Nissan and Renault Plan Integration with GM

TOKYO, July 5, 2006; Reuters reported tyhat Nissan Motor Co. and Renault SA are looking at three main areas of potential cooperation with General Motors Corp. -- parts procurement, environmental and safety technology, the Nihon Keizai business daily reported on Wednesday.

The Nihon Keizai said Nissan and Renault would form a team to discuss specific tie-up plans if the U.S. automaker's board gave the green light for partnership talks to proceed.

A Nissan spokeswoman said the Japanese auto maker had not made any announcement since Monday and the report was speculation.

Nissan and Renault have said they are prepared to start talks with the world's largest automaker about forming an alliance that could create the world's largest auto group.

GM's highest profile shareholder, billionaire Kirk Kerkorian, has proposed that GM management immediately begin exploring a potential alliance.

The Nihon Keizai said Nissan and Renault are looking at the possibility of GM joining a parts purchasing venture they have called Renault Nissan Purchasing Organisation.

Cooperation in environmental and safety technologies would also help the three auto makers cut huge research and development costs, it said.