Carlos Goshn Speaks Out On CNBC

Carlos Goshn, CEO of Nissan and Renault, appeared yesterday in an interview on CNBC with that network's talking head, Maria Bartiromo. His visit was no doubt a coup for the network, as Goshn is now the most sought-after executive in all of the automotive sector.

Kirk Kerkorian, GM's largest, and predatory, shareholder, is desperately trying to find a way that Mr. Goshn can, effectively, run GM. To that end, Kerkorian and his associate, now GM board member, Jerry York, have proposed that GM enter an alliance with Nissan/Renault, thus hopefully securing Goshn's services on GM's behalf.

Judging from Goshn's statements in the interview, Kerkorian had better start praying that something else comes along to help GM and its stock price. Because Carlos Goshn made it crystal clear that he had no spare time for GM. However, most interesting were his remarks on what an alliance does for the parties involved.

Goshn explained that while such an alliance might help GM with shared parts, engines, perhaps platforms and designs, each alliance member is responsible for fixing their own company's problems.

Thus, Goshn ruled out being the white knight to come riding in, replace Rick Wagoner, and rescue GM. At best, he left the door open for GM to join the Nissan/Renault alliance, swap equity stakes, and help itself with access to knowledge from the other two members.

I'd say this puts another nail in GM's coffin for the long term. While Rick Wagoner may not be out of a job because of this proposed alliance, he may well be out of a job due to continued unsolved problems and lackluster performance at GM.

Goshn came off as a very resolute, no-nonsense, pragmatic and realistic executive. Pretty much the opposite of Wagoner. I can see why Goshn solved Nissan's problems. And from some of his remarks, I think, were he to actually assume the title of GM CEO, he'd "rescue" GM by carving out a much-reduced core company of decent products and cost structures, while summarily shedding much of the giant's outmoded asset and personnel bases.

It should be very interesting to watch Kerkorian's moves during the rest of the summer, as the alliance discussions and subsequent maneuvers pan out. But, suffice to say, I wouldn't go buy GM stock based upon what I heard from Goshn yesterday.