Overseas money seen wary as Detroit sinks

By Gilles Castonguay

MILAN (Reuters) - The mounting trouble for U.S. automakers has cost them any chance of winning more than partial help from a foreign investor or overseas rival.

Bankers and analysts say Detroit-based automakers could still find partners for limited tie-ups but caution it could prove impossible to find a deep pocket overseas for the cash the U.S. industry could need to ride out the current downturn.

European and Asian automakers are investing in more promising markets and face their own challenges from the rise in prices for fuel and raw materials like steel, analysts say.

While the market value of both General Motors Corp(GM.N: Quote, Profile, Research, Stock Buzz) and Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) was marked down sharply this week, uncertainty over their near prospects could keep bidders away.

"There are a lot of legacy costs that are difficult to estimate," said Klaus Pflum, an investment banker for Nomura in London.

Shares in GM ended the week down just over 17 percent, the worst weekly performance for the stock since September 2001.

With a market capitalization of $6.5 billion, GM is now worth less than a third of Renault SA (RENA.PA: Quote, Profile, Research, Stock Buzz) ($23.7 billion), the French automaker that was spurned when it sought an alliance with GM in 2006.

The leading U.S. automaker is worth just one-fifteenth of Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) ($99 billion), which overtook GM this year as the global sales leader by volume.