Purchasing Disputes Could Unravel Alliance Talks; No Plant Sharing in Cards

How much Nissan Motor Co. Ltd. and Renault SA are willing to pay – if at all – for access to General Motors Corp.’s global materials and parts purchasing machine remains the biggest stumbling block to any 3-way alliance between the auto makers, insiders say.

But the issue of sharing vehicle assembly plants in North America, which Renault and Nissan CEO Carlos Ghosn first suggested as an upside to an alliance, has never even entered into the negotiations and is unlikely to be a part of any potential tie-up, sources close to the discussions tell Ward’s.

Details about the tie-up talks began leaking out this week prior to a much-ballyhooed 3-hour meeting in Paris between GM CEO Rick Wagoner and Ghosn. Both emerged from those discussions saying study teams will continue meeting until mid-October as planned.

But on the sidelines of the Paris show, executives and other insiders portray a dim picture of the alliance’s chances, including GM Vice Chairman-Global Product Development Bob Lutz, who says GM may have more to gain through internal synergies worldwide than by way of a partnership with Nissan and Renault.
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OBSERVER1984 - 9/29/2006 5:17:04 PM

+1 Boost

They are getting banal. GM, who actually need help, jeer already at Renault-Nissan "We want this, we want that, we want money and so on"

I can't understand why RN want so much this alliance!?!

And if RN need an alliance than make one with Ford for example and beat together GM!!!