After leaving the automotive media dangling from a string, talks about an alliance between GM and Nissan-Renault have been brought to a close.
On Wednesday, the automakers announced that they had agreed to terminate discussions regarding the proposed alliance between them. Although the potential for synergies and benefits existed, the amount and distribution of the benefits was the ultimate cause for the decision to throw in the towel, sources say. The final decision was made by GM's board of directors.
GM had wished for Nissan-Renault to provide compensation to the American company because the alliance would prevent them from pursuing other alliance opportunities in the future. Compensation would have been above and beyond an already significant investment in GM. In what may be a result of skewed cultural beliefs, Nissan and Renault consider this method of compensation to work against to the success of such an alliance.
In an announcement, Rick Wagoner, GM CEO thanked the team in charge of heading up the talks and credited them for many hours of hard work. He indicated that a spirit of cooperation and positive attitudes was present across both sides of the table.
Both parties agreed to a method for measuring and evaluating the possible synergies of the alliance, but as Wagoner puts it, "as it turned out, we all agreed that the synergy levels were significantly in favor of Renault and Nissan."
It was made clear that GM would not be compensated for the resulting imbalances had the companies joined.
Wagoner concluded "We did advise Renault-Nissan that we were very open to the idea of further exploring, and eventually implementing, individual synergy projects that are mutually beneficial. At this point, our understanding is that we will not be proceeding on this basis."
On Wednesday, the automakers announced that they had agreed to terminate discussions regarding the proposed alliance between them. Although the potential for synergies and benefits existed, the amount and distribution of the benefits was the ultimate cause for the decision to throw in the towel, sources say. The final decision was made by GM's board of directors.
GM had wished for Nissan-Renault to provide compensation to the American company because the alliance would prevent them from pursuing other alliance opportunities in the future. Compensation would have been above and beyond an already significant investment in GM. In what may be a result of skewed cultural beliefs, Nissan and Renault consider this method of compensation to work against to the success of such an alliance.
In an announcement, Rick Wagoner, GM CEO thanked the team in charge of heading up the talks and credited them for many hours of hard work. He indicated that a spirit of cooperation and positive attitudes was present across both sides of the table.
Both parties agreed to a method for measuring and evaluating the possible synergies of the alliance, but as Wagoner puts it, "as it turned out, we all agreed that the synergy levels were significantly in favor of Renault and Nissan."
It was made clear that GM would not be compensated for the resulting imbalances had the companies joined.
Wagoner concluded "We did advise Renault-Nissan that we were very open to the idea of further exploring, and eventually implementing, individual synergy projects that are mutually beneficial. At this point, our understanding is that we will not be proceeding on this basis."