Ford offers talks on possible alliance with Nissan-Renault
08-24-2006, 09:59 AM
#1
Registered User
Thread Starter
Join Date: Mar 2001
Location: The Golden State
Posts: 13,711
Ford offers talks on possible alliance with Nissan-Renault
Bill Ford to Ghosn: Let's talk alliance
Automaker interested in possible Renault-Nissan deal if GM talks falter.
Bryce G. Hoffman / The Detroit News
DEARBORN -- As Ford Motor Co. struggles to hold on to its position as America's No. 2 automaker, Chairman and CEO Bill Ford Jr. is signaling a new willingness to discuss an alliance with another car company.
Bill Ford recently called Carlos Ghosn, the celebrated CEO of Nissan Motor Corp. and Renault SA, to say he is interested in talking if Ghosn's proposed tie-up with General Motors Corp. fails to materialize, people familiar with the situation said Wednesday.
A Ford spokesman would not confirm the overture to Ghosn, first reported Wednesday in the Wall Street Journal, but company sources said the call was part of an effort to explore potential moves Ford could make.
"People are talking to each other more these days since the Nissan-GM talk started," said one person familiar with the effort. "If we are entering a period of consolidation, you don't want to be left without a chair when the music stops ... We are in a position of evaluating our options."
The person stressed that any discussions are very preliminary and won't necessarily lead anywhere.
In an interview with BusinessWeek magazine that was posted on the magazine's Web site Wednesday evening, Bill Ford said he would not discuss any specific alliance, but said that he is not ruling anything out.
"There are a lot of players out there gaming these things out, and we are, too," he said. "If we find someone with common interest, and it's good for all of us, we would look at that."
The GM-Nissan-Renault discussions were initiated by GM investor Kirk Kerkorian, who first proposed an alliance between the three automakers in June.
GM Chairman and CEO Rick Wagoner agreed to begin a formal study of the possible alliance in July -- a process that is expected to conclude in October.
Bill Ford's discussion with Ghosn comes as the automaker struggles to stabilize its North American automotive operations in the face of declining sales and mounting financial woes.
Last month, Toyota Motor Corp. sold more cars and trucks in the United States than Ford for the first time, coming in second to GM.
Meanwhile, Ford posted a second-quarter loss of $254 million, announced one of the largest vehicle recalls ever and said it would slash fourth-quarter production by 21 percent -- its biggest production cut in decades.
Ford also has hired Kenneth Leet, a mergers-and-acquisitions expert, who has been charged with taking a hard look at all of the company's brands with an eye to selling off some assets and exploring possible alliances.
Leet has already begun meeting with Ford executives to discuss both of those strategies.
Analysts say an alliance with Renault-Nissan could help Ford, and many think it makes more sense than a tie-up with a reluctant GM.
On news of Bill Ford's outreach to Ghosn, Ford shares rose 34 cents Wednesday, or 4.6 percent, to close at $7.76 on the New York Stock Exchange.
But not everyone on Wall Street sees such a collaboration as a silver bullet.
"We see alliance-related upside in Ford shares in only one case -- if it includes a management role for Renault-Nissan CEO Carlos Ghosn," said Robert Barry of Goldman Sachs.
"But GM seems to have first dibs on an alliance with Ghosn and (Renault-Nissan), and we suspect influential GM shareholder Kirk Kerkorian will push hard to make sure if an alliance is meant to be that it happens with GM.
"We have doubts that Ghosn would play a significant management role in any new alliance, given comments he has made publicly in that regard Ghosn has his hands full restructuring Renault and must also help engender new momentum at recently flagging Nissan, where quality problems and falling U.S. sales have hurt results."
In July, Ghosn told The Detroit News that he is open to considering other alliances if a merger with GM fails to gel.
Ghosn has never ruled out a deal with Ford. However, some in investment banking circles contend that no one will deal with Ford unless the family agrees to dilute its voting rights to 20 percent and hires an experienced CEO to take over day-to-day running of the company from Bill Ford.
The Ford family controls 40 percent of the automaker through its exclusive ownership of Class B super-voting shares. Bill Ford told BusinessWeek that the Ford family will not be an impediment to the company's restructuring.
"Look, whatever is required for the recovery, the family will not stand in the way," he said. "All our net worths are tied up in this. The family will not be a limiting factor to any plan that moves us forward."
