General Motors Corp., Renault SA and Nissan Motor Co. said Wednesday that they have cut off discussions about forming a global automaking alliance.
The companies said in a joint statement that they could not agree on what the benefits of the alliance would be or how those benefits would be distributed.
GM had proposed that Renault-Nissan, which are already joined in an alliance, provide compensation as part of a potential link-up, the companies said. But Renault and Nissan believe compensation would be "contrary to the spirit of any successful alliance," according to the statement.
GM shares fell 57 cents, or 1.7 percent, to $32.84 in afternoon trading on the New York Stock Exchange.
The companies had been working toward a self-imposed Oct. 15 deadline for evaluating the alliance proposal and a week after GM Chairman and Chief Executive Rick Wagoner and Renault-Nissan CEO Carlos Ghosn met face to face in Paris.
Afterward, GM officials voiced skepticism about the proposed linkup, saying Renault-Nissan stands to benefit more than GM.
The idea to join the alliance has been promoted by billionaire investor Kirk Kerkorian, who owns a 9.9 percent stake in GM. After Wagoner's meeting with Ghosn, Kerkorian turned up the heat by announcing he might increase his stake in the company. He also called for an evaluation of the alliance proposals by independent advisers.