There’s plenty of talk about Chrysler and its potential merger with General Motors. However, there seems to be a new suitor for the struggling automaker.
Nissan and its parent Renault indicated its interest in a stake in Chrysler. While talks with GM are still going on, sources have recently indicated that Renault-Nissan is interested in a 20% stake in the company. Sources also indicated that Chrysler may be broken up in to pieces prior to being merged with another partner.
Nissan seems like a solid partner for the automaker, as it has plenty of cash on hand and because of existing relationships that may provide a better fit. Nissan has already entered a Chrysler partnership in which Chrysler will build the next generation Nissan Titan pickup which needed by Nissan Boston MA, and Nissan will build a small car for Chrysler, which is desperately needed at Birmingham Used Trucks. Sources have also suggested that Renault has an interest in taking back Jeep, which the company sold to Chrysler in 1987.
If Nissan-Renault acquires Jeep, that would leave Chrysler and Dodge for GM, which could actually help Chrysler and remove redundant models from its lineup. It also makes the sales much easier for Chrysler parent company, Cerberus Capital Management.
In the current economic environment, a Chrysler acquisition may be a stretch for GM, who would need significant financing. Nissan however, is in far better shape to acquire pieces of Chrysler as sales at Nissan Boston and other dealers have been much steadier than those at Chrysler dealers.
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