GM board at crossroads
TEXT OF STORY
SCOTT JAGOW: GM’s board of directors meets today. The pressure’s on for the company to decide whether it should join forces with a couple of overseas competitors. More now from Sam Eaton.
SAM EATON: Oh to be a fly on the wall at today’s GM board meeting.
With a deadline looming and an industry in turmoil, board members will be taking a close look at a potential merger with its foreign rivals Renault and Nissan.
Analyst David Cole with the Center for Automotive Research says the burning question is whether such a deal would distract GM from the task at hand — righting a sinking ship.
DAVID COLE: GM really quite visibly has turned the corner here and will consequently be a little more reluctant to do something that could hamper the speed of the turnaround.
For that reason company execs are expected to give a downbeat assessment of the possible alliance with its French and Japanese rivals.
In the other corner is GM’s biggest individual shareholder, Kirk Kerkorian, who says the deal could save the company billions of dollars.
GM has agreed to continue talks with Renault Nissan through October 15.
In Los Angeles, I’m Sam Eaton for Marketplace.
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