Nissan offers to buy 20% of Chrysler

[ifcar]

http://www.autoblog.com/2008/10/22/nissan-makes-offer-for-20-of-chrysler/

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.

[Madman]

Chrysler has also been talking to Fiat and Tata.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081014/AUTO01/810140380/1148/rss25


Cheers,
Madman of the People

[Madman]

This article could also explain Renault-Nissan interest in Chrysler.  A possible return of Renault to North America?

http://online.wsj.com/article/SB122305763163202875.html?


Cheers,
Madman of the People

[565]

Awesome, a Viper GT-R.

Twin Turbo V10 with AWD.  My dream come true!

[Onslaught]

Why would anyone want them in the first place?

[Laconian]

Why would anyone want them in the first place?

They want the rights to patented ChillZone technology.

[Morris Minor]

Why would anyone want them in the first place?

Maybe the government? Nationalize them so taxpayers can pay people to do non-work doing piss-poor jobs building cars nobody wants to buy.

[sportyaccordy]

They want the rights to patented ChillZone technology.

My girlfriend wants to know why this is so funny

[Galaxy]

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.

Daimler has last Friday completly written off it's 19.9% stake in Chrysler valuing it at zero. Of course they would be happy if someone gave them something for it.

[Atomic]

nissan would do wonders for chrysler. a gm merger would be a disaster!

[SVT666]

nissan would do wonders for chrysler. a gm merger would be a disaster!

Nissan ain't doing so shit hot right now Atomic.

[the Teuton]

I think Nissan is the only thing keeping Nissan/Renault afloat right now, too.

[TBR]

Nissan ain't doing so shit hot right now Atomic.

From what I recall Nissan is doing as good, if not better, than anyone.

[SVT666]

From what I recall Nissan is doing as good, if not better, than anyone.

Honda and VW are doing the best I believe.  Both have actually increased sales this year.

[Atomic]

Nissan ain't doing so shit hot right now Atomic.

read today's ny times. a great article about gm - as far as content. the news, discouraging. nissan is doing better than our big three - although chrysler looks great on paper. asia, europe, etc. will be important for chrysler globally.

[TBR]

Honda and VW are doing the best I believe.  Both have actually increased sales this year.

In August Nissan/Infiniti had increased sales 1% YTD, but then sales decreased 35% in September (Nissan's media site doesn't have those numbers up yet and autoblog etc don't list year to date).

Edit- found it, -3.4% YTD. In comparison, VW is down .2% and Honda is down 1.1%.