General Motors, Renault and Nissan (Nasdaq:NSANY) said today that
they had agreed to terminate discussions regarding a proposed alliance
among the three companies.
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.
