• Nov 3, 2008
If Cerberus is ever going to shed itself of Chrysler, it looks like a deal will happen with soon-to-be former rival General Motors. Automotive News is reporting that no further talks have been scheduled between Nissan/Renault and the Auburn Hills-based automaker, as Cerberus has determined that the General can provide a sweeter deal that may also be better for the auto industry. It doesn't help that Nissan/Renault CEO Carlos Ghosn has decried that a deal between the two doesn't make sense during these shaky economic times.

We've never been at the table of a multi-billion dollar negotiation before, but we're pretty sure it's better to be sitting across the table from more than one company that wants what you've got. At this point, the once preposterous idea of GM merging with/buying/devouring Chrysler seems likely, and only a presidential election and a few billion dollars stand in the way of its completion.

[Source: Automotive News, sub. req'd]


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  • 41 Comments
      • 6 Years Ago
      It makes perfect sense for the companies involved. GM wants the cash and a few products from Chrysler.

      Cerebus wants GMAC and some federal cash.
      • 6 Years Ago
      Is Renaults logo really a shower drain? How Ironic...
        • 6 Years Ago
        yes, from 1923 to 1925 it was.

        Just google "renault logo" for reference :)
      • 6 Years Ago
      The auto industry's current mess was more than 30 years in the making and solutions, while some will be short-term, must look at the long term. Even before the sales meltdown there was a worldwide surplus of production capacity, the current situation has only made things worse. With China, India, and possibly Russia seeking to increase capacity, the situation will only get worse.

      Maybe you'd all like to take a look at my version of an alternative universe for Chrysler, an alliance, merger, or whatever you might like to call it with Fiat, yes Fiat. What does Chrysler need yesterday? Competitive B- and D-segment cars, which Fiat has. What does Fiat need? A North American footprint and a means/infrastructure through which Alfa Romeos can be sold here.

      Sound crazy or far fetched? Maybe not as much as you might think. Take a look at this: http://tinyurl.com/at-rescuing-chrysler

      Fiat and Alfa Romeo have come a long way since exiting our shores; this may be the best way to save Chrysler, its employees, and its dealers. The ripple effect of Chrysler being dismembered is almost too horrific to imagine.
      • 6 Years Ago
      Two union-bound companies merge to form one debt-ridden union-bound company. And there's no way Congress will let them get rid of the unions unless they file Chapter 11. And it's likely Congress won't even force them to get rid of their horrible management.

      No good can come of this.
      • 6 Years Ago
      Seriously? Doesn't make a lick of sense from an outsiders perspective. Whats really going on behind the scenes?
        • 6 Years Ago
        Cerberus wants the rest of GMAC, so it can benefit from the financial-sector bailout.

        GM wants Chrysler for its cash, and possibly its capacity. Mostly the cash though.
      • 6 Years Ago
      This change in courtship is good news for Renault-Nissan.

      We admit it, we are a load of armchair product-planners, and some of us just don't want the product offerings and reputation of Renault-Nissan contaminated by any involvement with Chrysler, a geriatric brand that, fairly or not, Americans born after 1962 can barely pronounce without dissolving into giggles; a brand family that has not only been effectively betrayed by ownership twice now, but whose products have not in memory made such a poor competitive case for themselves.

      A few have mentioned it here and it is a little unpleasant to consider, but the fates currently befalling Chrysler and GM were a long time coming. We watched as young kids as they tried to sell our parents on stuff that was plainly inferior to Japanese and German cars but not competitively priced.

      The healthiest outcome for America and her car builders and buyers would be if Chrysler just went away. They're already largely irrelevant, so it should be a shorter trip to follow Plymouth and Oldsmobile into oblivion (thus showing the way for Mercury).

      Chrysler's defenders make it sound like we'll be swallowed into a vortex if Chrysler disappears. We won't. We'll adjust. It'll take a day. At most.
        • 6 Years Ago
        AZZO45b-

        I was being figurative. I think that's pretty plain to see.

        You agree then that seventy-five thousand redundancies is a lot of workers and families in pain. And a state - Michigan - already hurting from factory work going elsewhere.

        What a compelling case for offering cars that buyers actually want.
      • 6 Years Ago
      I hate seeing Chrysler in this predicament. Do they really know what will happen if they merge with GM?
      • 6 Years Ago
      That is truly disenheartening.

