GM Board To Meet Today On Alliance

Washington DC October 3, 2006; The AIADA newsletter reported that the board of General Motors will meet today to evaluate the varying analyses of a blockbuster alliance with Renault-Nissan, with the possibility of making a decision on whether to approve a third party study of the possible link up.

GM declined to comment Monday on the agenda for today's meeting, but sources close to the company said Chairman Rick Wagoner will likely report on last week's summit meeting in Paris with Renault-Nissan Chief Carlos Ghosn and may present GM's recommendation against the deal, reports The Detroit News.

Ghosn has told GM that he believes the automaker could save up to $10 billion annually on parts purchasing, vehicle development costs and other areas if it were to join the alliance.

However, GM's study team sees the benefits as significantly less at around $3 billion a year.

Wagoner and Ghosn agreed last week to continue the talks until the previously set Oct. 15 deadline, but Ghosn has said that he would push back the deadline if GM needed more time to complete an independent study.