First, the GMRN thing….
GM’s board had their scheduled meeting this morning. What was surprising about it was the brevity, lasting just over an hour. One could almost conclude that the outcome was known well in advance of the meeting being held 😉
From the Detroit News:
General Motors’ board of directors today endorsed preliminary discussions with Renault SA and Nissan Motor Co. about a three-way alliance.
It’s the next move in a high-stakes chess match over the future of GM, and sets the stage for a pivotal meeting on July 14 between Wagoner and Carlos Ghosn, the chief executive of Renault and Nissan…..
….GM Chairman and Chief Executive Rick Wagoner will lead the talks.
“General Motors has a lot of experience with different types of alliances and some have provided significant benefits to GM’s competitive position and financial strength,” Wagoner said in a statement. “We will enter into discussions with the managements of Renault and Nissan with an open mind – eager to hear their ideas of how an alliance between our companies might work to our mutual benefit. Given the complexity of any potential relationship, it has to be carefully considered on its merits before coming to any conclusion.”
As far as opinion goes, Greg sums things up quite nicely in comments. Recommended read.
Another Detroit News article worth a read is Daniel Howes’ “We want to know, Kerkorian, what’s your vision for GM?”
It’s well known that China is becoming a fertile market for car sales, and the mid-to-upper end of the market is no exception. BMW sold 17,000 or so vehicles there last year.
Under the deal, Shanghai GM will take charge of Saab’s operation in China including management of its brand, models lineups, car components and after-sales service.
“Shanghai GM has really demonstrated their capability in the Chinese market with their existing wide brand portfolio, and they can help us expand the dealer network and know our customers better,” said Jan-Ake Jonsson, Saab managing director.
They’re hoping to double sales there “in the short term”.
The new generation of Saab-owning family?