DETROIT: Auto maker General Motors may find just the break it needs if its board of directors accepts a tie-up deal with French car maker Renault and its Japanese partner Nissan.

Investor Kirk Kerkorian, who owns a 9.9 percent stake in GM through his private investment company Tracinda, recommended that the GM board consider allowing the Renault-Nissan combine to approach it for about 20 percent stake.

The deal, if accepted, would create a $100bn automobile giant besides possibly giving turnaround expert Carlos Ghosn a chance to revive the ailing auto giant. Ghosn has past experience of taking charge of struggling companies and steering them to profitability. Currently he heads both the French company and Nissan where he maneuvered a skillful turnaround and pulled the Japanese car maker out of near bankruptcy.

Ghosn confirmed that he had already spoken to Kerkorian about the proposed deal and was willing to discuss it with the GM board. It would be in line with Renault’s global plans giving it strategic alliance with a company that was once the world’s biggest auto maker. The tie-up would also open the doors to the North American market for Nissan.

In recent years, GM’s has seen its dominance over the auto industry declining and sales plummeting to new lows each quarter. The company has lost significant market share to Asian car makers whose fuel-efficient smaller cars have appealed to the American consumer. Soaring oil prices have been a key factor affecting car sales across the US market and the world. June sales figures indicate a drop of 26 percent for GM while Japanese car maker Toyota saw a 14 percent rise. Cars of Asian make now enjoy 37.2 percent (32.4 percent last year) of the US market.

While most analysts agree on the industrial logic behind the proposed three-way tie-up, skeptics, especially Nissan shareholders, are unsure Ghosn would be able to revive GM. The auto giant has strong labor unions that might make Ghosn feel unwelcome. Some analysts also believe the three companies would always be at odds over business goals.

France’s industry minister Francois Loos backed Renault’s plans for a tie-up with GM but warned that the US company had been facing problems that may not be easy to solve.

GM had reported a loss of $10.6bn for last year.