Nissan approves talking – TOKYO (AFX) – Nissan Motor Co said its board has given the go-ahead for talks with General Motors Corp with a view to a possible alliance with the US carmaker.
General Motors Corp. gained in Europe after Banc of America raised its recommendation on the shares, citing the likelihood Renault SA and Nissan Motor Co. will invest in the automaker.
The board of French carmaker Renault was set to meet late on Monday to discuss an audacious plan for a tie-up with General Motors Corp that would create a global auto giant.
GM’s board were meeting last Friday when the announcement was first made, but nothing’s come from that yet.
The whole thing seems rather nutty to me, but that’s just me.
Some Euro analysts see things the same though:
“We struggle to see short-to medium-term synergies for both sides,”….
….”Renault-Nissan already has all of the purchasing and engineering scale it can possibly use. Investing in GM would see management distracted for years. GM faces difficult legacy, labor, brand and distribution challenges that may not be solved by target-setting management,”