Renault, Nissan and GM alliance off
Talks between Renault-Nissan and GM have ceasedA three-paragraph statement issued just hours ago has brought to an end discussions between Renault-Nissan and General Motors. The talks were terminated after the world's largest car company proposed the French-Japanese giant pay it "compensation" as part of any alliance agreement.
The statement said though the parties recognised "significant aggregate synergies might result from the alliance", that they did not agree on the "total amount of aggregate synergies or the distribution of those benefits." Thus GM proposed Renault-Nissan provide compensation as part of any potential alliance and "for precluding GM from entering other alliance opportunities."
Renault and Nissan CEO Carlos Ghosn (pictured at the Paris Motor Show last week) made it clear from day one that any alliance would be on similiar and so-called "win win" terms to the current Renault-Nissan arrangement. The idea of 'compensation' was said to be a deal breaker from day one.
Talks officially commenced last week on the eve of the Paris Motor Show. The joint Renault-Nissan/General Motors working party was originally scheduled to report back to the company's executives in mid-October.
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