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Short term outlook results in GM and Nissan-Renault end of talks but long term the alliance is ost likely
Sheela Parker
Oct. 4, 2006

Karkorian did not get what he wanted because in the short term the car manufacturers are arrogant and the alliance does not have much to offer.
But long term the alliance is a done deal because of cost saving from integrated manufacturing in Asia and lower procuremnt price from bigger size.
The problem is that like AT&T in 1990s GM still belives that it will run the show status quo even though they are making only shortterm progress and long term legacy costs haunt them.
The only way out for GM is to make cars abroad and bring them in final assembly in US. That will reduce the legacy costs.
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