Re: [AMC-List] The Kiss of Death

[Frank Swygert <farna@xxxxxxx>]

I guess you're alluding to Renault killing off AMC? That's what people
like to think happened, but is far from the truth. Renault pumped
millions into AMC to keep it afloat after 1980. If not for that, it
would have died then, as the market for 4x4 utility vehicles suddenly
fell out and left AMC hanging. That's why Renault went from a 5% or so
stake in AMC to a 47% majority share in one year. That wasn't supposed
to happen, but if it hadn't AMC would have died. 

Renault just wasn't willing to listen to AMC people on American tastes
and requirements. They learned, but learned late. Renault had pumped so 
much into AMC that they lost money when selling out in 1987, but the
political climate in France caused that. They had learned lessons the
hard way, and were in a position to make a nice come-back when the
sell-out occurred. That's what happens when the government owns a stake 
in the company -- politics are entangled with it. 

Apparently Renault learned a LOT from it's foray into AMC. The
Nissan-Renault merger turned Nissan around rather quickly. If they play 
the same game with GM, it could be the dawn of a new era, not the kiss
of death.


On June 30, 2006 JOE B FULTON wrote:

> Deja Vu?
> 
> 
> I found this on the web today:
> 
> NEW YORK - Automakers Renault SA and Nissan Motor Co.
> are interested in purchasing a significant stake in
> General Motors Corp. and including the struggling
> Detroit company in their alliance, according to a
> letter sent Friday to GM from billionaire investor
> Kirk Kerkorian's investment company.
> 
> Joe Fulton
> Salinas, CA


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