July 10, 2006
GM board authorizes talks with Nissan
Detroit, Michigan – General Motors’ Board of Directors has endorsed a recommendation by the company’s senior management for exploratory discussions with Nissan and Renault, regarding GM’s potential participation in a three-way alliance between the companies.
On June 30, Kirk Kerkorian, whose Tracina Corporation is GM’s largest shareholder, sent a letter to GM CEO Rick Wagoner proposing that GM’s directors form a committee to explore the partnership possibility with Nissan and Renault. Those companies stated they were receptive to the idea.
Under the recommendation, Wagoner will lead the company’s effort to conduct exploratory talks with Carlos Ghosn, who heads both Nissan and Renault. In a statement released last Friday, Nissan said that “we look forward to starting the discussion process soon.”