It's Discount Week! 🎁 Pick up new Marketplace gear at a discount when you donate today! Get My Gear!

GM board at crossroads

Sam Eaton Oct 3, 2006
HTML EMBED:
COPY

GM board at crossroads

Sam Eaton Oct 3, 2006
HTML EMBED:
COPY

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.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.