Official: GM, Nissan and Renault end alliance discussions
October 4, 2006 11:02AM by Michael Savio
Following earlier reports from The Wall Street Journal, which cited an unnamed person familiar with the discussions, General Motors, Renault and Nissan have released the following joint press release about the status of the talks. The outcome is that the automakers have agreed to terminate discussions regarding a proposed alliance between the three companies.
General Motors, Renault And Nissan Terminate Alliance Discussions
DETROIT, BOULOGNE-BILLANCOURT, TOKYO, October 4, 2006 - General Motors, Renault and Nissan said today that they had agreed to terminate discussions regarding a proposed alliance among the three companies.
The parties mutually recognized that significant aggregate synergies might result from the alliance. However the parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits.
Based on its conclusions, GM had proposed that Renault-Nissan provide compensation as part of a potential alliance and for potentially precluding GM from entering other alliance opportunities if Renault-Nissan had made a significant investment in GM.
Renault and Nissan consider that the principle of compensation is contrary to the spirit of any successful alliance.
## Source: General Motors ##
Posted in: Nissan, GM, Business, News, Industry, Renault
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October 5th, 2006 at 10:09AM
[…] Following the decision to terminate discussions with Nissan and Renault on forming a three-way alliance, General Motors’ CEO, Rick Wagoner, provided some remarks about how the decision came about. This followed the unanimous decision by GM’s Board of Directors that the structure of the proposed alliance would not be in the best interests of GM and its stockholders. […]