TOKYO, July 1: French automaker Renault and its Japanese partner are considering a capital investment of up to 20 per cent of the outstanding shares in General Motors Corp., a press report said Saturday.

The possible investment plan was reported by the Kyodo news agency, quoting informed sources, the day after billionaire investor Kirk Kerkorian proposed that GM join the Nissan-Renault alliance.

Nissan and Renault are thinking of placing the necessary funds equally, the sources said.

The sources added that if realized, the three-way partnership would create a mammoth automotive group with an annual vehicle output of more than 15 million units, according to Kyodo.

In Detroit, Michigan, top GM executives held emergency consultations Friday to discuss the surprise proposal.

Kerkorian, a major GM stakeholder, made the proposal when he held discussions with Renault/Nissan chief Carlos Ghosn.

Renault/Nissan issued a statement Friday saying: Under the right circumstances and with the appropriate partners, the alliance could be expanded further.At this point, it is necessary that GM board and top management fully support this project in order to start the study of this opportunity after agreement of Renault and Nissan boards,” the statement continued.—AFP