July 6, 2006

Three-way alliance could be dud, observers warn

In this article about the potential failure of a three-way alliance between GM, Renault and Nissan, professor Peter Henning of the Law School, offers an expert viewpoint. "This could be a little bit like a second marriage where you really want it to work," he said. "That doesn't make it work. It's the triumph of hope over rationality." Henning also said any significant alliance or equity link would be overly complicated and could fail. GM is dragged down by massive legacy costs including health care and pensions, while Nissan and Renault do not have the scale from which GM could benefit, he said.

Subscribe to Today@Wayne

Direct to your inbox each week

Related articles