Renault/Nissan auto tie-up accelerates

French carmaker Renault confirmed yesterday it was hiring two advisory banks for a possible alliance with General Motors and its existing ally, Nissan.

Speaking at the launch of the Nissan Qashqai model in Paris, chief executive Carlos Ghosn said the alliance between the French and Japanese groups was unique and built on mutual trust.

"Under the right conditions, the benefits of alliance can be extended and significant value can be created for all partners," he said.

GM and Renault have launched a 90-day study into the possibilities of a three-way alliance with GM and small teams of executives will report back to the chief executives by October 15.

Nissan is owned 44 per cent by Renault. The two automakers, which both are headed by Ghosn, have been talking to GM about a possible three-way alliance, discussing topics such as pooling purchasing of parts and sharing vehicle platforms.

Ghosn has said in the past that Nissan-Renault would take a substantial stake in General Motors as part of any expanded alliance.

Last week, he said discussions between Renault and GM were progressing well and he reiterated that the company expected to reach a conclusion by mid-October.

- REUTERS