But Ford also said the family does not believe it needs to rethink its ownership stake.
"We have been part of this company for 100 years," he said. "We've been there in good times and bad times. And that issue has never been raised. I'm not sure what it would accomplish."
http://www.detnews.com/apps/pbcs.dll...608240387/1148
Automaker interested in possible Renault-Nissan deal if GM talks falter.
Bryce G. Hoffman / The Detroit News
DEARBORN -- As Ford Motor Co. struggles to hold on to its position as America's No. 2 automaker, Chairman and CEO Bill Ford Jr. is signaling a new willingness to discuss an alliance with another car company.
Bill Ford recently called Carlos Ghosn, the celebrated CEO of Nissan Motor Corp. and Renault SA, to say he is interested in talking if Ghosn's proposed tie-up with General Motors Corp. fails to materialize, people familiar with the situation said Wednesday.
A Ford spokesman would not confirm the overture to Ghosn, first reported Wednesday in the Wall Street Journal, but company sources said the call was part of an effort to explore potential moves Ford could make.
"People are talking to each other more these days since the Nissan-GM talk started," said one person familiar with the effort. "If we are entering a period of consolidation, you don't want to be left without a chair when the music stops ... We are in a position of evaluating our options."
The person stressed that any discussions are very preliminary and won't necessarily lead anywhere.
In an interview with BusinessWeek magazine that was posted on the magazine's Web site Wednesday evening, Bill Ford said he would not discuss any specific alliance, but said that he is not ruling anything out.
"There are a lot of players out there gaming these things out, and we are, too," he said. "If we find someone with common interest, and it's good for all of us, we would look at that."
The GM-Nissan-Renault discussions were initiated by GM investor Kirk Kerkorian, who first proposed an alliance between the three automakers in June.
GM Chairman and CEO Rick Wagoner agreed to begin a formal study of the possible alliance in July -- a process that is expected to conclude in October.
Bill Ford's discussion with Ghosn comes as the automaker struggles to stabilize its North American automotive operations in the face of declining sales and mounting financial woes.
Last month, Toyota Motor Corp. sold more cars and trucks in the United States than Ford for the first time, coming in second to GM.
Meanwhile, Ford posted a second-quarter loss of $254 million, announced one of the largest vehicle recalls ever and said it would slash fourth-quarter production by 21 percent -- its biggest production cut in decades.
Ford also has hired Kenneth Leet, a mergers-and-acquisitions expert, who has been charged with taking a hard look at all of the company's brands with an eye to selling off some assets and exploring possible alliances.
Leet has already begun meeting with Ford executives to discuss both of those strategies.
Analysts say an alliance with Renault-Nissan could help Ford, and many think it makes more sense than a tie-up with a reluctant GM.
On news of Bill Ford's outreach to Ghosn, Ford shares rose 34 cents Wednesday, or 4.6 percent, to close at $7.76 on the New York Stock Exchange.
But not everyone on Wall Street sees such a collaboration as a silver bullet.
"We see alliance-related upside in Ford shares in only one case -- if it includes a management role for Renault-Nissan CEO Carlos Ghosn," said Robert Barry of Goldman Sachs.
"But GM seems to have first dibs on an alliance with Ghosn and (Renault-Nissan), and we suspect influential GM shareholder Kirk Kerkorian will push hard to make sure if an alliance is meant to be that it happens with GM.
"We have doubts that Ghosn would play a significant management role in any new alliance, given comments he has made publicly in that regard Ghosn has his hands full restructuring Renault and must also help engender new momentum at recently flagging Nissan, where quality problems and falling U.S. sales have hurt results."
In July, Ghosn told The Detroit News that he is open to considering other alliances if a merger with GM fails to gel.
Ghosn has never ruled out a deal with Ford. However, some in investment banking circles contend that no one will deal with Ford unless the family agrees to dilute its voting rights to 20 percent and hires an experienced CEO to take over day-to-day running of the company from Bill Ford.
The Ford family controls 40 percent of the automaker through its exclusive ownership of Class B super-voting shares. Bill Ford told BusinessWeek that the Ford family will not be an impediment to the company's restructuring.
"Look, whatever is required for the recovery, the family will not stand in the way," he said. "All our net worths are tied up in this. The family will not be a limiting factor to any plan that moves us forward."
