• Oct 22nd 2008 at 10:28AM
  • 43
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.

UPDATE: Some people have asked about what will happen to Daimler's remaining 19.9% of Chrysler LLC if Cerberus makes a deal with either GM or Nissan, and reports indicate that Chrysler is actively seeking to buy the rest of Daimler's stake before any deal is made. We're guessing the German automaker is just about ready to relinquish its rights to Chrysler and get as far as away from this cluster **** as possible.

[Source: The Detroit News]

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    • 1 Second Ago
      • 6 Years Ago
      Is the 20% offer going to Cerberus or to Daimler?
      • 6 Years Ago
      Thank God. Nissan fits in with what Chrysler wants to be far better than GM ever will.
      • 6 Years Ago
      I like this split better:

      Renault takes Dodge and markets Dogde trucks alongside Nissans and Nissan cars alongside Dodges. (I believe that is language of the current trade they had planned)

      GM takes Jeep and sells off-roaders alongside Hummer.

      GM takes Chrysler and sells alongside Pontiac (G8, Charger, Challenger on common platform?)
        • 6 Years Ago
        Yeah, that didn't really come out anything close to how I intended.

        I think 'Ram Trucks' could be sold as a brand. Kinda like 'Viper' is being sold off.

        'Dodge' is a name necessary for keeping with the cars with history behind them: Challenger/Charger.

        Even if Cerberus dumps the whole brand, I'd like to see something where at the very least the Ram and Challenger survive.
        • 6 Years Ago
        Wow. you are stupid.
      • 6 Years Ago
      Okay. I see the same two "outcomes" tossed around a lot these days as the only two possibilities of a Chrysler merger.
      1. That if GM gets them, they just take the cash and gut the rest, Boo. OR:
      2. if Nissan/Renault gets them they keep Chrysler in take in all its glory. Yea!
      What about the fact that currently Chrysler is not doing very well in the market, doesn't really have anything exciting coming in the pipeline and is losing market share? This is what people want to stay intact? I bet most people saying this have no stake in the company don't work for them, don't own or plan to own a Chrysler but just want them there just because its cool to have the big Big 3. Well that isn't going to cut it. IF GM can stay healthy by getting the cash and keeping the parts of Chrysler that are viable, then that is better then losing the whole thing later on down the line if the the whole company were to BK.
      • 6 Years Ago
      Couldn't you find an older logo for Renault? That one is from 1923!
      • 6 Years Ago
      This buyout/takeover of Chrysler by GM smells of desperation from a cashflow problem within the General's house. The problem is, GM's balance sheet looks lousy, the stock value is in the dumper and nobody is going to step up to loan them the money to make this happen. The Goverment is not going to kick in taxpayer money to encourage a deal certain to result in the loss of tens of thousands of good paying jobs ! This deal is a dead duck; ain't going to happen in today's credit market.

      Now the Nissan-Renault deal actually makes some financial sense. Ghosin buys the Mercedes interest and locks-up platform sharing/manufacturing facilities rationalization with Chrysler. There are too many Dodge/Chrysler dealers and not enough Nissan outlets.
      There are already agreements in place for Dodge to make the next Titan and Nissan to provide a new compact for Dodge/Chrysler. The Altima would be a perfectly good platform to replace the dreadful Sebring/Avenger twins with something more competitive.

      This could explain why, after investing millions in the projects, Chrysler has pulled the plug on the Phoenix V6 engine and the DSG transmission projects. With Nissan sourced engines and transmissions it's just not necessary. It's really the only logical explaination !
      • 6 Years Ago
      I agree it's a better deal for Chrysler. With Nissan partnership, Chrysler can finally have a compact and sub-compact cars while their mid-size cars would improve mechanically and in quality.
      With 20% belongs already to Daimler and Nissan's 20%, Cerberus needs to contribute to Chrysler instead of trying to merge it with GM.
      • 6 Years Ago
      It looks like to me a much better idea that nissan-renault acquires chrysler since this help to make business on the American market, Chrysler has good cars, and good recognition, which they needs is quality and technology, something that Nissan and Renault already have, and not that kill her!
        • 6 Years Ago
        Chrysler scors consistently below average in qulaity and reliabilyt and has almost no presence outside of the United States and Canada. Unless you think the US market will make a Lazarus like return owning a US heavy car maker has little value.
        I'd prefer Vauxhaull/Opel from GM rather than Chrysler.
      • 6 Years Ago
      Well, I'm going to go against the grain and say "RENAULT-NISSAN!!! DON'T DO IT!!!!!"
        • 6 Years Ago
        Nah, maybe they would let Carlos Ghosn take over and we could be reading a marvel comic about how he turned Chrysler into a profit.

