General Motors, Renault And Nissan Terminate Alliance Discussions
DETROIT, BOULOGNE-BILLANCOURT, TOKYO, October 4, 2006
General Motors, Renault and Nissan said today that they had agreed to terminate discussions regarding a proposed alliance among the three companies.
The parties mutually recognized that significant aggregate synergies might result from the alliance. However the parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits.
Based on its conclusions, GM had proposed that Renault-Nissan provide compensation as part of a potential alliance and for potentially precluding GM from entering other alliance opportunities if Renault-Nissan had made a significant investment in GM.
Renault and Nissan consider that the principle of compensation is contrary to the spirit of any successful alliance.
In this press release, GM uses words like “expect,” “estimate,” “plan,” “goal,” “project,” “priorities,” “target,” “intend,” “may,” “would,” “could,” or “potential,” to identify forward-looking statements that represent GM’s current judgments about possible future events. GM believes these judgments are reasonable, but actual results may differ materially due to a variety important factors.
Among other items, such factors might include: GM’s ability, and the ability of Renault and Nissan, to realize synergies from any strategic relationship and the extent of the synergies realized by each party; the economic structure of a strategic relationship; GM’s ability to achieve reductions in costs as a result of the turnaround restructuring, health care cost reductions and an accelerated attrition program, to realize production efficiencies and to implement capital expenditures at levels and times planned by management; the pace of product introductions and market acceptance of GM’s new products; the effect of a strategic relationship on the competitive environment and the effect of competition in GM’s markets; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees; GM’s ability to complete the timely sale of a 51-percent controlling interest in GMAC; labor strikes or work stoppages at GM’s key suppliers such as Delphi Corporation or financial difficulties at those key suppliers; negotiations and bankruptcy court actions with respect to GM’s relationship with Delphi; changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which GM operates; and the ability of Renault and Nissan to achieve their current business plans.
The most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed by GM provide information about these factors, which may be revised or supplemented in future reports to the SEC on those forms or on Form 8-K. GM cautions investors not to place undue reliance on forward-looking statements, and does not undertake any obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.
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