After talks between General Motors Corporation (NYSE: GM) and Nissan-Renault came to a unsuccessful end on Wednesday, GM's largest investor, Kirk Kerkorian, has said that he has no plans of making any further investments in the automobile giant.Kerkorian was a strong voice in trying to facilitate an alliance between GM and Nissan-Renault and is obviously upset over the failure. Kerkorian, who currently owns 9.9% of General Motors had told the SEC earlier this week that he was considering adding to his holdings to lift his stake to 12%.
Not only has Kerkorian decided not to add to his position, his adviser Jerome York , who served on GM's board, has resigned from his position. As Autoblog says, it's a lot like taking your ball and going home...
After today's announcement GM stock fell as much as 8.3% to a low of $30.38 and is currently trading down 4.0% to $31.80 down $1.33.



Reader Comments (Page 1 of 1)
10-06-2006 @ 2:48PM
John said...
screw kervork and his evil crew of corporate radiers renault runs sweat shops and child labor just like Nissian. change the currency trade rates to even the feild and forighn companys could not compete with America. America has two strikes against it the W.T.O. and the world bank. we are the Global economy the one and only consumer. take our jobs over seas and who wil they produce for? If G.M falls it is a hairbringer of nissians fall .. and toyotas fall.
10-06-2006 @ 2:50PM
Chuck Pearlman said...
I think Mr. Kerkorian might have pulled the trigger a little early in not purchasing his additional stake in GM. One of the reasons GM has made a turn around was because of Mr. Kerkorian. I don't believe Nissan-Renault was the answer. They don't have enough knowledge in dealing with American labor unions. GM just needs to continue talks with the unions plus keeping up with all the new trends in automobile styles and technology, fuel consumption and new automated technology on the assembly line. I've purchased GM products since I was 17 and will continue to purchase GM products.
10-06-2006 @ 3:14PM
mr car said...
to all those who don't get it. until the union is brought under control the car industry will continue to decline. it is the same old story the pedlum swings rt and left. first the union is to strong and now the manfacturer needs to be strong. until the union is basically a nothing, american automobiles will be behind all the foreign imports. the only foreign car that was worst was the yugo.it's gone.
10-07-2006 @ 3:59AM
Gumbo said...
I had been screaming out that Kirk actually owns a MGM Casino hotel in Detroit, yet no body is hearing me. They are scraming aorund mindlessly. Kirk came to GM to squeeze balls so that UAW can keep jobs and blow away dough at the casino nearby. Kirk is understandably concerned that GM is trying to kick UAW out. UAW cant compete with other carmakers running non union jobs. Not one iota anymore. UAW lost big but still refuse to acknowldege it. UAW gave back very little since . What GM had won since will be given back to what is left of UAW workers. UAW will get smaller and getting richer like our sun that will expand and blow up in the distant future. UAW will explode into smithereeens soon.
10-07-2006 @ 2:41AM
Gary E. Sattler said...
These are dangerous waters to tread... I know.
I'm gonna anyway (hee hee)
Since I see no actual quotes from Kerkorian in this article, it comes as pretty much conjecture to me. Tell me what the guy is saying... you'll get my attention.
Gut instinct tells me that GM is up to something.
Nissan-Renault didn't pull out of negotiations, GM sent them on their way! You don't opt out of global positioning unless you're very stupid or you know something no one else does. What do you think this is?
As for those unions... what can I say? Three decades of moving in and strangling cash cows. It's not the fault of the workers!!! That union money goes to place politicians who then back the unions and so the cycle goes. The whole time, blue collar labor floats the bill hidden under disguise of "a better deal", until another manufacturer closes shop in disgust.
Here's the only solution I can come up with at the moment and it comes with little knowledge of actual federal union laws. The corporations can have no part of instigating this, our friends in the government have made sure of that!
I AM NOT A LAWYER and THIS IS NOT LEGAL ADVICE!!!
As far as I know...
Employees within a manufacturing facility can, with assistance of legal council, organize themselves "in house", without the assistance of their union and vote to displace a labor union which is proven to be either:
1.) Ineffective in their bargaining practices.
2.) Acting to the detriment of the employee's best interests in any matter regarding their employment.
3.) Pursuing activities which are in clear violation of safe and effective business practices as defined by federal laws.
-OR-
4.)For other such cause as the court shall deem sufficient to require removal of the union from a position of representation for the affected workers.
After court ordered severance of the union from position of representation, the employees may reorganize under direction of a new union or may enter into "in house" collective bargaining position with their employer. The contract in existance at time of union severance remains in effect until such time as the contract expires or the employees and their employer reach other ratified agreement.
Contact a QUALIFIED professional attorney if this information interests you.
I AM NOT A LAWYER and THIS IS NOT LEGAL ADVICE!!!
These are just things I may have read somewhere.
10-08-2006 @ 12:14AM
Thomas Connelly said...
The real question is simply can GM make year-in/year-out profits to justify the stock price. How much can they earn per car or truck and how many can they sell. Basic fundamnetals always seem to be missing when GM is discussed. A $1,000 per unit differential for healthcare/retiree costs would otherwise come out proifts coming to shareholders if the company acheived profit levels near Toyota - can it?
10-08-2006 @ 9:39AM
Suzi said...
The major problem IS the Unions.
Why does or would anybody want to have anything to do with Unions.