BMW BLASTS THE "RENAULT ALLIANCE"

According to Reuters and Automotive News, "BMW CEO Helmut Panke warned that mergers and alliances such as a possible General Motors-Renault-Nissan link only provide short-term benefits at best." Panke, who heads the largest and most profitable luxury vehicle company argues that "In the integration process, the brand's profile gets lost."

Panke, of course, touts BMW's independence as the key to its success. And obivously, Panke has no interest in BMW becoming the target of a larger suitor.

However, history . . . even BMW's own . . . doesn't always bear out Panke's dire prediction.

For example, BMW's failed rescue of Rover Group left it with the MINI franchise. Although MINI now uses various Bavarian bits and pieces under the skin, few would suggest that its "brand profile" is "lost" or that MINI would be better off on its own.

And Speedzzter would be remiss not to point out that the "biggest and most luxurious BMW" is the Goodwood-built, quintessentially British Rolls-Royce.

See http://www.bmwworld.com/models/new/rr.htm

Would Panke argue that Rolls "lost" its brand profile as it was being passed around between Vickers and Volkswagen AG? (although perhaps the current "harsh" styling could be blamed on the Germans . . . .)

Moreover, the most dominant days of GM were when its various divisions were in "alliance and partnership" on certain behind-the-scenes functions, but had a modest amount of autonomy on features creating real market distinctions (albeit in Alfred Sloan's hierarchy of nameplates). GM's decline accelerated when the segment overlaps and the sharing became too obvious to its customers.

The Kerkorian - Tracinda proposal for the new "Renault Alliance" between GM, Nissan and Renault isn't inherently the path toward Roger Smith-style badge-engineered blandness. Instead, it recognizes that some of the value added to vehicles which isn't essential in establishing brand identity can be shared without losing "brand profile."

GHOSN SAYS "RENAULT ALLIANCE" REQUIRES A FINANCIAL STAKE IN GM

Recognizing the obvious, Carlos Ghosn told Le Monde that a buying a stake in GM is the only way the proposed "Renault Alliance" makes sense. He further said "We have to overcome the optimism of some and the skepticism of others in order to evaluate objectively the potential of an alliance."

Objective evaluation of the "deal" -- now that's a mature way of looking at it. Hardly the mark of someone who allegedly is just "Mr. Ego" or looking for a quick escape hatch, now is it?