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Does Global Motors make sense?

by Nick Aziz

Forbes columnist Jerry Flint has published his thoughts on the possible Renault- Nissan-GM tie-up. Borrowing a term coined years ago by Lee Iacocca, Flint asks . "So whose plants get closed? Shut German GM plants and supply that market with French-made Opels? Close Michigan plants and supply dealers with Nissans made in Tennessee but badged as Chevys? Lay off the engineering staffs where? France? The U.S., Japan? Which dealerships get combined or closed? [...] Sometimes these conglomerations work--and sometimes they don't." He also wonders if GM would really be ready for the massive shakeup it would receive. "If Carlos Ghosn becomes part of GM, don't expect him to play as a bit actor--for long. He doesn't think much of GM's American management. [...] So Ghosn would demand massive changes and fast, and the world would expect him to be calling the shots, not the Detroit managers."