Most Widely Traded 48 Hour Clock: BMW Advises GM
BMW had some advice for GM. Don't do it. According to Reuters, the CEO of the world's largest and most profitable luxury car maker said that his company was successful because it is independent and can make its own product decisions. This is in contrast to the GM/Renault/Nissan plan that would consolidate functions like product development.
BMW may have a point. Although Renault and Nissan have shared top management for a year (Mr. Ghosn), both stocks have had real problems lately. Since May, Nissan's shares are down 22% and Renault's are down 15%. If alliances work so well, what happened to the stock prices?
The CEO of DaimlerChrysler recently pointed out that the benefits of the merger that created that company took eight years to materialize.
In addition, the UAW is almost certainly waiting for the investments to come in from Renault and Nissan, putting money in the bank just before the contract negotiations in 2007.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies that he writes about.
BMW may have a point. Although Renault and Nissan have shared top management for a year (Mr. Ghosn), both stocks have had real problems lately. Since May, Nissan's shares are down 22% and Renault's are down 15%. If alliances work so well, what happened to the stock prices?
The CEO of DaimlerChrysler recently pointed out that the benefits of the merger that created that company took eight years to materialize.
In addition, the UAW is almost certainly waiting for the investments to come in from Renault and Nissan, putting money in the bank just before the contract negotiations in 2007.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies that he writes about.
posted by douglas mcintyre at 12:40 PM
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