GM, Renault-Nissan talks to continue to mid-Oct

By Staff
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Google Oneindia News

DETROIT, Sep 27 (Reuters) General Motors Corp. will continue talks until mid-October with Renault-Nissan aimed at creating a global alliance, both sides said in a joint statement issued on Wednesday after their chief executives met in Paris.

GM CEO Rick Wagoner met at the Paris auto show with Carlos Ghosn, who heads both Renault SA and Japan's Nissan Motor Co., both sides confirmed.

It was the first meeting between the two executives since they huddled in mid-July and agreed to a 90-day study of a potential alliance.

Analysts have become increasingly skeptical that GM will agree to the kind of sweeping global deal that Ghosn has outlined because of progress that the U.S. automaker has made in recent months in cutting costs.

In a joint statement, GM and Renault-Nissan said executive teams at all three companies were still working on a study of ''how an alliance could generate significant shareholder value for each company.'' ''Following today's meeting it has been confirmed that the teams will continue (their) studies to the planned mid-October completion date,'' the statement said.

The alliance talks were first urged by Kirk Kerkorian, the billionaire investor with a 9.9 percent stake in GM, who met with Ghosn this summer.

Kerkorian's investment company, Tracinda Corp., had no comment on the developing talks, a spokeswoman told Reuters on Wednesday.

REUTERS DKS PM1937

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