of the board, said in a statement.
Kerkorian had been pushing for GM to consider an alliance with Renault and Nissan in an effort to help the world's biggest automaker stage a turnaround and reverse its declining market share.
"General Motors has a lot of experience with different types of alliances and some have provided significant benefits to GM's competitive position and financial strength," Wagoner said in a statement.
"We will enter into discussions with the managements of Renault and Nissan with an open mind — eager to hear their ideas of how an alliance between our companies might work to our mutual benefit. Given the complexity of any potential relationship, it has to be carefully considered on its merits before coming to any conclusion," he said in a statement.
Fisher, retired chairman and CEO of Eastman Kodak Co., said the board will monitor the talks and make sure they serve the best interest of all GM stockholders.
The Nissan and Renault boards each endorsed the discussions after Kerkorian's Tracinda Corp. disclosed the potential alliance in filings June 30 with the Securities and Exchange Commission.
Wagoner said that when the idea of joining with Renault and Nissan was first suggested, he contacted Carlos Ghosn, chief executive of both Renault and Nissan, and the two agreed to meet.
"We periodically receive interesting proposals, and we owe it to the company and its shareholders to explore how they might work, and to objectively weigh the potential benefits and issues that each might present," Wagoner said.
GM shares rose 55 cents, or 1.9 percent, to $29.75 in afternoon trading after the announcement. They have been trading in a 52-week range of $18.33 to $37.70
By TOM KRISHER, Associated Press Writer
GM Chairman and Chief Executive Rick Wagoner will lead the talks, which stem from a proposal by billionaire GM shareholder Kirk Kerkorian.
Japan's Nissan and France's Renault issued statements saying that they looked forward to starting the talks soon.
GM shares were up nearly 2 percent after the announcement.
In a teleconference meeting held Friday, the board authorized the company's management to consider the proposal and "weigh the potential benefits of such an alliance in order to assist the board in its decision making," George Fisher, a member of the board, said in a statement.
Kerkorian had been pushing for GM to consider an alliance with Renault and Nissan in an effort to help the world's biggest automaker stage a turnaround and reverse its declining market share.
"General Motors has a lot of experience with different types of alliances and some have provided significant benefits to GM's competitive position and financial strength," Wagoner said in a statement.
"We will enter into discussions with the managements of Renault and Nissan with an open mind — eager to hear their ideas of how an alliance between our companies might work to our mutual benefit. Given the complexity of any potential relationship, it has to be carefully considered on its merits before coming to any conclusion," he said in a statement.
Fisher, retired chairman and CEO of Eastman Kodak Co., said the board will monitor the talks and make sure they serve the best interest of all GM stockholders.
The Nissan and Renault boards each endorsed the discussions after Kerkorian's Tracinda Corp. disclosed the potential alliance in filings June 30 with the Securities and Exchange Commission.
Wagoner said that when the idea of joining with Renault and Nissan was first suggested, he contacted Carlos Ghosn, chief executive of both Renault and Nissan, and the two agreed to meet.
"We periodically receive interesting proposals, and we owe it to the company and its shareholders to explore how they might work, and to objectively weigh the potential benefits and issues that each might present," Wagoner said.
GM shares rose 55 cents, or 1.9 percent, to $29.75 in afternoon trading after the announcement. They have been trading in a 52-week range of $18.33 to $37.70
By TOM KRISHER, Associated Press Writer
07-07-2006, 02:58 PM
#5
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Join Date: 06-15-2006
Location: Nashville, TN
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Originally Posted by captain howdy
Why the hell would they want to form an alliance with a French car manufacturer? I can kind of see why the would want to team up with Nissan but Renault is beyond my comprehension. 
The French always surrrender.
07-07-2006, 04:23 PM
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Join Date: 07-04-2006
Location: Miamisburg OH
Posts: 68
Can You Say "LeCar"? My buddy had one of these in high school. 4 speed with a busted muffler. We would race (and lose) against everything. Even got beat by a dodge omni. We laughed our butts off. We could pick up the rear end and move it.
:twothumbs happy in the pants, rotflmao.
07-08-2006, 02:53 PM
#10
Originally Posted by jaydogg
this kinda makes me happy in the pants. Im a Nissan guy first, chevy second. how about a RB26dett powered camaro that is AWD.
We still have the Mustang, And It's still RWD, And Mostly American...