GM's stock rose nearly 9% with the news of the proposition, but later went down to previous levels as investors seemed skeptical about the success of the alliance. Although it is expected that post alliance, the trio would have a combined market share of around 25% of the global auto market, the fact that GM is going through troubled waters cannot be ignored. Moreover, GM and Nissan are strikingly opposite. Agrees Thilipte Houchois, an auto analyst with JP Morgan, “Nissan was different from GM because it was only hit by management paralysis and lack of style products. But GM is bogged down by under investments in brands and huge legacy and pension liabilities”. At present, GM spends around $2,000 per car on these liabilities. And this trans-atlantic alliance will allow Renault & Nissan to share the liability only to the extent of their equity holdings. Although, Ghosn would get an access to some of the finest automotive research, his skills would be put to real test now – for GM is a much bigger player in terms of scale, as compared to Nissan & Renault. Not to forget, GM has been continuously losing its market share. Further, Renault & GM compete head-on in their major markets, be it Europe or North America. Quite clearly, entering into an alliance would just mean the beginning of a painful phase for the three auto majors. So, whether the alliance happens or not, Mr. Kerkorian, you will have to ultimately look out for some other way to see GM churning profits.