ˆ Nissan makes offer for 20% of Chrysler

tags : breaking , ghosn chrysler , ghosnchrysler , nissan buy chrysler , nissan chrysler , nissan chrysler renault , nissanbuychrysler , nissanchrysler , nissanchryslerrenault

The fate of Chrysler LLC continues to grow more complicated as reports today indicate that Nissan/Renault CEO Carlos Ghosn has made an offer to buy 20% of the privately owned automaker from Cerberus Capital Management, which is also currently in talks to make a deal with General Motors. Unlike a potential deal with GM that could see Chrysler's brands dismantled, a deal with Nissan, which already has an alliance with Renault, would likely keep the American automaker intact and moving forward. Chrysler would become, in effect, the American arm of a triumvirate of brands that includes Nissan from Japan and Renault from Europe. Only Nissan's name is on the offer, however, because it reportedly has the cash on hand to make a deal, while Renault has around $5 billion of debt on the books. Nissan also already has a partnership with Chrysler in which it will get a version of the Dodge Ram full-size truck to replace the Titan and in return supply Chrysler with a new small car. A potential Chrysler/Nissan/Renault mashup makes much more sense than combining two American automakers whose products overlap and are both in bad shape right now. But sense doesn't mean much when companies are out to make money, and Cerberus may not be interested in a deal with Nissan that keeps it a player in the auto industry. The investment firm reportedly still favors a deal with GM that would essentially fill its pockets with cash and absolve it of any responsibility for the house that Walter P. built.

posted : 10/22/2008 @11:01:11 PM

ˆ Cerberus could sell Jeep to Renault

tags : chrysler , chrysler gm merger , chrysler llc , chrysler renault , chrysler sale , chryslergmmerger , chryslerllc , chryslerrenault , chryslersale

The latest rumors regarding Cerberus-owned Chrysler and its possible sale point to the breakup of Chrysler's assets, and in particular its brands. General Motors may be interested in bits and pieces of its cross-town rival, but perhaps not the entire automaker. Jeep is considered Chrysler's most valuable asset and was purchased by the automaker from Renault in the '80s, around the same time that AMC ceased to exist. A similar scenario may put Jeep back in the hands of Renault. This purchase could allow the French automaker an easier entry back into the U.S. market with dealerships and excess production capacity leftover from Chrysler. General Motors main interests are rumored to be the minivan line along with some production sites, including the plant in Mexico that assembles Dodge Ram trucks. In exchange for the pieces of Chrysler that GM is interested in, the automaker could fork over its remaining 49-percent stake in GMAC to Cerberus. It's clear that all companies involved are still in negotiations, and it's completely possible that nothing changes hands at all. Round 'n round we go...

posted : 10/18/2008 @7:50:10 PM

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