Nissan, Renault Ready to Talk With GM About an Alliance
|Topics: General Motors, Renault, Nissan
July 3, 2006
Japan's Nissan Motor Company and France's Renault say they are willing to begin talks with General Motors on a possible alliance with the American company.
The boards of directors of Nissan and Renault approved the talks on Monday.
Last week, GM's most high-profile investor, billionaire Kirk Kerkorian, urged the company to consider joining forces with Nissan and Renault.
News reports say Nissan and Renault may each acquire 10 percent of GM's stock.
General Motors is the world's largest automobile manufacturer, but it is plagued with declining sales, high manufacturing costs, and steep losses.
GM is shedding factories and workers in an effort to restore profitability.
Nissan overcame serious problems and became profitable again under the leadership of Carlos Ghosn. Some analysts say he could speed GM toward efficiency and profit.
Some information for this report was provided by AFP, AP, Bloomberg and Reuters.
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