FStop How do you feel about working for/with Nissan/Renault

[Scouts Out]

I was wondering your take of the GM/Nissan/Renault talks. I would assume GM would not fall for the merger business that Chrysler did before everyone finally realized it was actually a take over. And what exactly woould GM gain from this being merger? Renault and Nissan were both in poor shape not too long ago.

[f5fstop]

Heck, if I could move back to TN from MI, I would be happy to have FIAT purchase GM.
My opinion, and that is all it is, is that Wagoner is not happy about it, but Kirkorian is pressing through his henchman York, to get something going to raise the price of GM stock above the price Kirkorian paid, so that he can make another killing in the stock market.
Nissan has lost market share the past two years and has just announced a giant 900K vehicle recall due to a 4-cylinder leaking oil and causing possible fires. Renault has also been losing market share, and didn't even know they had any to lose. I would guess that if they teamed up to produce more hybrids, diesels, etc., then it might be beneficial to all involved.
I also believe that Nissan needs more production capacity in the US, and it would be less expensive to purchase (lease, rent?) some of the closed GM plants.
A perfect one would be the Saturn plant in Spring Hill TN, about twenty miles from their new headquarters in Franklin (due to open in a few years), 60 miles from Smyrna their large assembly plant, and about 70 miles from Nissan's big new engine plant in Deckerd TN.
GM could conceivably lease the production plant in Spring Hill to Nissan, and continue to produce the EcoTec engines at the same site in GM's powertrain plant.
Right now there is no product named for that site after they stop running Saturn Vue's in July '07. The ION goes away this coming December.

I also believe that in the near future, there will be less auto companies, and that the number will diminish due to mergers. I believe Ford will go before GM, and they were in discussions with Nissan a few years ago.

I guess time will tell.

[HummerNewbie]

They are ceasing production on the ION and Vue? I thought they were their bread and butter/ top sellers.

[f5fstop]

Originally Posted by HummerNewbie

They are ceasing production on the ION and Vue? I thought they were their bread and butter/ top sellers.

Yes, ION replacement for two years will be, "can't say." VUE will resume production in '07, but at a different location. The SKY will continue to be manufactured in Wilmington DE, the Aura in Kansas City, and the new Outlook will be Lansing (not sure on that one).
So, in '07, Saturn will have a new VUE, an ION temporary replacement, the Aura, SKY and Outlook.

[PARAGON]

I don't know if this more of a merger possibility or a Waggoner replacement possibility. There might be some means to an end to get Ghosn on board to run things for GM as he seems to be the poster boy in the auto industry right now, from a shareholder perspective.

To pull it off might mean selling some big share in GM, which would also infuse cash.

Who knows? Kerkorian is not looking to do what is best for us, the consumer.

[f5fstop]

I believe Gosn is loosing his credibility, but I do agree, Kirkorian would like to see Wagoner out on the street with Gosn sitting in his seat. Problem is, the board is impressed with the Wagoner turn around plan, the number of employees who took the buyout, the layoffs, the health care plan, etc. So it could end up that Wagoner will enter into talks, and come out with nothing and throw it into Kirkorian's face.

DETROIT -(Dow Jones)- Nissan North America's auto sales fell 19% in June compared to the prior year, as the Japanese auto maker struggles to maintain momentum in the critical U.S. market.

Sales of Nissan vehicles, including its luxury Infiniti brand, totaled 75,154 vehicles in June, the company said in a press release. Total car sales fell 25% from a year ago to 38,127 vehicles, while sales of truck-based vehicles slid 12% to 37,027.

Nissan North America, a unit of Nissan Motor Co. (NSANY), has recently hit the skids in the U.S. market following big sales gains in recent years. Nissan North America sales were down 5.7% in the U.S. in the first six months of 2006, while its Japanese rivals - Toyota Motor Corp. (TM) and Honda Motor Co. (HMC) - have continued gaining market share at the expense of the top U.S. auto makers.

[Scouts Out]

I agree Kirkorian is out only for his self (imagine that) and I do not doubt for a moment that he would drive GM into bankruptsy to earn a few more dollars. Renault and Nissan I think each had a few shining years but now reality is catching up. I agree about few car companies (and companies i general) in the future. Hell I even read where land owership in the US among foreigners is up to over 12%. I guess everything is for sale.

[marin8703]

hey you guys hear?

The Dow Jones Industrial Average broke into record territory, the Hewlett-Packard pretexting case turned criminal and GM ended it's talks with Renault-Nissan in the first week of the fourth quarter.

Well the part about GM ending talks with Renault-Nissan, im glad!

SAN FRANCISCO (MarketWatch) -- General Motors Corp. on Friday said its decision to end alliance discussions with Renault and Nissan Motors was unanimously approved by the company's board, which concluded that the alliance would "substantially disadvantage" GM shareholders as potential aggregate synergies were "highly skewed" to Renault-Nissan. Jerome York, who had strongly backed an alliance, resigned as a director earlier Friday.