General Motors Corp. management is marshaling potential arguments against a proposed alliance with Nissan Motor Co. and Renault SA and plans to air them at a meeting of GM's board Friday, The Wall Street Journal reported Thursday.

GM Chairman and Chief Executive Rick Wagoner won't dismiss the proposed alliance outright at the meeting and is expected to launch a due-diligence review, the report quoted people familiar with the company's plans as saying.

But he will make it clear to the directors that management has major concerns with both the substance of the proposal and the way it was broached, it added.

In essence, Mr. Wagoner and his management team intend to treat the alliance proposal, publicly disclosed last Friday by GM's largest individual shareholder, billionaire Kirk Kerkorian, as a hostile move against management, according to individuals familiar with the company's thinking.

Mr. Wagoner is scheduled to meet on July 14 with Carlos Ghosn, who is CEO of both Renault and Nissan. Mr. Ghosn, widely praised for orchestrating a turnaround at Nissan.

Nissan and Renault, in statements earlier this week, said they will pursue the alliance only if GM agrees.

The GM's board held an unscheduled session last Friday to consider the proposal. In a statement after the session, GM noted that Kerkorian's request "will be taken under advisement by the GM board of directors."

The project, if materialized, could shake up the global auto industry, in addition to helping pull GM out of a financial limbo, market analysts said.

GM, which lost 10.6 billion U.S. dollars last year, has been saddled with soaring healthcare and retirement costs. Its U.S. market has shrunk and raw materials costs rocketed. Moreover, GM has to continue paying thousands of idle workers under labor agreements.

But according to a person who has knowledge of GM's thinking, the company views Renault and Nissan as companies that couldn't really help GM.

The U.S. auto maker also feels an alliance isn't needed because GM's turnaround is starting and the company's management needs time, according to this person.

Source: Xinhua