Nissan Motor Co., Japan’s second-biggest automaker, said Monday its board of directors gave approval to chief executive Carlos Ghosn to begin “exploratory” talks with General Motors Corp. on a possible alliance.
The board at a meeting Monday delegated “all the necessary powers” to Ghosn to negotiate with GM, Tokyo-based Nissan said in an e-mailed statement. Billionaire investor Kirk Kerkorian, GM’s fourth-largest investor, on Friday called for GM, Nissan and Renault SA to explore a three-way alliance.
Nissan and Renault, both headed by Ghosn, may buy as much as 20 percent of Detroit-based GM, the world’s biggest carmaker, according to people familiar with the matter.
Kerkorian, who controls 9.9 percent of GM through Tracinda Corp., is unhappy with the pace of GM chief executive Rick Wagoner’s plan to recover from $10.6 billion in 2005 losses, according to a person familiar with Tracinda’s strategy.
“Everyone is paying attention to Ghosn, who managed to revitalize Nissan,” said Makoto Haga, who helps manage $349 million at STB Asset Management Co. in Tokyo. “Whether Ghosn can persuade GM’s employees that a new revitalization program will help them and will be in their interest will be a challenge and the key to the success of an alliance.”
Kerkorian, 89, is frustrated with the slow pace of change so far at GM, said the person familiar with Tracinda’s strategy.
Wagoner has said he will eliminate 30,000 jobs and close 12 North American locations by 2008 as part of a plan that will cut GM’s operating costs by $8 billion by the end of this year.
Last week, 35,000 union workers agreed to retirements or buyouts, meaning GM can cut the workers two years earlier than planned and get $1 billion more than expected in 2006 cost cuts.
“We’re coming very rapidly on the road back,” Wagoner said June 26 at a news conference in Detroit.
The Nissan board approved Ghosn’s proceeding with the talks “if General Motors supports and endorses the proposal made by its shareholders,” the Japanese automaker said.
GM said last week it would consider the proposal, and the board met Friday to discuss the developments, according to people familiar with that meeting.
Directors at Renault, which owns 44 percent of Nissan, on Monday approved opening talks with GM over the possible alliance if GM wants the discussions, Renault said.
The Associated Press contributed to this report.
