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Discussions between Renault-Nissan and General Motors on expanding the double alliance to include the troubled North American group have fallen apart, with Renault blaming GM.

Earlier reports from the Paris Motor Show had indicated that the talks would be concluded in mid-October, but a terse statement from Renault this evening says the discussions have been terminated.

The statement reads:

"General Motors, Renault and Nissan said today that they had agreed to terminate discussions regarding a proposed alliance among the three companies.

"The parties mutually recognized that significant aggregate synergies might result from the alliance. However the parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits.

" Based on its conclusions, GM had proposed that Renault-Nissan provide compensation as part of a potential alliance and for potentially precluding GM from entering other alliance opportunities if Renault-Nissan had made a significant investment in GM.

"Renault and Nissan consider that the principle of compensation is contrary to the spirit of any successful alliance."

Earlier reports had General Motors chief Rick Wagoner quoted as having said that GM would expect to receive a "dowry" to join the alliance that French-owned Renault has had with the Japanese vehicle maker Nissan for half a dozen years.

But Renault-Nissan chief Carlos Ghosn was said to be resistant to paying any money to GM, which he regards as needing the triple alliance more than his group did.

Ghosn and Wagoner met in Paris before the launch of the Mondial de l'Automobile in the French capital.

Renault-Nissan could now find itself courted by Ford, which is also looking for an alliance to counter its problems in North America. Alternatively, a Grand US Alliance between Ford and GM might be possible, though Ford is likely to be as resistant as Renault was to any demands from GM for fees to be involved.