      I really wanted to see Chrysler become Renault's US arm...
      • 6 Years Ago
      I don't understand what people were expecting Renault and Nissan to do but start selling rebadged Renaults and Nissans as Chryslers if they got Chrysler. How is that exciting and titillating compared to what "might" happen if GM gets them?
      If GM were to gut Chrysler the only thing that would be missing is all the rental Sebring, Avengers, Magnums, etc etc. I doubt most people complaining actually own a Challenger, Viper, SRT or any other remotely cool product Chrysler has. The company is weak and its not going to be able to stay in bussines much longer, something game-changing MUST happen.
        • 6 Years Ago
        Because GM will dump 90% of the white & blue collar staff in Auburn Hills & other locations... Renault Nissan would need a MUCH LARGER percentage of these staffs as they would keep key line ups of the former Chrysler.

        They are working with Nissan on small car programs... Dodge is helping Nissan with select truck programs. The Mini vans are good enough for VW... Renault might use this platform as well.

        Renault could also re-enter the N/A market under a Chrysler network... bottom line is one company offered some LIFE vs. a certain DEATH sentence
        • 6 Years Ago
        "I don't understand what people were expecting Renault and Nissan to do but start selling rebadged Renaults and Nissans as Chryslers if they got Chrysler. How is that exciting and titillating compared to what "might" happen if GM gets them?"

        +1

        "I doubt most people complaining actually own a Challenger, Viper, SRT or any other remotely cool product Chrysler has."

        +1

        "Because GM will dump 90% of the white & blue collar staff in Auburn Hills & other locations..."

        Massive layoffs are nobody's desired outcome, but they're certainly not endemic to the motor trade. Not only is it not Renault-Nissan's job to clean up DaimlerChrysler's picked-over remains, but they're probably quite looking forward to having one less competitor. Or even two smaller competitors.

        "Renault could also re-enter the N/A market under a Chrysler network..."

        Renault buyers likely more resemble buyers of Volkswagens, Saturns, and Kias. Probably wouldn't cross-shop with Chryslers. Renault already has a North American dealer network: Nissan. They have two, if you include Infiniti. And those brands aren't embarrassing.

        "bottom line is one company offered some LIFE vs. a certain DEATH sentence"

        GM and Chrysler offer a lot of redundant, unwanted product stock. The cuts will come sooner or later.
        • 6 Years Ago
        Lar: You stated you "what ifs" above... try READING what I said. Tourian asked why would Renault-Nissan be better for Chrysler than GM.

        Nissan & Chrysler are already DESIGNING new stuff... not all rebadged products. Nissan dealer network exists for Renault... but N/A manufacturing would be done at ex Chrysler plants.

        "bottom line is one company offered some LIFE vs. a certain DEATH sentence" ....... "LIFE" = Nissan Renault. "DEATH" = GM. Renault Nissan would have reasons to keep some elements of Chrysler... GM doesn't need any part of Chrysler (due to obvious overlap) Both deals not great... but one offered less bleeding than the other.
      • 6 Years Ago
      NNNNNNOOOOOOOOOOOOOOOOOOO!!!!
      • 6 Years Ago
      How about we just let what should naturally occur when a poorly managed company with products nobody wants is on the brink of collapse; let it collapse. Why should more money be thrown at Chrysler/Cerberus for them to squander further? There's a reason Chrysler in on the brink of collapse; they make terrible products that nobody wants. They're dead weight in the automotive industry. Let them die.
        • 6 Years Ago
        Define "sale" Dave... Honda isn't offering "fire sale" prices on their cars. '08 Ridgeline trucks are not discounted $12-15,000... Dodge trucks are.

        Don't compare a company that's about to DIE to one of the solid, automotive success stories. It kills any angle to your argument.... JMO
        • 6 Years Ago
        They still outsold Honda so there are still more people wanting Chrysler products then Hondas
      • 6 Years Ago
      The problem with that "let it die" idea is that Cerebus gets nothing when by selling to GM they'll get something, namely the rest of GMAC.

      Of course, with the current state of financial institutions, I don't really know how valuable GMAC is. But if it's worth anything at all it's a better deal for Cerebus than just letting Chrysler die in place.
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