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Ghosn is talking to the wrong company

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This just shows you how bad the talking heads are:

Does Mr. Crain forget about Jac Nasser?

See my highlights in bold.


Ghosn is talking to the wrong company

Automotive News / August 3, 2006 - 10:17 am




Sure, we know who started the conversation. And, yes, Jerry York is a member of the General Motors board.

Right now, Renault/Nissan and GM are trying to determine whether an alliance would be a good thing for them.

But we all know the answer. GM will figure out why, on every level, it's not a good idea to have any sort of alliance with Renault/Nissan.

We knew that from the beginning. GM executives don't want anybody else getting involved with their company, regardless of what happened with Fiat. And any study they conduct will point out the impossibilities of such an alliance. But they will have gone through the motions, and their critics should be silenced.

Meanwhile, if Carlos Ghosn is really interested in an alliance with an American company, he should talk with Bill Ford. That's an alliance that would make more sense than one with GM.

After all the terminations and buyouts, Ford Motor Co. is thin on management talent and can use help in many areas. There are plenty of places around the world where an alliance could be complementary.

We wouldn't want to misquote him, but Bill Ford did not seem averse to an alliance with other automobile companies.

A matchup among Ford, Renault and Nissan makes more sense on just about any level. The corporate structure of Ford Motor would remain intact, and that's very important to William Clay Ford Jr. Ford Motor has some strong distribution networks in the United States and around the world that could be strengthened with such an affiliation.

Ford Motor faces a long, dry spell until it has new products in the pipeline, and it's uncertain how those new products will do in stemming the slide in U.S. market share.

Last month, Toyota Motor Sales U.S.A. outsold Ford Motor Co. in the United States. That would have been unheard of just a few short years ago.

There is no doubt that Ford Motor could use the skills and determination of a Carlos Ghosn. It wouldn't necessarily change the composition of the executive lineup, but it would be an opportunity for Ford to take advantage of Ghosn's management style.

It probably won't be long before GM says thanks, but no thanks, to Ghosn. Maybe after a suitable cooling-off period, there could be another dinner between a couple of interested executives.

Nothing in this business would surprise me anymore.

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Sorry I didn't like this deal with GM and I wouldn't like it for Ford.

Ford is an American asset and if an alliance is needed then Honda is the right partner.

No overlapping products and Honda has no desire to take over the world!!!

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