GM to Proceed With Partnership Talks

General Motors (GM Quote) said Friday that its board endorsed a plan to explore a partnership with two foreign-based competitors, opening the door for a landmark deal with Japanese automaker Nissan and its European partner, Renault.

The board made the decision in response to a public request from Kirk Kerkorian's Tracinda Corp., one of GM's larger shareholders that gained representation on the board this year after criticizing the automaker's approach to rejuvenating its business. The boards of Renault and Nissan voted earlier this week to explore a partnership.

Such a deal could mark a dramatic shift in the competitive landscape of the global auto industry. Besides potentially helping an ailing GM, it could challenge the increasing dominance of Toyota(TM Quote), which is poised to surpass GM as the world's largest automaker in the years ahead. ...