http://today.reuters.com/stocks/Quot...ENT.XML&rpc=66

Discuss

 

Dont worry, thier not going to start building Chevrolet 350Z's

At the least it means that they have faith in GM if they are willing to buy that much stock. 20% of a company that large is like buying a country.

 

Meanwhile, GM posted its best sales month in 2006...heck, its best in a long time....

Tell me again why GM needs Nissan/Renault?

 

I thought GM shunned their proposition already? Maybe I dreamed it...

 

As quickly as things change, I wouldn't be surprised if it's GM that's thinking about buying Nissan-Renault in in 5 years or so.

As far as what all this means to consumers, it would take years for anything to come of this if it happens. Putting together a deal like this is easily going to take more than a year, then clearing the anti-trust courts is going to take a little time along with getting a stockholder airing and vote. Building a new management structure, some more time. Unless Renault-Nissan got rid of GM management the way Daimler pushed and forced Chrysler's out quickly (over a few years), it's going to be even longer before anything gets through the pipeline.

As far as the consumer in the showroom, it's going to be a few years before anything is cut, a few more years before the results of the merger end up on showrooms.

Pie in the sky guess? It won't be any sooner than 5-8 years before any consumer would be buying a GM-Nissan-Renault engineered and developed vehicle.

 

GM stated their position on 30 June (Tracinda is Kerkorian's company).

http://media.gm.com/servlet/GatewayS...=2&docid=27026

 

How quickly we forget the Fiat Fiasco...

 

I was thinking the same thing. Now is the only window of opportunity for a company like Nissan/Renault to even think about something like this. If GM's turnaround goes as planned, and that is a BIG IF, GM will need to include entry into the Japanese market as part of its plan. GM has not had any success to date in attacking Toyota on their own turf, but I would highly doubt the topic isn't one that is frequently mentioned in boardroom meetings.

GM's return to profitability would give them the financial support to make strategic inroads in Toyota territory. Honda has not been able to break Toyota's stronghold on the Japanese market, and Nissan hasn't even come close. However, a healthy GM might be able to take advantage of what Nissan already has in place, and eploit it to their benefit.