Talks between Chrysler and Renault-Nissan have reportedly come to an end, as both sides have acknowledged that Cerberus Capital Management, Chrysler’s current owner, as well as CEO Bob Nardelli prefer a tie-up with GM.
No more talks between the parties have been scheduled, reports The Detroit News, although they have not ruled out discussions in the future. Nissan and Chrysler are already tied over several platform sharing deals, and these are expected to be expanded upon in the near future.
According to sources, GM is looking at a full acquisition of Chrysler, though this would depend heavily on whether or not it could secure financing. During the past week a Treasury official confirmed that the government would not lend any additional funds to GM or Chrysler to help facilitate a merger.
Most industry experts say a GM-Chrysler deal would lead to drastic job cuts at Chrysler because of the huge overlap between the two carmakers. By contrast, if most of Chrysler’s assets went to Renault-Nissan the majority of its U.S. jobs and operations would likely stay intact. The only problem is that Renault-Nissan is reportedly looking for just a 20% stake in Chrysler, an option both Cerberus and Nardelli have dismissed.
While an outcome for the deal was initially expected before the presidential elections, the source confirmed that the talks have since been put on hold.