But Ford also said the family does not believe it needs to rethink its ownership stake.
"We have been part of this company for 100 years," he said. "We've been there in good times and bad times. And that issue has never been raised. I'm not sure what it would accomplish."
http://www.detnews.com/apps/pbcs.dll...608240387/1148
08-24-2006, 10:03 AM
#2
Registered User
Join Date: Jan 1999
Location: Panhandle of West Virginia
Posts: 1,548
Re: Ford offers talks on possible alliance with Nissan-Renault
08-24-2006, 10:09 AM
#3
Super Moderator
Join Date: Jul 2005
Location: Okemos, MI
Posts: 9,485
Re: Ford offers talks on possible alliance with Nissan-Renault
I don't understand why more people don't see that Kerkorian is just in it for money, and doesn't have anyone's best interests but his own in mind. The GM version of this merger would help Kerkorian, Ghosn, Renault, and Nissan. GM's shareholders would benefit in the short term, but in the long run it would only hurt GM.
I don't think GM will do it -- I think Wagoner and crew understand, and while Kerkorian has lots of influence, I don't think he has enough to make this happen.
As for Ford, I'm not as familiar with the business side of their operation. Maybe this could benefit them. It certainly seems that way, given that it was Ford making the suggestion. I wouldn't bet on it, though.
I don't think GM will do it -- I think Wagoner and crew understand, and while Kerkorian has lots of influence, I don't think he has enough to make this happen.
As for Ford, I'm not as familiar with the business side of their operation. Maybe this could benefit them. It certainly seems that way, given that it was Ford making the suggestion. I wouldn't bet on it, though.
08-24-2006, 12:05 PM
#4
Registered User
Join Date: Feb 1999
Location: northeast Miss.
Posts: 2,887
Re: Ford offers talks on possible alliance with Nissan-Renault
The media has had their magnifying glass on GM's anthill for a while. Now seeing that it wont burn, when do they take more stake in Ford's future?
08-24-2006, 12:37 PM
#5
Registered User
Join Date: Dec 1969
Location: Southern California (SoCal)
Posts: 1,912
Re: Ford offers talks on possible alliance with Nissan-Renault
Here's a new article which interviewed Bill Ford about possible alliances and etc.
http://businessweek.com/autos/conten...eek+exclusives
http://businessweek.com/autos/conten...eek+exclusives
Have any auto makers proposed an alliance with Ford yet? How do you feel about the prospect? Do you have a preference toward an alliance that would result in another company with an equity stake in Ford? Or just joint-venture?
No auto maker has approached us yet. And no, I don't have a preference [to one kind of deal vs. another]. But we're open to all options. I have had a number of people propose virtually every auto maker to me as a potential alliance partner. The GM-Nissan-Renault discussions have gotten everybody in the industry thinking we ought to be talking to somebody.
I bet every car company has a war room on this. There are two kinds of alliances: one in which two companies with a lot of overlap eliminate duplication, and another in which you have full-blown sharing of vehicle platforms. No alliance will deliver everything. We have to approach each opportunity with the idea of…O.K., what are we getting out of this? Expanded manufacturing footprint? Platform sharing? Geographic coverage? Is it all those things?
[Alliances] take a long time to work through. And often, when you look at them in the beginning, the perceived advantages look easy on paper. Sometimes they're difficult to capture in reality. I listen to every [alliance idea], because we truly are looking at everything. We have been strategic in our alliances—like an engine-sharing deal with PSA, a transmission-development deal with GM (GM ), and our one-third stake in Mazda—because we have gotten something good out of each one.
Are you considering selling off or folding perennially problematic brands like Lincoln and Jaguar?
We haven't concluded what we are going to do yet…but [our turnaround strategy] certainly doesn't preclude that.
Outsiders are suggesting that maybe Ford should just be a three-brand company, perhaps pared to just Ford, Volvo, and Land Rover. What do you think?
Business as usual isn't the model for us to have going. I'm not ready to get into the specifics yet, but yes, we're looking at radical changes.
No auto maker has approached us yet. And no, I don't have a preference [to one kind of deal vs. another]. But we're open to all options. I have had a number of people propose virtually every auto maker to me as a potential alliance partner. The GM-Nissan-Renault discussions have gotten everybody in the industry thinking we ought to be talking to somebody.
