GM rejects Alliance

DETROIT -- General Motors and Renault-Nissan have ended discussions about a proposed alliance one day after GM directors voted unanimously against the plan. The tally included Jerry York, who represents billionaire GM shareholder Kirk Kerkorian on the GM board. Kerkorian had pressured GM to enter the Renault-Nissan alliance.GM CEO Rick Wagoner said today at a press conference that the parties generally agreed on the benefits of a tie-up and acknowledged that most of those benefits would go to Renault and Nissan. Wagoner added that the parties could not agree on paying GM money to compensate for the imbalance in benefits.“The alliance structure that was proposed was not in the best interest of GM shareholders,” Wagoner said.He added: “We concluded that not using GM funding to invest in Nissan-Renault is a good move at this time.”

This is definitely good news, this alliance would have benefited Nissan and Kirkorian and very little for General Motors, A Ford- GM alliance makes much more sense and would be more balanced. With this behind them,GM can now continue to focus on it's rebuilding.

J