GM ready for Nissan-Renault talks
GENERAL Motors' board is poised to resume discussions on a proposed threeway tie-up with Nissan and Renault, according to insiders.
Nissan and Renault have already given the go-ahead for their chief Carlos Ghosn to discuss a possible deal with GM that would recast the global car industry, creating a new $100bn(£54.3m) giant.
Renault's board, which owns 44% of Nissan, backed up earlier approval by Nissan in a faxed statement after a board meeting in Paris.
The board of Nissan said Ghosn could proceed with the talks 'if General Motors supports and endorses the proposal made by its shareholders'
Signs are that GM has come round to the idea, first put forward by investor Kirk Kerkorian. GM's board is expected to use a scheduled conference call on Friday to resume discussions on the proposed deal.
Kerkorian, who controls 9.9% of GM through his private Tracinda company, is unhappy with the pace of chief executive Rick Wagoner's plan to recover from 2005's $10.6bn losses. Under the three-way deal, Nissan and Renault may buy as much as a combined 20% stake of GM.
GM has been struggling for traction in the vital North American market, where it has been losing market share to Japanese manufacturers.
Figures for June show a 26% slump in GM sales as Toyota increased its sales by 14% from a year earlier, giving Asian brands 37.2% of the US market, up from 32.4% last year.
Despite Ghosn's track record at turning round Nissan, Renault and Michelin, Nissan shareholders have given a lukewarm greeting to the idea of a tie-up.
Analysts say there are fears that with GM's strong labour unions, Ghosn may not have the free hand he had at Nissan. Others are sceptical that a deal can be struck quickly.
'Our view, at the moment, is it would be a complicated alliance to execute successfully and would take quite a bit of time,î Robert Schulz, a credit analyst at Standard & Poor's , which cut GM's debt rating to junk a year ago, told Bloomberg.
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