IIPM B&E July Magazine Article: Capt. Kirk-“Beam me up Scotty”
Even a triple whammy with Nissan and Renault would not be able to turnaround the falling GM
Much to the displeasure of GM Chief Rick Wagoner, Kirk Kerkorian (his company Tracinda Corp. holds a mammoth 9.9% stake in ailing General Motors) has been a boisterous man, mainly because he is the driving force behind the current talks for a possible alliance between GM, Nissan and Renault. Obviously, with such a huge sum of money at stake, Kerkorian is reportedly not happy with Wagoner’s painfully slow turnaround strategy. And why not, for GM lost an unbelievable $10.5 billion in the year 2005 alone. The alliance, if it goes through, would have Nissan and Renault picking up 10% stake each in GM. Also, it would bring in the turnaround expert Carlos Ghosn, the man who made the $20 billion indebted Nissan profitable. No doubts, Wagoner is having the worst nightmare of his life, as he’s afraid of losing his position in the company. But more importantly, should such an alliance take place at all?
Much to the displeasure of GM Chief Rick Wagoner, Kirk Kerkorian (his company Tracinda Corp. holds a mammoth 9.9% stake in ailing General Motors) has been a boisterous man, mainly because he is the driving force behind the current talks for a possible alliance between GM, Nissan and Renault. Obviously, with such a huge sum of money at stake, Kerkorian is reportedly not happy with Wagoner’s painfully slow turnaround strategy. And why not, for GM lost an unbelievable $10.5 billion in the year 2005 alone. The alliance, if it goes through, would have Nissan and Renault picking up 10% stake each in GM. Also, it would bring in the turnaround expert Carlos Ghosn, the man who made the $20 billion indebted Nissan profitable. No doubts, Wagoner is having the worst nightmare of his life, as he’s afraid of losing his position in the company. But more importantly, should such an alliance take place at all?
For more on IIPM Publication Article, click here...
Source: (Business& Economy), IIPM; Editor: Arindam Chaudhuri
Source: (Business& Economy), IIPM; Editor: Arindam Chaudhuri
posted by IIPM @ 12:50 AM
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