Best game show. Ever. Really. We won all the friggin' goodies. In our minds. We have no idea how we came to watch the show with such regularity since it was on during the time we were supposed to be at skool. Huh. Perhaps that answers a lot of nagging questions.
Anyway, The Detroit News reports: Renault, GM weigh risk-laden megadeal. What deal? you ask. Is that Renault in the headline? you ask. Why does this new megadeal seem to leave out the specifics of you and Alison? you wonder. We wonder, too. Sigh. But the most important question you ask is, Why in the world is GM still making the Monte Carlo? Have they no taste?
Well, here's the deal: Kirk Kerkorian (who has lost a billion clams buying up GM shares) is gently pushing GM into talks with Renault. But doesn't Renault also own Nissan? you ask. What's up with Renault kicking ass and buying up everyone's company when they can't even sell a car to us good ol' yanks? you demand.
In the letter to GM Chairman and CEO Rick Wagoner, Kerkorian said Renault and Nissan were receptive to the idea of expanding the alliance and acquiring "a significant minority interest" in GM.Expanding the alliance? Man, that doesn't sound doubleplusgood for Wagoner.
Autoblog does some follow up: Nissan responds to GM alliance talk. And our good buddy Robert Farago writes: General Motors Death Watch 83: The End of Days. While we steal his ending here, the whole article is a good read:
In short, the idea that GM would contemplate joining a Renault/Nissan “alliance” is a sign of the General’s desperation, not its ability to seize an international opportunity (whither Fuji, Fiat and Suzuki). Viewed from another angle, depending on what the Franco-Japanese contingent want for their money, you might even say that GM’s breakup has already begun. In any case, it’s yet another one of the bizarre episodes we’ve been predicting for some time: the end of days at GM.
What do we think? With GM selling off just about everything (Fiat, Fuji, GMAC), we have to wonder whether GM is shedding pieces not only raise capital but to make itself appear more attractive to suitors. And, yes, GM had to pay to end the Fiat deal, but that deal is no longer a liability, so we consider that raising capital... just not the money kind of capital.
Do you think there's gonna be a move by Renault/Nissan to gobble up some GM?
That's a picture of Paris. Renault is based near Paris. Paris is better looking than Detroit.
Comments