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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