Renault and Nissan

[Charles D. Barnette #1465]

According to the latest news, GM is considering a merger of some sort with Renault and Nissan. Is this really the answer to GMs woes? Will the French and the Japanese be designing our Cadillacs-say it isnt so! Charles D. Barnette

[Jerry]

With our luck Renault (French) will get their fingers into the engineering and we will be s.o.l.

[Rusty Shepherd CLC 6397]

Remember Renaults last Alliance, the (sometimes) rolling disaster area that was going to be the salvation of American Motors?

[Bill Gauch]

I am pretty sure I remember reading a while back that Nissan was going to do the American sales and marketing of the Renault. I also remember reading that GM and Nissan were headed towards a deal like Ford-Madza (partial ownership, mutual marketing/sales, etc).

Speaking from someone who has worked for US companies trying to compete for international dollars, teaming with Renault is probably the only effective way to get into France with any kind of market share. Even then, it will likely be a mild success for Renault and a horrible failure for GM.

Now, Nissan teaming is probably not a bad idea. I have been noticing a lot more Nissans on the roads around here. While its doubtful that GM will sell many more cars in Japan, maybe GM will get some high quality engineering and corporate efficiency out of the deal which would be worth its weight in gold.

[Eric Maypother CLC #15104]

I read something like that to recently, dont forget, "Cadillac" is a French name from the French explorer La Mothe Cadillac.
Eric

[Bruce Reynolds # 18992]

Exactly.

And all the other French names like deVille, LaSalle, Seville, or is that Spannish?

Bruce,
The Tassie Devil(le),
60 CDV

[Porter]

It is all a race to the bottom now, bottom line is profit, with GMs record losses and Toyotas profits the same $$$ # who wants to argue this point ?

The automobile is nothing more than a disposable computer type electronic transportation device that requires fuel for power, very little hand built construction any more, or at least no more than need be. They beat the vendors into the ground that make the parts, most of them have declared chapter 11, etc.

Consumers want reliability, style is the icing on the cake, and resale value is important too. Dont forget all the safety air bags, and the electronic amusement devices onboard now.

New cars are basically communist now, influence designed by the gubmint politburo, welcome to the new world globalist order of the automobile, just glad I grew up in the good old days, when GM ruled and style was the name of the game, good old fashioned Detroit Iron.

But hi performance is back, go figure, guess you cant stop good technology, whatever, just rambling, computers are very fast now too and cheap, not that you need anything faster but if you got the  $$$ they will sell it to you, speed is still in vogue, must be human nature, reliability is the key now on the low end, reckon it always was, called a Chevrolet or a Ford model T, Maytag, RCA, Skilsaw, GE product, etc. Now it is Honda, Toyota, Panasonic, Makita, etc. Sure , we still have good American brand names with products built overseas like HP, Dell.....  but not many blue collar domestic jobs anymore, okay, now they work for the foreign auto manufacturers  here, that was to their benefit anyway.

Welocme to the new world of corporate globalization, Nationalists can take a hike, our gubmint sold us out, down the river.

Porter

[Rusty Shepherd CLC 6397]

The french connection could mean that well be seeing the Cadillac Le Car which, to be true to it heritage, would have to have different wheelbases on each side of the car and a folding fabric sunroof as did its brilliant Renault predecessor. The mind boggles:
Sedan Le Car, Coupe Le Car, Le Car dElegance and EldoLeCardo.

[Bruce Reynolds # 18992]

Thankfylly the English arent involved, as it could end up being a Meccano.

At least the tool kit wouldnt have to be very comprehensive, and any child could fix it.   No need for qualified Mechanics.

Bruce,
The Tassie Devil(le),
60 CDV

[Jeff Healey]

From http://www.autoextremist.com TARGET=_blank>www.autoextremist.com (itll be gone tomorrow, though, so go there quick):

Kerkorian + York + Ghosn = Disaster for General Motors.

Detroit. Anyone who actually believed that Kirk Kerkorian and his designated spear-carrier, Jerry York, had benevolent intentions with their "investment" in General Motors had their attitude adjusted Friday afternoon (June 30) when the two roving quick-buck aficionados revealed their "Plan" to GM (and of course, the media) - which amounts to demanding that GM consider a linkage with Renault SA and Nissan. And it was also revealed that the two had even gone so far as to have secret meetings with Carlos Ghosn, the diminutive megalomaniac and dual CEO of Nissan and Renault, who was looking for another ego boost, apparently - to float their proposal and get his buy-in.

Make no mistake - this isnt about creating a new global automotive powerhouse well-equipped to do battle deep into this century, one that will keep Toyota from taking over the world. And this certainly isnt about doing whats best for General Motors and the people who have so much invested in the fortunes of the company. And this in no way, shape or form has anything to do with solidifying Americas manufacturing base or shoring up the economy.

No, this is about flat-out greed, pure and simple.

Its about spiking the stock, roiling the markets and getting the media worked up. Forget the noble intentions espoused by York early on, that he and Kerkorian were just trying to get GM reshaped and on-track for survival so that it could thrive in the future. Forget about all the genuine concern that York spoke about in his speech to the investment community in Detroit last January - that he knew what GM needed to do to become a healthy industry player for years to come, if theyd only listen. No, this is about getting Kerkorians investment going in the right direction as soon as possible - and if they have to set up a logistical nightmare of an "alignment" to get their financial return jacked-up asap, then theyre going to do what they have to do.

And the three "players" involved here just happen to be the Three Amigos of Greed, Unfulfilled Aspirations - and Ego.

Kirk Kerkorian, the multi-billionaire "investor," isnt just about making money. Because if it were just about the money he would have retired to his tennis games long ago, he has so much of it. No, Kerkorian likes to not only make money; he likes to mess with people and companies in the process. His intentions are as transparent as they are malevolent. Its The Game that he thrives on. Period.

