Renault and partner Nissan said last night they were prepared to start talks with General Motors (GM) about forming an alliance that would create the world's largest auto group.
French carmaker Renault's board met to discuss a proposal made by billionaire investor Kirk Kerkorian intended to push GM into consideration of an expanded alliance with Renault and Japanese partner Nissan.
"Exploratory discussions with General Motors, concerning an alliance, could start if General Motors Corporation makes the proposal," Renault said in a statement.
GM's board met on Friday to consider the Kerkorian proposal, saying it would take the matter "under advisement".
Carlos Ghosn, chief executive at both Renault and Nissan, was authorised by Nissan's board to pursue discussions about an alliance.
Renault has a controlling 44-per cent stake in Nissan. The French state has a 15.33 per cent stake in Renault.
Mr Kerkorian owns 10 per cent of GM, and analysts have said his attempt to broker a deal between the three parties increased the pressure on GM chief executive Rick Wagoner and opened the door to a greater role for Mr Ghosn, who is credited with driving Nissan's revival from 1999.
The latest moves came as GM posted a 26 per cent decline in June auto sales from a year earlier in the US market, where the automaker has been struggling to shore up its market share as it cuts 30,000 jobs and shutters a dozen factories.
A tie-up with GM, the world's largest carmaker by volume, could put Mr Ghosn at the helm of a group that would be breathing down the neck of Toyota, which has a market value of some $190 billion.