The automotive triad will not come to pass due to General Motors Corporation (GM), Renault SA (RNSDF.PK) and Nissan Motors (NSANF.PK) calling off discussions about forming a three-continent automotive alliance after GM sought compensation for their participation.
In corporate mumbo jumbo it went like this, “The parties mutually recognized that significant aggregate synergies might result from the alliance,” the three companies said in a joint statement. “However the parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits,” as reported in an MSNBC.com article.
Originally the talks were to have not been concluded before the Oct. 14 deadline but GM thinks that Renault stands to benefit more by the alliance and proposed that France's Renault and Japan's Nissan, which are already joined in an alliance, provide compensation as part of the triad.
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