Kerkorian urges GM alliance with Renault/Nissan

30th June 2006, Comments 0 comments

WASHINGTON, June 30, 2006 (AFP) - Billionaire Kirk Kerkorian, who made waves by taking a stake last year in General Motors, is urging the struggling auto giant to forge an alliance with France's Renault and its Japanese partner Nissan.

WASHINGTON, June 30, 2006 (AFP) - Billionaire Kirk Kerkorian, who made waves by taking a stake last year in General Motors, is urging the struggling auto giant to forge an alliance with France's Renault and its Japanese partner Nissan.

In documents filed Friday with the US Securities and Exchange Commission, Kerkorian's holding company Tracinda indicated that it had sent letters to GM chairman Rick Wagoner and Carlos Ghosn, the top executive of both Renault and Nissan.

In the letter to Wagoner, Tracinda secretary-treasurer Anthony Mandekic said: "It is our understanding that Renault SA and Nissan Motor Co., Ltd. are receptive to the concept of including General Motors Corporation in their partnership-alliance and purchasing from General Motors a significant minority interest in the company."

A separate letter to Ghosn and Renault chairman Louis Schweitzer indicated that Tracinda had held discussions with Ghosn on the possibility of a global alliance.

"As we recently discussed with Mr. Ghosn, Tracinda believes that General Motors, Renault and Nissan should explore a three-company, partnership-based alliance," the letter said.

"Tracinda believes that such a global alliance has the potential to materially strengthen the competitive positions of all three companies in the increasingly challenging worldwide automotive industry, with the attendant benefits accruing to each company and its respective employees and shareholders."

Ghosn became Japan's pioneering foreign manager when he turned Nissan around from near-death in 1999 to being the world's most profitable car manufacturer in 2003.

A year ago, Ghosn took the post of chief executive at French automaker Renault, which owns a 44.4 percent stake in Nissan, while remaining president and chief executive of Nissan.

Copyright AFP

Subject: French News

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