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WSJ speculates about Renault-Nissan taking stake in GM

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Filed under: GM, Nissan, Earnings/Financials, Renault, Rumormill

ghosn-hands-up-gesture-630.jpg

Rumors that Renault-Nissan may be interested in taking on a third head have popped once again, with the would-be merger candidate this time being General Motors. Huh, sounds familiar, doesn't it? In actuality, The Wall Street Journal is really just speculating on the possible effects of such a deal, and it's done so with all kinds of number crunching and colorful pie charts.

The lone quote from Renault-Nissan head Carlos Ghosn that seems to have sparked the article: "The name of the game is scale and co-investments and sharing technologies." That's a common thread from Ghosn and most recently stated at the Geneva Motor Show earlier this month.

After reading through the article, it seems possible that such a merger could make sound business sense for the Franco-Japanese automaker for a couple of reasons. First is Ghosn's seemingly insatiable appetite for large-scale synergies. Second, the two automaker's sales footprints appear to be rather complimentary. Finally, Renault-Nissan has enough cash reserves and holdings on hand that it could afford to purchase a 10-percent stake in the American automaker when it hopefully goes public again in early 2011.

So, does any of this have an actual chance of happening? We have absolutely no idea, but that hardly seems to matter - we're always up for a little speculation when it comes to our favorite topic of conversation. As always, questions, comments and snide remarks can be left in "Comments." What say you? Does Renault-Nissan-General Motors have a nice ring to it?

[source: The Wall Street Journal | Image: Raveendran/AFP/Getty]

WSJ speculates about Renault-Nissan taking stake in GM originally appeared on Autoblog on Fri, 12 Mar 2010 19:01:00 EST. Please see our terms for use of feeds.

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They are just looking for a dance partner. They also want GM technology or the aboility to get some of it.

In the future many companies will have to have a dance partner or die. Development cost are so high anymore few can do it alone. The question is smaller companies like Honda and BMW will have some hard decisions to make in the future as they will either have to find a willing partner to share or sell parts of themselves off to share.

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They are just looking for a dance partner. They also want GM technology or the aboility to get some of it.

In the future many companies will have to have a dance partner or die. Development cost are so high anymore few can do it alone. The question is smaller companies like Honda and BMW will have some hard decisions to make in the future as they will either have to find a willing partner to share or sell parts of themselves off to share.

As I had said before when Carlos the Jackal wanted stakes in GM back in 2008-09 or was speculated for being the CEO of GM. GM does not stand to benefit in any ways. It would be nothing more than a parasitic marriage sucking blood out of GM.

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Not that I want it to happen, but a GM,BMW,Honda alliance would be a force to be reckoned with.

This idea - not so much.

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Not that I want it to happen, but a GM,BMW,Honda alliance would be a force to be reckoned with.

This idea - not so much.

Agree on that. May be when GM is successful again it can poach on BMW. :P

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They are just looking for a dance partner. They also want GM technology or the aboility to get some of it.

In the future many companies will have to have a dance partner or die. Development cost are so high anymore few can do it alone. The question is smaller companies like Honda and BMW will have some hard decisions to make in the future as they will either have to find a willing partner to share or sell parts of themselves off to share.

like front drive bmw 'ultimate driving machines' and 3 cylinder motors.....

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like front drive bmw 'ultimate driving machines' and 3 cylinder motors.....

You mean the sub 1 series BMW FWD due in 2012-13 they are already working on? What are they going to call it a .5 Series BMW?

Heck Aston Martin just showed a Nissan based FWD micro in Europe. They all are running scared of the future. The Green movment in Europe is hitting much harder than the new CAFE regs here are.

I never did like or have bene impressed with Carlos.

As for a working agreement with BMW, GM and Honda. That would be nice as long as it was a working agreement. They all have something to offer each other and do not have to own one another.

Edited by hyperv6
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After VAZ this is nothing but gravy. Mr. Bean up there has been on this horse for a long time now.

One car for all the people. Any color you like as long as it is green. :toiletpaper: Or is that green?

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GM's IPO will be interesting, and depending on what the stock is priced at, I could definitely see another auto maker buying a big stake. GM might only be valued at $20-30 billion at the time of the IPO, Nissan could buy at 10% stake easily. The door would also be opened up to Kirk Kerkorian type investors that want to buy a huge chunk of the company, and then try to break it up or sell off pieces, see the stock price go up and dump it after a year.

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Not that I want it to happen, but a GM,BMW,Honda alliance would be a force to be reckoned with.

This idea - not so much.

Kind of like the 'Global Motors' idea Lee Iacocca floated 30 years ago..one from NA, one from Japan, one from Europe.

Fiat/Chrysler today could achieve that if they increased their Mitsubishi ties.

Ford sort of had such an alliance like that for years w/ Mazda and the PAG...

Edited by Cubical-aka-Moltar
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