Renault works council open to tie-up with GM

19th July 2006, Comments 0 comments

FRANKFURT, July 19, 2006 (AFP) - The works council of French car maker Renault is favourable to the idea of exploring a tie-up between Renault-Nissan and US auto giant General Motors, the head of the council, Patrick Biau, said in a German newspaper interview published on Wednesday.

FRANKFURT, July 19, 2006 (AFP) - The works council of French car maker Renault is favourable to the idea of exploring a tie-up between Renault-Nissan and US auto giant General Motors, the head of the council, Patrick Biau, said in a German newspaper interview published on Wednesday.

"Fundamentally, I'd be open to such an alliance," Biau told the regional daily Berliner Zeitung.

"If there is a well-thought industrial strategy behind the tie-up, then you should look at it closely," Biau said.

"But if it's only about Renault and Nissan participating financially in GM, then it could be a risky undertaking," he added.

Biau, who heads Renault's general works council, which represents 127,000 employees worldwide, said a tie-up would give the French car maker better access to the US market and enable it to cut costs.

"You shouldn't only see the risks," he said. "When Renault and Nissan tied the knot seven years ago, there were major reservations. But the partnership has become a success for both companies."

Copyright AFP

Subject: French News

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