Nissan Merger: GM Out, Ford In...?
9/22/06, 03:32 AM
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Nissan Merger: GM Out, Ford In...?
Hmmmmm >>
Sept. 22 (Bloomberg) -- Carlos Ghosn's Renault SA and Nissan Motor Co. may start talks with Ford Motor Co. as prospects fade for a link with General Motors Corp., two people with knowledge of the discussions said.
Executives from the Renault-Nissan team and Ford have been in touch in the past month about exploring a possible link, according to the people, who asked not to be named because the proceedings are private. Former Ford Chief Executive Officer William Clay Ford Jr. initially called Ghosn, CEO of Renault and Nissan, in July to discuss a partnership if the GM-Ghosn talks led nowhere, three people familiar with the matter said last month.
After more than two months of discussions, Renault and Nissan probably won't take an equity stake in GM, people familiar with the companies' talks said this week. GM also hasn't been able to agree with the Renault-Nissan alliance on cooperation in purchasing and vehicle development, the people said. GM isn't willing to give Nissan diesel engines and other technology for pickup trucks, which the Japanese automaker seeks, the people said.
"If GM's terms aren't attractive, Ghosn may check Ford," said Pete Hastings, a fixed-income analyst at Morgan Keegan & Co. in Memphis, Tennessee.
GM and Ford may need an alliance with Renault-Nissan to help rescue their businesses, hurt by Toyota Motor Corp.'s rising sales.
Spokesmen for GM, Renault and Nissan yesterday said negotiations continue and no decisions have been made. Ford spokesman Oscar Suris declined to comment.
Executives from the Renault-Nissan team and Ford have been in touch in the past month about exploring a possible link, according to the people, who asked not to be named because the proceedings are private. Former Ford Chief Executive Officer William Clay Ford Jr. initially called Ghosn, CEO of Renault and Nissan, in July to discuss a partnership if the GM-Ghosn talks led nowhere, three people familiar with the matter said last month.
After more than two months of discussions, Renault and Nissan probably won't take an equity stake in GM, people familiar with the companies' talks said this week. GM also hasn't been able to agree with the Renault-Nissan alliance on cooperation in purchasing and vehicle development, the people said. GM isn't willing to give Nissan diesel engines and other technology for pickup trucks, which the Japanese automaker seeks, the people said.
"If GM's terms aren't attractive, Ghosn may check Ford," said Pete Hastings, a fixed-income analyst at Morgan Keegan & Co. in Memphis, Tennessee.
GM and Ford may need an alliance with Renault-Nissan to help rescue their businesses, hurt by Toyota Motor Corp.'s rising sales.
Spokesmen for GM, Renault and Nissan yesterday said negotiations continue and no decisions have been made. Ford spokesman Oscar Suris declined to comment.
9/22/06, 09:43 AM
#3
This likely has nothing to do with a merger and a lot more to do with the Volvo brand Ghosn has reportedly showed great interest in more than once. For that matter Renault was interested in Volvo long before Ghosn or the Nissan connection came along, and before FOrd bought the brand for that matter, so this is not a flash in the pan by any means.
I keep saying it if only because people dismiss it so readily, but Volvo is prime real estate right now and could likely do a lot more good for Ford in terms of immediate cash than it could in long term profit. 5-10 billion right now would do wonders for Ford, Jaguar, or both...especially considering that Ford currently has a seriously diminished ability to borrow which will drain what assets they do have very quickly outside of a massive cash infusion. And Aston Martin, while a lucrative sale, can only bring so much green to the table.
I keep saying it if only because people dismiss it so readily, but Volvo is prime real estate right now and could likely do a lot more good for Ford in terms of immediate cash than it could in long term profit. 5-10 billion right now would do wonders for Ford, Jaguar, or both...especially considering that Ford currently has a seriously diminished ability to borrow which will drain what assets they do have very quickly outside of a massive cash infusion. And Aston Martin, while a lucrative sale, can only bring so much green to the table.
10/5/06, 02:26 PM
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10/5/06, 02:47 PM
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10/5/06, 03:47 PM
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Hmmm. Well good on them; if Alan Mulally thinks he can manage the turnaround without a merger, then that will certainly eliminate a lot of complications.
It'd be great if Ford could better leverage their existing global assets and platforms...which may be his plan, rather than bringing in outside influences. Frankly, worldwide Ford has enough resources that this should be doable.
It'd be great if Ford could better leverage their existing global assets and platforms...which may be his plan, rather than bringing in outside influences. Frankly, worldwide Ford has enough resources that this should be doable.
10/5/06, 03:50 PM
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A merger is probably not going to happen but an "alliance" could...
Ford has collaborated with Nissan before on the Mercury Villager/Nissan Quest and the Euro Ford Maverick SUV...
Ford has collaborated with Nissan before on the Mercury Villager/Nissan Quest and the Euro Ford Maverick SUV...
10/5/06, 05:30 PM
#12
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I don't want any mergers. The last thing I want is to be driving a Ford sedan with my foot connected to a Nissan 4 banger. If I wanted a Nissan, I'd buy a Nissan.
10/6/06, 03:31 PM
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Mulally's not a merger/alliance guy. He doesn't mind outsourcing or heavy contracting, but he believes that you have to have one Company calling the shots in the end. Thats how Boeing Airplanes works, lots of feeder companies but Boeing holds the reins.
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