October 5, 2006

Nissan, GM and Renault terminate alliance discussions

Detroit, Michigan – General Motors, Renault and Nissan have issued a statement saying that they have agreed to terminate discussions regarding a proposed alliance among the three automakers.

The statement reads, “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.”

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