"The parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits," Nissan Motor Co. said in its statement.

GM Chairman and Chief Executive Officer Richard Wagoner said at a press conference that potential benefits of the three-way alliance would have favoured Nissan-Renault.

"The value was heavily skewed toward Nissan," Wagoner said, saying he believed the talks had failed due mainly to a conflict over the distribution of benefits to be gained from the tie-up.

Wagoner agreed with Carlos Ghosn, president of both Nissan and Renault SA, during a phone conversation Wednesday morning to call off the talks, just 10 days before the Oct 15 deadline.

According to a joint press release, GM proposed the Nissan-Renault bloc compensate the carmaker if it makes a "significant investment" in GM, saying such a move would prevent GM from entering other alliances, while Nissan-Renault said compensating GM would be "contrary to the spirit of any successful alliance".

Wagoner said GM's board of directors had agreed that "the structure of the proposed alliance would not be in the best interests of GM and its shareholders".

With the prospect gone for a tie-up with GM, the Nissan-Renault bloc is likely to begin seeking an alliance with Ford Motor Co.