facebook
twitter
search
search

Renault-Nisan moves in on Chrysler-GM

Oct. 22, 2008 at 4:44 PM
| License Photo

DETROIT, Oct. 22 (UPI) -- The French and Japanese Renault-Nissan alliance has proposed purchasing around 20 percent of Chrysler LLC, sources said.

Cerberus Capital Management, which owns Chrysler, is currently discussing a merger deal with General Motors Corp. But, Carlos Ghosn, chief executive officer of Renault SA and Nissan Motors Co., has revised a Cerberus proposal and sent it back to the firm for review, The Detroit News reported Wednesday.

If the deal is struck, Nissan would purchase the company shares, as Renault is currently carrying more than $5 billion in debt, the News reported.

Although Nissan and Chrysler have agreements in place to build vehicles for one another, Cerberus CEO Stephen Feinberg is said to favor a deal with GM, the News said.

GM could fully absorb Chrysler or establish it as a subsidiary with Cerberus taking a stake in the new company, the News said.

"The key to any deal is the availability of financing to fund present cash burn rates and substantial merger costs," industry analyst Itay Michaeli told the newspaper.

Topics: Carlos Ghosn
Latest Headlines
Top Stories
Crude oil prices extend losses
Turkish oil pipeline from Iraq bombed
Chevron aims at cost reductions of $1 billion
Greenpeace again stands in Shell's way to arctic
Texas oil production up year-on-year