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Official: General Motors, Renault, Nissan terminate alliance talks

by Nick Aziz

Following rumors Wednesday afternoon, General Motors, Renault and Nissan issued a joint statement saying 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," the 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."

"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," the statement said.

"Renault and Nissan consider that the principle of compensation is contrary to the spirit of any successful alliance." Transcript of a speech by GM CEO Rick Wagoner after the jump...