Tuesday, July 11, 2006

FORD-RENAULT-NISSAN?

Christine Tierney opines in the 11 Jul 06 edition of the Detroit News:

"How about Ford-Renault-Nissan?"
"Chemistry with Ghosn, complementary lineup could make more sense than alliance with GM."

http://www.detnews.com/apps/pbcs.dll/article?AID=/20060711/AUTO02/607110378/1148/AUTO01

Tierney's piece is based on comments from auto analyst Robert Hinchliffe of UBS Securities.

Tierney points out Renault's earlier interest in the Volvo car division and Ford's better track record with international link-ups (Jaguar excluded). The story also repeats the rumors that Carlos Ghosn was unsuccessfully tapped by William Clay Ford, Jr. for a top slot in the Glass House.

Tierney points out the large, obvious sticking point to any "alliance" with FoMoCo--the huge, controlling block of shares held by Ford family members.

Still, in any consolidated market, FoMoCo will need a stronger Japanese partner than Mazda. And Ford's depressed share prices make grabbing a minority interest in the company--which is probably necessary to insure success of any alliance--very attractive.

A Ford-Renault-Nissan alliance would assume the number one spot in world vehicle production, albeit somewhat smaller than Kirk Kerkorian's proposed link-up between GM, Renault and Nissan.

While other "dream" mergers probably are more exciting to FoMoCo fans (i.e. imagine Ford aligning with Honda, Navistar (International trucks) and the newly resurgent Fiat (including Ferrari, Alfa Romeo, Maserati . . . or Ford aligning with Honda, Porsche, Audi, BMW or Volkswagen)), if Renault and Nissan don't get to spend their billions to get seats at the Ren Cen, FoMoCo may court them, if only to jack up dismal share prices from the speculation . . . .

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