Billionaire investor Kirk Kerkorian today urged General Motors to consider a three-way partnership with Nissan and Renault, sending shares of GM higher on prospects for a speedier turnaround.
Through his investment arm, Tracinda Corporation, Kerkorian pushed GM to form a committee to 'immediately and fully explore' a partnership under which Nissan and Renault would buy a 'significant minority interest' in the carmaker. Renault, based in France, has a controlling 44% stake in Nissan of Japan.
Tracinda's suggestions came in a letter to GM Chief Executive Rick Wagoner. Renault and Nissan declined to comment. GM said it had received no offer from the other two carmakers but that its board would consider Tracinda's request.
The proposal shocked analysts and investors and opened up the prospect of a cash infusion for GM, which has been facing heavy labour costs and declining market share in the US as it undertakes a massive restructuring.
The world's largest carmaker lost $10.6 billion in 2005. Such a partnership also promises future cost savings on product development and a closer association with Carlos Ghosn, who is credited with driving Nissan's turnaround and now heads Nissan and Renault.
