General Motors CEO Rick Wagoner and Renault- Nissan CEO Carlos Ghosn have ended their discussions of a possible alliance between the three organizations, reports the Wall Street Journal. According to the newspaper, a major factor that led to the split was GM’s demand that Nissan-Renault pay a “control premium” if it bought 20 percent of GM’s stock as part of the alliance.
People “familiar with the situation,” said talks were terminated after a brief phone call this morning between the two cheif executives. The move comes eleven days of ahead of the planned deadline for a decision by GM and Renault- Nissan . The two sides reportedly agreed they were simply “too far apart on the value of the potential tie-up,” the newspaper said. A GM spokesperson declined to comment to the WSJ. None of the three parties has issued an official statement in response to the report.
