Latest Automotive News

Subscribe in a reader

Renault board approves talks with GM on alliance

Email   small font medium font large font


PARIS (AP) _ The board of Renault SA on Monday approved opening talks with General Motors Corp. over a possible new alliance with the French automaker and Nissan Motor Co. if the U.S. company wants the discussions, Renault said.

``The Board of Directors approved the position proposed by Carlos Ghosn: Exploratory discussions with General Motors concerning a potential alliance could start if General Motors Corp. makes the proposal,'' the brief Renault statement said. Ghosn is the CEO of both Renault and Nissan.

The Renault board met to discuss a proposal put forward by billionaire investor Kirk Kerkorian's Tracinda Corp. urging the U.S. automaker to join the alliance formed by Renault and its Japanese partner. Kerkorian holds 9.9 percent interest in General Motors.

The board of Nissan also met Monday and endorsed the idea of starting talks with General Motors. Like Renault, it set a condition _ that GM endorse the proposal.

Media reports in Japan have said that Renault and Nissan could buy up to 20 percent of outstanding shares in GM. Details of the possible investment plan surfaced after Kerkorian proposed Friday that the American carmaker join the Nissan-Renault alliance.

French Finance Minister Thierry Breton said on Europe-1 radio Monday that he met several times over the weekend with Ghosn to discuss the possible deal.

The French government, which holds 15 per cent of Renault, wants to ensure ``that transparency is perfectly respected'' in any deal, Breton said.

It remains unclear how much the investment would cost.

Should it materialize, the deal would create a huge auto alliance with annual output exceeding 15 million vehicles and commanding nearly one-quarter of global market share, Japan's Kyodo News Agency reported.

GM has been engaged in an extensive turnaround plan in North America amid declining profits, high labor costs and growing competition from Asian automakers. The automaker announced plans last year to close 12 plants by 2008 and earlier this week said 35,000 hourly workers had agreed to retire early or accept a buyout offer.

Renault owns a 44.4 per cent stake in Nissan, which in turn owns a 15 per cent stake in Renault.

Receive the latest automotive news by email!

Enter your email address:

Related news
The board of the Japanese automaker Nissan agreed today to open talks with General Motors on a possible alliance. Major G-M shareholder Kirk Kerkorian proposed last week that the troubled American carmaker join ...
Renault SA and Nissan Motor Corp. are appointing advisers for their talks about expanding their alliance to include U.S. carmaker General Motors Corp. (NYSE:GM), the chief executive of both Renault ...
Discussions about a possible alliance of General Motors, Renault SA and Nissan Motor Co. have found a number of areas in which the automakers could usefully collaborate, a Renault executive ...
General Motors toughened its public stance on proposals that the U.S. carmaker join an alliance with Renault and its sister company, Nissan, adding to uncertainties weighing on the industry as ...
Nissan and Chrysler have reached a deal to have Nissan supply cars to Chrysler for sale in South America starting next year, the automakers said Friday. The model, based on the Nissan Versa ...
FRANKFURT, Germany (AP) _ United Auto Workers president Ron Gettelfinger has stepped down from the supervisory board of DaimlerChrysler AG, a move that was expected after the sale of the majority of Chrysler ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Renault board approves talks with GM on alliance
> © 2006-2017 except where otherwise noted