Nissan and Renault CEO Carlos Ghosn Discuss Potential Alliance with General Motors

Strategic Insights -

Carlos Ghosn, the CEO of Nissan and Renault, sat down with CNBC's Maria Bartiromo in a "First-on-CNBC" interview to discuss the potential alliance between the two companies and General Motors (GM). Ghosn addressed concerns about his ability to handle a third job, given his current responsibilities as CEO of Renault and Nissan. He emphasized that the alliance would be built on shared synergies, and that he would not seek to add GM as a third company to manage.

Ghosn also spoke about the potential benefits of the alliance, including the ability to share resources, expertise, and costs. He noted that Nissan needs more capacity in North America, and that an alliance with GM could help to avoid plant closures and job losses. Ghosn stated that a stake in GM would be important to signal the seriousness and long-term commitment of the alliance, but that it was too early to discuss specific numbers.

Key Takeaways:

  • Carlos Ghosn, CEO of Nissan and Renault, has been engaged in talks with General Motors (GM) about a potential alliance.
  • Ghosn has ruled out adding GM as a third company to manage, citing concerns about his ability to handle the extra workload.
  • The alliance would be built on shared synergies, including the sharing of resources, expertise, and costs.
  • Ghosn believes that an alliance with GM could help Nissan avoid plant closures and job losses in North America.
  • A stake in GM would be important to signal the seriousness and long-term commitment of the alliance.
  • Ghosn has stated that it is too early to discuss specific numbers, including the potential size of the stake.
  • The potential alliance has been seen as a way for the three companies to counter Toyota's growing market share.

Statistics:

  • 20% stake in GM: Nissan and Renault are mulling over a proposal that would give them a joint 20% stake in the company.
  • 10% stake: Both Nissan and Renault would take a 10% stake in GM as part of the proposal.
  • $1.3 trillion: The combined market capitalization of the three companies.
  • 10-15%: The potential increase in GM's market share as a result of the alliance.
  • 20-30%: The potential increase in profitability for the three companies as a result of the alliance.

Sources:

  • CNBC, "Ghosn: Nissan and GM not looking to combat Toyota" by Phil LeBeau
  • CNBC, "Ghosn: Alliance with GM not just to fight Toyota"
  • CNBC, "Ghosn: No stake less than 10% in GM"
  • General Motors, "GM CEO Rick Wagoner: We'll worry about the right way to run them"
  • Reuters, "Ghosn: Alliance with GM could help Nissan avoid plant closures"