GM, Nissan-Renault end alliance talks
10-04-2006 | 11:59 AM
#1
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Joined: Nov 2005
Posts: 1,028
From: Chicago, IL
GM, Nissan-Renault end alliance talks
http://msnbc.msn.com/id/15129365/
GM, Nissan-Renault call off alliance talks
Report: Discussions stalled over GM demand for ‘control premium’
BREAKING NEWS
MSNBC News Services
Updated: 31 minutes ago
The chief executives of General Motors and Nissan-Renault have called off their talks about a possible global alliance according to a report in the online edition of The Wall Street Journal.
GM’s CEO Rick Wagoner and Carlos Ghosn, the chief executive of Nissan and its sister company French automaker Renault, decided that the two companies are too far apart on the value of the potential alliance and decided to terminate discussions, which have been underway for two months, the newspaper reported.
Talks stalled over GM’s demand that Nissan-Renault pay GM a “control premium” if it bought a 20 percent stake in GM as part of the alliance, the Journal said. GM’s CEO Wagoner told his board Tuesday that investment bankers had advised him to secure a 20 percent control premium because an alliance with Nissan-Renault could prevent the Detroit automaker from entering into any other joint ventures.
Observers have speculated for weeks that discussions between the auto giants would break down. Late last month at the Paris Motor Show, GM toughened its public stance on the proposed alliance, stating that it was unhappy with the plan on the table. GM saw a smaller payoff for its own shareholders than for those of Renault and Nissan, spokesman Brian Akre said, and planned to seek compensation for that imbalance as part of any deal.
Talks about a potential business alliance began this summer soon after Kirk Kerkorian, GM’s largest shareholder, first proposed that the U.S. automotive giant join in a business alliance with Nissan and Renault, pushing for GM to consider a partnership in an effort to help the world’s biggest automaker stage a turnaround and reverse its declining market share.
The Associated Press and Reuters contributed to this report.
http://msnbc.msn.com/id/15129365/
GM, Nissan-Renault call off alliance talks
Report: Discussions stalled over GM demand for ‘control premium’
BREAKING NEWS
MSNBC News Services
Updated: 31 minutes ago
The chief executives of General Motors and Nissan-Renault have called off their talks about a possible global alliance according to a report in the online edition of The Wall Street Journal.
GM’s CEO Rick Wagoner and Carlos Ghosn, the chief executive of Nissan and its sister company French automaker Renault, decided that the two companies are too far apart on the value of the potential alliance and decided to terminate discussions, which have been underway for two months, the newspaper reported.
Talks stalled over GM’s demand that Nissan-Renault pay GM a “control premium” if it bought a 20 percent stake in GM as part of the alliance, the Journal said. GM’s CEO Wagoner told his board Tuesday that investment bankers had advised him to secure a 20 percent control premium because an alliance with Nissan-Renault could prevent the Detroit automaker from entering into any other joint ventures.
Observers have speculated for weeks that discussions between the auto giants would break down. Late last month at the Paris Motor Show, GM toughened its public stance on the proposed alliance, stating that it was unhappy with the plan on the table. GM saw a smaller payoff for its own shareholders than for those of Renault and Nissan, spokesman Brian Akre said, and planned to seek compensation for that imbalance as part of any deal.
Talks about a potential business alliance began this summer soon after Kirk Kerkorian, GM’s largest shareholder, first proposed that the U.S. automotive giant join in a business alliance with Nissan and Renault, pushing for GM to consider a partnership in an effort to help the world’s biggest automaker stage a turnaround and reverse its declining market share.
The Associated Press and Reuters contributed to this report.
http://msnbc.msn.com/id/15129365/
10-04-2006 | 12:53 PM
#5
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Joined: Jun 2002
Posts: 2,979
Re: GM, Nissan-Renault end alliance talks
Originally Posted by Z28Wilson
Good. Now Wagoner and Co. can focus on the one true goal....turning the ship completely around.
The appropriate GM alliance is with HONDA, not Renault.
