Cooperation and sharing technologies with Daimler would in itself be no bad thing, but that should be all. In 2009, 61% of Mercedes-Benz Cars were sold in Western Europe, with roughly half of those in Germany. U.S. sales were around 20% of 2009’s roughly 1.1 million units, and China weighed in at just 6.7% at 67,500 units.
GM, by contrast, shifted about 37% of its total 2009 sales in Asia, South America and Eastern Europe, according to J.D. Power & Associates data. Throw in GM’s plans to ramp up its Indian operations and its large presence in the Brazilian market, where Renault is investing to roughly double its market share to 10%, and the Detroit giant’s allure is obvious.
Moreover, in contrast to 2006, when there was talk of Ghosn taking over the top spot at GM, this time around the Detroit company’s balance sheet is not laden with financial sink holes. Given that Washington has bailed out the ailing automaker, any investment by the French would be limited to a minority stake; however, let’s assume Renault and Nissan take an initial 10%.