Nissan share gains on news of a possible GM deal

Nissan share gains on news of a possible GM deal

General Motors might be the world’s largest maker of automobiles but they are a struggling company finding it hard to compete against the likes of Toyota and Honda in their home market of United States.

In fact, GM’s biggest shareholder, Kirk Kerkorian is now pushing for an alliance between GM and Nissan/Renault SA to cut on cost for manufacturing cars.

Nissan and Renault SA are both headed by Carlos Ghosn and as per incoming reports; they might come up with a proposal to buy up to 20 percent of Detroit-based GM.

This news report helped Nissan shares gain in the stock markets as they rose as much as 1.4 percent after the company confirmed that they are going to discuss this possibility.

Renault is also due to hold a board meeting later today to discuss whether to expand the alliance.