Renault exec says GM must confront Toyota: reports

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Tue Sep 26, 5:58 AM ET

 

 

 

PARIS (Reuters) - A key Renault executive indicated in quotes cited by newspapers on Tuesday that U.S. carmaker General Motors (NYSE:GM - news) did not share the same sense of urgency as do Renault (RENA.PA) and Nissan (7201.T) to fight rival Toyota.

 

The Wall Street Journal's online edition quoted Patrick Pelata, head of Renault's product and strategic planning, as saying that GM needed to confront the global expansion drive of Toyota Motor Corp. (7203.T).

 

GM and Renault and Nissan have given small teams of executives until October 15 to study the possible merits of a three-way alliance, following up on a suggestion by major GM investor Kirk Kerkorian.

 

Pelata said he had warned GM Vice Chairman and Chief Financial Officer Frederick Henderson that if GM delayed solving its performance issues, "it is just going to get worse.

 

"Their competitor is Toyota," the Journal quoted Pelata as saying. Toyota has announced plans to sell 9.8 million vehicles globally by 2010, surpassing GM to be the world's top automaker in terms of vehicles sold, the Journal said.

 

A spokeswoman for Renault confirmed that Pelata had talked to a group of U.S. journalists as part of a "Renault Discovery Tour" for reporters new to covering the French car group.

 

"I cannot deny that he made these remarks," she said.

 

The Washington Post quoted Pelata as saying "What are they going to do about Toyota? ... What are we going to do, and what is GM going to do? Are we just going to say they're going to be winners?"

 

A spokesman for GM Europe said the company would not comment on the alliance talks until mid-October.

 

GM WARY

 

The New York Times said GM had raised doubts in its talks with Renault and Nissan Motor that an alliance would yield the benefits that Renault and Nissan insist would result.

 

The newspaper reported that Pelata said his side had made a strong case in favor of a deal but that he was not sure GM was convinced.

 

Pelata said members of GM's negotiating team had said they were wary of Renault's and Nissan's claims because of GM's experience in alliances with global auto companies, the newspaper said.

 

The Renault event took place in the week of the Paris Auto Show, which kicks off on Thursday, and before a Paris meeting between GM Chief Executive Rick Wagoner and Carlos Ghosn, head of both Renault and Nissan.

 

The companies are not officially commenting on the talks before that date, but Ghosn has made remarks recently that show his enthusiasm to clinch a deal with a North American partner.

 

Media reports emanating from the United States suggest the talks with GM are stalling, while Ford Motor Co (NYSE:F - news) is more willing to sit around the table with Ghosn.

 

Ghosn told Automotive News in an interview published on Monday that the teams working on the alliance study were "all doing a very good job," but the result was not yet known.

 

He declined comment on whether General Motors was ready to accept the kind of sweeping alliance he has in mind but pointed out that companies with a successful track record for alliances were more open to such deals than those with disappointments.

 

Ghosn said he realized a deal faced internal resistance from some people at GM who saw their interests at risk and that the deal had no chance unless it had support from the top of GM.

 

Renault has a 44.4 percent stake in Nissan, and the Japanese firm in turn holds 15 percent in Renault.