![[Valid Atom 1.0]](valid-atom.png "Validate my Atom 1.0 feed")
* Global Motors II - USA - Skepticism over GM megadeal mounts
Analysts raise questions about viability of global alliance with Renault-Nissan
Detroit,Mich,USA -The Detroit News, by Bill Vlasic and Christine Tierney -6 July 2006: -- While a high-level team at General Motors Corp. races to study a potential GM-Renault-Nissan alliance, questions are being raised about the viability of the proposed three-way partnership... GM's board will meet Friday to consider a plan by billionaire investor Kirk Kerkorian to link GM with Renault SA of France and Japan's Nissan Motor Co. -- whose boards already have approved entering formal talks with GM... As GM Chief Financial Officer Fritz Henderson and the automaker's investment banks rush to critique the idea before GM's board meeting, the wisdom of a trilateral deal is being questioned in the United States, France and Japan... Several Wall Street analysts have already raised doubts about tying GM to Renault-Nissan... In France, a top official of the government -- which represents the state's 15 percent stake in Renault -- was quoted by news agencies as urging caution before tying Renault-Nissan to struggling GM, which lost $10.6 billion in 2005... Japanese auto analysts were also questioning whether Ghosn could solve GM's problems... In a report illustrating how difficult it is to generate tangible benefits from an alliance, Merrill Lynch's Asia analyst Grace Pak says the potential savings in China will be limited by the fact that Renault-Nissan and GM have different Chinese venture partners, with different suppliers...
posted by Unknown @ 12:24 PM
0 Comments:
Post a Comment
<< Home