Financially strapped General Motors may get assistance from an unexpected source as it restructures and slashes costs in a bid to return to long term profitability.

Investor Kirk Kerkorian's company, Tracinda, which owns 9,9 per cent of GM's common stock and is the company's third largest shareholder, has suggested that the American giant joins the very successful Renault-Nissan alliance.

This would give it access to the troubleshooting and restructuring skills of Carlos Ghosn, who rescued Nissan from its financial woes in 1999 and has made both the Japanese company and Renault very profitable. Both companies are also well structured to tackle the future with confidence.

Ghosn has led Nissan shares to a 67 per cent gain in the past five year, while Renault has risen 63 per cent in the same period. In contrast GM's share value has fallen 53 per cent.

The proposal involves the Renault-Nissan alliance buying a 20 per cent share in GM - 10 per cent for each partner. (Renault currently owns a 44,4 per cent stake in Nissan, which in turn has a 15 per cent share in Renault). If the GM-Renault-Nissan alliance becomes a reality it will have an annual vehicle output of more than 15 million vehicles with a global market share of nearly 25 per cent.

Both the Renault and Nissan boards were quick to respond positively to the proposal that they start exploratory talks with the US company. However, Ghosn has said that should GM opt to not form a partnership, no "hostile action" will be undertaken.

The manufacturers have agreed to make a decision about their possible global alliance by October 15.