Its been announced that Wagoner of GM and Ghosn of Nissan-Renault will talk, and in about six weeks or so, we'll see if GM joins the Nissan-Renault alliance. Light goes on - So that's why Kerkorian was buying so many GM shares!
Its an interesting play. Ghosn needs to expand production because Nissan and Renault are both topped out on capacity and growing, GM has oodles of excess capacity and no-one wants their cars. Using GM's excess is far cheaper than buying new capacity, and the deal is sure to leave GM's union problems squarely on GM. Its upside to the alliance, downside to GM. On the other hand, Nissan and Renault have oodles of design talent, and not enough models to design, GM needs new models. Badly. Desperately. Even in its home market! Its a perfect match.
Power-wise, this screws Wagoner. Ghosn will effectively run the alliance no matter what actual structure is put in place. The market listens to him. The market likes him. He has already proven himself up to the task twice. Wagoner will not give up without a fight. And I think that's why Kerkorian bought all those shares, so that he can punt Wagoner when the deal is done.
Where's my GT-R, Carlos, I'm waiting....
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