GM Wary of alliance

Posted: 9/26/2006 by Floyd in
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GM is said to be wary of an alliance with Renault of France and Nissan of Japan, it has doubts that this 3 way alliance would have benefits that Renault and Nissan insist would come with such an agreement. Patrick Pelata who is leading the talks for the Renault-Nissan side is making the case that it would help GM fend off it's rival Toyota ranked #2 in the world.

The two sides agreed to spend 90 days talking about the alliance which is said to cover everything from purchasing, manufacturing and product development. The talks have been making progress but nothing concrete yet, in recent days it has been speculated that the talks have stalled.

The strategy for GM is to cut about 30,000 jobs and close almost a dozen plants, Ford Motor Company is planning a cut of blue and White-collar workers about 35,000 by 2008. Check out this article about Ford I found, about their interest in "Mexico." All the while talking about the cutting into the middle-class, Link to: Within Reason

Breaking news from Autoblog says Kirt Kerkorian may buy 12,000,000 more shares of GM stock,

The move supports GM's potential alliance with Renault/Nissan, a merger that Kerkorian has battled for from the beginning. Officially, Tracinda said this in the filing with the SEC:

"Tracinda continues to believe that a strong opportunity exists in a potential alliance between General Motors, Renault and Nissan and that there should be strong General Motors board involvement in the analysis of such a potential alliance, including the utilization of independent advisors."

The move supports GM's potential alliance with Renault/Nissan, a merger that Kerkorian has battled for from the beginning. Officially, Tracinda said this in the filing with the SEC:

"Tracinda continues to believe that a strong opportunity exists in a potential alliance between General Motors, Renault and Nissan and that there should be strong General Motors board involvement in the analysis of such a potential alliance, including the utilization of independent advisors." Link to; Autoblog

GM exec: Hummer needs new models, its sales are up 50% but in contrast GM sales are down 12% why is that? what gets me is this and I am sure these exec. have had a somewhat good education, it is simple logic here and that is this; GM and the others are not producing an average priced car or truck for the majority of middle and lower class Americans so the Hummer sales are up, big deal, the average American in the middle and lower class are not going out there to buy a Hummer, are we? Until the big three bring a vehicle out to the average 'Joe' the sales will continue to go down, it is this simple.
Link to; CNN Money

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