CSM Worldwide Analysis: General Motors, Renault-Nissan Alliance Would Create Global Powerhouse

NORTHVILLE, Mich., June 30 -- Automotive market forecaster CSM Worldwide says the alliance among General Motors, Renault and Nissan proposed today by GM investor Kirk Kerkorian would create a one-of-a-kind global enterprise that would hold dominant positions in at least three of the world's major vehicle markets. According to figures compiled by CSM Worldwide, the GM-Renault-Nissan combination would dominate vehicle sales and production in North America, Europe and China.

   Estimated 2006 combined figures for General Motors, Renault and Nissan

                               Global    N. America    Europe     China
   Sales (total and rank)      14.3 M      6.3 M *     4.6 M *   611,000
                                No. 1      No. 1       No. 1      No. 1
   Production                  14.6 M      5.7 M       4.5 M     621,000

   * Includes vehicles sold by GM/Renault/Nissan but built by other OEMs

Consolidated financial figures (estimated for 2005 fiscal year, converted to U.S. dollars)

                           Global Revenue    Net Income    Market Cap
   Combined                   $327 B          - $1.7 B        $95 B
   GM                       $192.6 B         - $10.6 B        $16 B
   Renault                   $51.5 B            $4.3 B        $31 B
   Nissan                    $83.3 B            $4.6 B        $48 B

  Factors that favor an alliance:
  *  Platform rationalization will drive higher economies of scale for each
     OEM
  *  The global footprint of the combined enterprise would be well-balanced
     among North America, Europe and Asia / rest of the world.
  *  Powertrain consolidation and part commonization opportunities could
     provide substantial cost savings over time.
  *  Risk associated with developing advanced technology could be spread
     among all three companies.

  Factors that challenge an alliance:
  *  Renault currently is undergoing a restructuring; it could be difficult
     to incorporate the GM restructuring at the same time.
  *  Disparate corporate cultures may not be easy to integrate.
  *  Opportunities for comprehensive synergies could be limited without
     strong and centralized leadership and commitment throughout the
     organizations.
  *  With the exception of E-segment and full-frame vehicles, there is a
     high degree of overlap in the OEMs' product portfolios.
  *  Further cost savings through supply chain price concessions will be
     difficult to achieve due to the fragile financial state of the supplier
     industry
  *  An alliance between the OEMs would increase risks associated with the
     2007 UAW negotiations

To contact CSM analysts for further comment on the proposed GM-Renault- Nissan alliance, please contact Mike Jackson at CSM Worldwide, (248) 380-9000 or mikejackson@csmauto.com .

CSM Worldwide (http://www.csmauto.com/ ) supports more than 500 of the world's top automakers, suppliers and financial organizations with global market intelligence and forecasting services. With corporate offices in Detroit, CSM Worldwide covers the global automotive environment from London, Frankfurt, Paris, Tokyo, Shanghai, Sao Paulo, Singapore, Bangalore and Budapest.