        If he did that I would probably refer to him as god.
      • 6 Years Ago
      Wow...what an interesting predicament!

      If I was Cerberus: I'd sell Chrysler to GM & obtain at least a 90% stake in GMAC.

      If I was GM: I'd buy all of Chrysler from Cerberus & Daimler. I would continue the partnership/deals with Nissan-Renault to build a larger fleet of smaller, more fuel efficient models and continue to make profits from the Ram platform. Depending on required capacity for Nissan's version of the Ram, those assembly plants can remain open.
      • 6 Years Ago
      Oh I really hope this is how it turns out. Cerberus needs to calm the hell down.
        • 6 Years Ago
        I'm starting to think making the company burn would be better if the taxpapers don't pay for any benefits. This way it forces UAW and other unions to take responsibility for driving Chrysler into the ground. This might prevent complacency in the workforce in the future.

        Not many solutions for the management though. This may be the stupidest thing I've ever conceived of but how about making stock options the only payment for management if the company is unprofitable?
        • 6 Years Ago
        @Judy Zik

        Are you actually insinuating that Chrysler designers could HELP Nissan? Wow that's rich!
        • 6 Years Ago
        "Chrysler is down like everyone else, but the major reason they're 'down' is because they killed off 4 vehicles, and they don't sell to fleets in major numbers."

        They killed off model lines because they were not selling and fleet sales were a money loser.

        "Chrysler sales in every region BUT the USofA is up up up, especially in Canada and Mexico."
        Won't make up for US declines.

        "The other reason they need to stay is simple. Hundreds of thousands of jobs, directly and indirectly. Think the economy is crippled now?"

        Fine but why executive pay and lavish labor contracts shouldn't be taxpayer liabilities. Cut pay renegotiate the labor contracts close dealers then America will get behind a bailout 100%.
        • 6 Years Ago
        This is the right type of merger for all the right reasons. Nissan and Renault already have their hands in Chrysler and a CEO who is known for amazing turn arounds. Chrysler has been suffering from a lack of leadership. Nissan gets ownership of the Truck platform they wanted. Renault gets a North American dealership pool that in some cases has some experience selling and servicing their products. More importantly Chrysler gets access to some far more competitive platforms for it's existing products and some ready for sale small cars.

        Personally my biggest problem with Nissan cars has been that most of them look ugly and boring and I hate that god awful inkjet wood trim. I like to think Chrysler's stylists might be able to come up with some pretty cool looking cars on the same platforms using some of the cash Chrysler has on hand.

        If this merger went through Chrysler might go from my bottom pick to survive of the Detroit three to the top.
        • 6 Years Ago
        Why does Chrysler need to stay? Auto sales are down almost 30% rendering many carmakers redundant in a smaller US market that is turning away from larger cars and trucks. Chrysler can stay but not in its current bloated form.
        • 6 Years Ago
        Chrysler is down like everyone else, but the major reason they're 'down' is because they killed off 4 vehicles, and they don't sell to fleets in major numbers. Chrysler sales in every region BUT the USofA is up up up, especially in Canada and Mexico.

        The other reason they need to stay is simple. Hundreds of thousands of jobs, directly and indirectly. Think the economy is crippled now?
      • 6 Years Ago
      PLEASE Nissan Renault, save Chrysler! You need their trucks, Renault needs their N.American dealer network, they need your small and mid size car platforms! It's the best thing for all involved! Frylock350, you nailed it in your post on page 2. Carbolt, your lame ideas about pushrods and the HEMI being "dinasaurs" was soundly refuted. DOHC technology is only 10 damn years newer than OHV technology, and the HEMI is competitive with smaller higher tech engines in terms of power and efficiency. It works, get over it. You are just a hater of the HEMI and probably Chyrsler and all things domestic, so just come right out and say so.
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