I bet every car company has a war room on this. There are two kinds of alliances: one in which two companies with a lot of overlap eliminate duplication, and another in which you have full-blown sharing of vehicle platforms. No alliance will deliver everything. We have to approach each opportunity with the idea of…O.K., what are we getting out of this? Expanded manufacturing footprint? Platform sharing? Geographic coverage? Is it all those things?
[Alliances] take a long time to work through. And often, when you look at them in the beginning, the perceived advantages look easy on paper. Sometimes they're difficult to capture in reality. I listen to every [alliance idea], because we truly are looking at everything. We have been strategic in our alliances—like an engine-sharing deal with PSA, a transmission-development deal with GM (GM ), and our one-third stake in Mazda—because we have gotten something good out of each one.
Are you considering selling off or folding perennially problematic brands like Lincoln and Jaguar?
We haven't concluded what we are going to do yet…but [our turnaround strategy] certainly doesn't preclude that.
Outsiders are suggesting that maybe Ford should just be a three-brand company, perhaps pared to just Ford, Volvo, and Land Rover. What do you think?
Business as usual isn't the model for us to have going. I'm not ready to get into the specifics yet, but yes, we're looking at radical changes.
Last edited by johnsocal; 08-24-2006 at 02:10 PM.
08-26-2006, 03:24 PM
#6
Registered User
Join Date: Jul 2002
Location: The Land of Pleasant Living
Posts: 1,581
Re: Ford offers talks on possible alliance with Nissan-Renault
This guy (Ford) is a knucklehead! Getting in the sack with the french is not good for GM, and its not good for Ford.......period. The one thing in that article that made me feel better, is that nissan is not doing well. I pray Americans pull their heads from their ***, and put these guys (nissan) out of business. How can people be so damned shortsighted! 
Boycott Tracinda everyone! Many Americans are participating in a boycott of french goods (and with damn good reason)........do we really want GM or Ford to be, french goods? If it happens, it will be a sad day, and I WILL build my own damn Camaro. All with swap meet parts.
Boycott Tracinda everyone! Many Americans are participating in a boycott of french goods (and with damn good reason)........do we really want GM or Ford to be, french goods? If it happens, it will be a sad day, and I WILL build my own damn Camaro. All with swap meet parts.
08-27-2006, 09:55 AM
#8
Registered User
Join Date: Jul 2002
Location: The Land of Pleasant Living
Posts: 1,581
Re: Ford offers talks on possible alliance with Nissan-Renault
Originally Posted by Good Ph.D
Im not to worried about this. What I am worried about is how Ford is so desperate they are considering it.
08-27-2006, 12:33 PM
#9
Registered User
Thread Starter
Join Date: Mar 2001
Location: The Golden State
Posts: 13,711
Re: Ford offers talks on possible alliance with Nissan-Renault
Here Ford is talking about:
* giving up premium brands
* merging with Nissan/Renault
* giving up the family's 40% voting block
* selling off a portion of Ford Financial
* buying up outstanding shares and take the company private
all things that weaken and shring the company (and it's profit making potential).
Ford, like GM, has a number of great cars.... in other markets. But while GM is actually going global, and has (mostly) given up the NIH (Not Invented Here) syndrome, Ford has been ready to self destruct rather than use it's resources from outside the US.
Then again, Bill Ford himself once said he'd "burn the place down" before merging with Toyota. I guess Nissan is a different story.
* giving up premium brands
* merging with Nissan/Renault
* giving up the family's 40% voting block
* selling off a portion of Ford Financial
* buying up outstanding shares and take the company private
all things that weaken and shring the company (and it's profit making potential).
Ford, like GM, has a number of great cars.... in other markets. But while GM is actually going global, and has (mostly) given up the NIH (Not Invented Here) syndrome, Ford has been ready to self destruct rather than use it's resources from outside the US.
Then again, Bill Ford himself once said he'd "burn the place down" before merging with Toyota. I guess Nissan is a different story.
Thread
Thread Starter
Forum
Replies
Last Post
SpraydZ
Parts For Sale
42
06-07-2016 01:44 PM
oldschool
Parts For Sale
16
02-09-2016 09:21 PM
NewsBot
2010 - 2015 Camaro News, Sightings, Pictures, and Multimedia
0
12-03-2014 12:30 PM