Renault-Nissan Shares Rise with News of No GM Alliance

Washington DC October 6, 2006; The AIADA newsletter reported that shares of Nissan and Renault rose 3.5 percent on Thursday as investors reacted positively to news that alliance talks with General Motors had been terminated.

Investors and analysts had worried that the possible alliance with GM would prove to be a burden for Nissan, given GM's struggling profits and soaring healthcare costs, reports The Associated Press. "We've somewhat expected the outcome so we just take it as is," Nissan Chief Operating Officer Toshiyuki Shiga told Japan's public broadcaster NHK. "A deal like this is difficult unless each participant is positive about an alliance as a benefit."

Nissan spokeswomen Mia Nielsen told Reuters on Thursday that the automaker remains interested in finding a North American partner. "We remain convinced that the Renault-Nissan alliance could be extended to work with additional partners. From a strategic perspective and under the right conditions a North American partner could make sense."