October 2, 2006
GM shareholder wants independent committee to study GM-Nissan-Renault deal
Detroit, Michigan – Automotive News has reported that General Motors shareholder Kirk Kerkorian will ask the company’s board of directors to hire an independent committee to study a possible alliance with Nissan and Renault. The report says that Kerkorian is frustrated with GM CEO Rick Wagoner’s lack of enthusiasm for an alliance.
GM’s board will meet Tuesday, October 3rd; at that time, Kerkorian’s representative Jerry York is expected to push for third parties not connected to GM to study the benefits of the alliance. Other board members are expected to support the request, but it is not clear how many favour an independent committee, according to a source who spoke with Automotive News.
Kerkorian, who owns a 9.9 per cent share in GM, has said that he may buy more shares. He proposed the alliance last July; GM agreed to enter into exploratory talks with Nissan-Renault for 90 days.
Wagoner has repeatedly said that GM, which lost US$10.6 billion last year, must focus on its turnaround plan as its first priority, not on an alliance.