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DaimlerChrysler Skeptical of Possible GM/Renault-Nissan Alliance

Thursday July 6, 2006

In a somewhat ironic twist, DaimlerChrysler – the result of an automotive meg-merger – has expressed its skepticism towards any kind of alliance that may take shape between General Motors and the existing Renault-Nissan Alliance.

According to Dieter Zetsche, the potential cost-cutting benefits of such mergers are often exaggerated. He also argued that each company was already mass-producing its own variety models, so there would be very little economising from possible platform sharing either.

They (Renault-Nissan) have also been able to do a lot of cost-cutting by using common suppliers for up to 75% of all of their parts.

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