Ghosn, Wagoner Vow Three Month Assessment of Alliance

Washington DC July 17, 2006; The AIADA newsletter reported that after meeting on Friday, Renault-Nissan CEO Carlos Ghosn and General Motors CEO Richard Wagoner said they will take the next three months to assess the potential benefits of a three-way alliance and then decide whether to pursue a deal, reports The Detroit News.

The two CEOs said they hoped an "expeditious, confidential" 90-day review could be conducted away from the public spotlight that has surrounded the companies' deliberations ever since GM investor Kirk Kerkorian disclosed on June 30 that he was urging GM to consider a three-way deal.

In an interview last week with CNBC, Ghosn said that one of the largest benefits of a potential alliance would be that Nissan would gain more production capacity in North America. "Obviously, it would be a benefit for the two parties," he told CNBC. "One party does not have to make such a huge investment to build a new plant. And the other party does not have to spend so much money to close a plant and reduce the work force."

Meanwhile, rumors that Toyota would make a pre-emptive bid for GM were dismissed yesterday by officials at the automaker.