WASHINGTON (AP) – A top shareholder in General Motors Corp. said Friday that automakers Renault SA and Nissan Motor Co. are interested in purchasing a significant stake in GM and including the Detroit automaker in their alliance.
Billionaire investor Kirk Kerkorian's company, Tracinda Corp., told GM chairman and chief executive Rick Wagoner in a letter, that Renault and Nissan are receptive to the idea of including General Motors in their partnership and purchasing ''a significant minority interest'' in the automaker.
Tracinda, a large minority shareholder in GM, said the existing French-Japanese partnership has created ''tremendous engineering, manufacturing and marketing synergies, resulting in substantial benefits and cost savings to both Renault and Nissan.''
Shares of GM increased $1.48, or 5.39%, to $28.92 in midday trading on the New York Stock Exchange after the news.
Tracinda urged GM's board to form a committee to ''immediately and fully explore this opportunity together with management,'' as it feels the alliance could help GM ''realize substantial synergies and cost savings and thereby greatly benefit the company and enhance shareholder value.''
GM, in a statement, said the Tracinda request ''will be taken under advisement'' by its board of directors. The automaker said it has not received any offers or proposals from Renault/Nissan about an alliance. GM said it would have no further comment.
GM has been engaged in an extensive turnaround plan in North America amid declining profits, high labor costs and growing competition from Asian automakers. The automaker announced plans last year to close 12 plants by 2008 and earlier this week announced that 35,000 hourly workers had agreed to retire early or accept a buyout offer.
Tracinda owns 9.9% of GM's common stock and is GM's third-largest shareholder. Kerkorian has pressured GM to take aggressive steps to restore profitability and his top aide, Jerome York, was elected to GM's board earlier this year.
Renault owns a 44.4% stake in Nissan, which in turn owns a 15% stake in Renault.