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Oracle of Delphi

Chrysler halts Renault-Nissan talks, favors GM-paper

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DETROIT, Nov 1 (Reuters) - Talks on a deal to sell Chrysler LLC to Nissan Motor Co and Renault SA have halted because the No. 3 U.S. automaker's owner favors a deal with General Motors Corp), The Detroit News reported on Saturday.

Citing sources familiar with the situation, the newspaper said no further talks have been scheduled between private equity firm Cerberus Capital Management LP, which sees a deal with No. 1 U.S. automaker GM as financially more advantageous and better for the struggling U.S. auto industry.

In an earlier report, The Detroit News said the Nissan-Renault alliance had proposed buying 20 percent of Chrysler.

A spokesman for Cerberus declined to comment.

Earlier this week Nissan-Renault Chief Executive Carlos Ghosn dismissed reports of merger talks with Chrysler as speculation, adding that it did not make sense to risk cash in the current economic environment to form a strategic alliance.

GM and Chrysler have been in talks on a possible merger, but according to sources any deal will have to wait until after the U.S. presidential elections on Nov 4 as the Bush administration ruled out providing government funding for it.

Link: http://www.reuters.com/article/rbssConsume...132748920081101

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Earlier this week Nissan-Renault Chief Executive Carlos Ghosn dismissed reports of merger talks with Chrysler as speculation, adding that it did not make sense to risk cash in the current economic environment to form a strategic alliance.

See? Ghosn is a smart boy.

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Of course they halted talks, Cerberus has no interest in Nissan because they can't get GMAC from Nissan! Say what you want about Ghosn but he is a shrewed buisness man that unfortunately doesn't offer what Cerberus really wants- GMAC.

The Dog from Hell (Cerberus) will not entertain anything that is advantageous to the auto industry because Cerberus is not in the auto buisness! They are in the money buisness and unless they can get their hands on the remainder of GMAC, they're not going to be interested.

v/r

Allen

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I can see Nissan being part of the break up of Chrysler is a deal with GM is struck.

Nissan my be interested in plants, the Hemi and trucks GM has not interest in. GM could raise cash by selling these things off to them.

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I can see Nissan being part of the break up of Chrysler is a deal with GM is struck.

Hahaha

Gotta break up Chrysler SOMEHOW....

:AH-HA_wink:

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