GM Plans Alliance Talks in Paris
General Motors
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CEO Rick Wagoner will meet with Carlos Ghosn, his counterpart at
Nissan
and
Renault
, in Paris this week to discuss the potential alliance between their companies, according to the
Associated Press
.
The meeting will coincide with the Paris Motor Show, which starts Thursday.
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Both parties acknowledged in July that discussions about a three-way alliance were under way. The companies began a 90-day review of the proposal at the time.
The automakers are expected to decide by Oct. 15 whether they will form a partnership, according to Japan's
Kyodo News
.
GM, the world's largest automaker, has been losing market share to foreign-based competition in North America, and it's under pressure to restructure its business in order to create value for shareholders.
An alliance with Nissan and Renault could help GM stave off competition from
Toyota
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, which is poised to overtake it as the market leader, but analysts question how a deal could actually improve GM's profitability.
Shares of GM recently were down 44 cents, or 1.4%, to $30.18.
