Blog: GM shenanigans
Dave Leggett | 5 July 2006
There is still plenty of comment around on Kerkorian’s slightly cheeky invitation for GM to enter preliminary talks with Renault and Nissan with a view to joining their alliance. The proponents of such an alliance believe that Ghosn, with his turnaround record, would bring something genuinely new to the table and that the potential industrial cost savings for such a mega carmaker would make it worthwhile.
The detractors point out that GM’s problems are mainly in North America (what would Ghosn do differently there?) and that it is already making some headway in dealing with them (restructuring capacity in US, buyout deals with workers, signs that product is getting better). GM is doing okay outside of North America. It leads the Chinese market, for example, and is now making money in Europe.
I guess, at the least, Kerkorian doesn’t have faith in GM’s management to deliver a turnaround and wants someone at the helm with a turnaround track record.
I, for one, can’t wait to see how GM’s management reacts to this at the end of the week.
Not doing a Ford-Visteon-style bailout deal with Delphi and therefore sending it into Ch 11 showed that Wagoner has some spine. Will he demonstrate that he is most definitely a vertebrate again?
In addition to the views already expressed on just-auto, auto industry sage Karl Ludvigsen will be sending his in shortly. I am also looking forward to hearing what he makes of it all.
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