While it’s clear GM’s financial situation could be improved with the help of the more financially stable Renault- Nissan alliance, it’s less obvious why CEO Carlos Ghosn is so anxious to tie the knot with the struggling American automaker. Many analysts say Renault-Nissan has little to gain from General Motors. However, Bloomberg speculates that Ghosn may wish to leverage GM’s capacity to do battle with Toyota. “ Toyota is so dominant in the global car industry and they are growing so fast and so steadily that no one can really catch up,” said analyst Atsushi Osa. “Ghosn may want to use GM’s assets and resources against Toyota.” Ghosn could use GM’s idle manufacturing capacity to increase production cheaply, the report suggests. On Friday, GM said it would proceed with exploratory discussions with Renault and Nissan.
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