Thumbs Down! GM Board Unanimously Rejected Renault Nissan Alliance

Detroit Oct 4, 2006; Reuters reported that General Motors Corp. Chief Executive Officer Rick Wagoner said on Wednesday that the automaker's board unanimously opposed the structure of an alliance with Renault SA and Nissan Motor Co.

"In the end, following a comprehensive review and discussion, the GM board determined that the alliance structure proposed by Renault-Nissan was not in the best interest of GM shareholders," Wagoner said.

The vote was unanimous with no abstentions and followed a process that included advice from outside financial advisers, Wagoner said.

"It would have potentially been a distraction to our current turnaround efforts," Wagoner said. "It unfortunately doesn't help in key areas like our huge U.S. legacy cost competitive disadvantage and could impede our fast-moving efforts to evolve to a global management system."