And in Jerry York, he has the perfect bagman. Equipped with a brilliant financial mind and a penchant for absorbing and retaining vast quantities of information down to minute detail, York knows the "numbers" side of the car business as well as anyone. He also had a career that, at best, has amounted to unfinished business in the auto industry. And with Kerkorian providing the magical elixir of financial horsepower, York is allowed to flex his cerebral muscles and demonstrate to everyone that he knows his stuff - and that if just given the chance he will prove to the world that he is not only the Greatest Automobile Financial Mind of All Time, but that he could run a car company better than anyone out there too. Unfulfilled aspirations can be a powerful longing, and for York, they have become an obsession that will not be quenched - unless and until he can put his personal stamp on an auto company.

And in Ghosn, Kerkorian and York have discovered a compadre in runaway ego, self-importance and delusions of grandeur. Ghosn is the hatchet man who literally dismantled Nissan and then resurrected it from the ashes. He engineered such a spectacular turnaround for the company through relentless cost cutting that he became a folk hero in Japanese business circles. He was so canonized by the media both here and in Japan that he was given Renault to run too - the only executive in automotive history who has been charged with running two major auto companies at the same time - and the only auto executive in history with the ego to suggest that it was only fitting. But there are two things to keep reminding yourself about Ghosn in the euphoria that surrounds him: 1. There is no art or brilliance involved in cost cutting - rather, its a blunt instrument, an accelerated means to an end. And 2. Ghosn achieved virtually everything he did in the U.S. market because of a product renaissance that was well underway before he even got rolling at Nissan in Tokyo. In short, he did it on the backs of OPT (Other Peoples Talent).

Is it ironic that Nissan is having serious trouble right now in the U.S. market? No, it isnt. Engineering turnarounds through rampant cost cutting is all Ghosn really knows. Once the turnaround is accomplished, Ghosn is clearly out of productive ideas, sort of a one-trick pony with an inflated pedigree. This has been clearly and convincingly demonstrated in his disastrous move to relocate Nissans U.S. headquarters to Nashville from Southern California - its spiritual home - in the interests of accomplishing even more cost cutting. Because in doing so he has decimated the organization and sent the majority of its talent packing. In this regard, he is such an impeccable fit with Kerkorian and York its scary. To Ghosn, the bottom line rules over talent, ability and organizational chemistry every single time. The end justifies the means - especially if it propels his stature as a corporate icon and fuels his already considerable ego even further. And if he gets a crack at running GM, his legacy will be etched in stone.

And so here we are. Three Amigos with a half-baked "Plan" with no real rhyme or reason to it other than to take over GM. And let me be real clear on this next point - there is nothing "alliance" or "partnership" about any of this discussion, either. Kerkorian and York want to be known as the guys who swooped in and took over an American corporate icon and an untouchable piece of Americas industrial history - a heretofore unfathomable notion. And with Ghosn, they have just the front man to drive their "vision" - the guy whom York considers to be the finest automotive executive talent out there - other than himself, of course.

But would this takeover even work? Let me put it this way, if the DaimlerChrysler "merger" is still a work in progress after eight years - with the Germans floundering and stumbling around still trying to figure out how to extract the most out of their counterparts "American" culture while imposing their "superior" way on everything, then attempting to blend three desperately different corporate cultures like GM, Nissan and Renault would be an unmitigated disaster.

Forget about the vaunted synergies and cost savings running through York and Ghosns brains, because were talking about a corporate culture train wreck of gigantic proportions, an organizational nightmare that would take a decade to sort out - and thats probably being wildly optimistic, at best.

So where does that leave Rick Wagoner and his team at GM? Probably pissed-off and fighting mad, for starters. And well they should be. Ive been highly critical of Rick Wagoner in the past, but I also have had to grudgingly acknowledge of late that his maneuverings are on the right track. I am concerned about the pace of events and the looming 2007 contract talks with the crippled UAW, but nonetheless I have to give Rick his due, he is focused on engineering a turnaround in the "right" way - and I see real, demonstrative progress.

When I say the "right" way, I mean that Rick Wagoner has always tried to take into account the constituencies involved and those who are inexorably invested in the future of GM. There are literally hundreds of thousands of people - generations of families - who have made their livelihoods working for General Motors. And the challenges facing GM in health care costs, pensions and global competitiveness are challenges facing corporate America and our nation as a whole. Rick and his team are trying to do whats right for everyone involved the right way. There are no shortcuts or instant fixes available. Its a gradual and more often than not an excruciatingly painful progress.

But for Kerkorian, it has never been about whats right - its only about right now. Its not about whats best for the people or the companies involved - its about whats best for Kerkorian and his neverending quest to accumulate "the zeroes" on his corporate financial statements. The guy loves the smell of financial turmoil in the morning - especially if hes the cause of it. And with York and now Ghosn doing his bidding, Kerkorian is now gloating that he has sent the markets into a tizzy, rattled Rick Wagoner and his teams cage and oh by the way, just so happened to send GMs stock soaring - to his immense benefit and glee.

Is there any real surprise in all of this? No. Kerkorian has never operated any other way throughout his life, thats why when he made this "play" in GM stock, I knew that one day, it would be a big bowl of Not Good for GM. And so here we are.

Kerkorian + York + Ghosn is a formula for disaster for General Motors. I see no reason to sugarcoat that fact. These mercenaries will destroy everything in their path to get what they want - at 89 years old, Kerkorian gets to play The Game a little longer, York gets the respect he has hungered so long for, and Ghosn gets to inflate his runaway ego even further.

And if an American icon gets destroyed in the process, then so be it.