Report: Renault looking to acquire Jeep

Posted Fri Oct 17 2008 4:15 AM by Kenneth Hall

2009 Jeep Grand Cherokee
Renault sold Jeep to Chrysler back in 1987 but is looking to acquire it once again for new SUV platforms

Last weekend a report emerged claiming Chrysler’s current owner, Cerberus Capital Management, was looking for a potential buyer for the Auburn Hills carmaker and had entered negotiations with General Motors. Chrysler’s CEO Bob Nardelli confirmed on the following Monday that negotiations with other parties "interested in exploring future possibilities” did take place but said no final decision had been made.

While it has been known that GM had been in talks with Cerberus for several months, it has only now come to light that there are several other parties interested in acquiring Chrysler. Speaking with Reuters, a person familiar with the talks revealed that Renault, Fiat and Tata Motors, have all been in contact with Cerberus over a possible sale of Chrysler.

According to the source, any deal will likely involve only a partial acquisition of some Chrysler brands and assets rather than a full takeover.

Renault, together with Nissan, is already tied with Chrysler over several platform sharing deals, but this partnership could expand to include utilization of unused capacity at idle Chrysler plants. Renault is also interested in a re-acquisition of Jeep, which it sold to Chrysler back in 1987, the source revealed.

Adding Jeep to its fold could drastically reduce Renault-Nissan's operating costs, while also giving the carmaker a bevy of SUV platforms as well as a launching pad for a reintroduction in the U.S. market. Such a move would be both expensive and risky, but a senior Renault manager revealed at the recent Paris Motor Show that such an idea was being considered.

GM on the other hand is reportedly interested in Chrysler’s Mexican production facilities and its profitable minivan line. GM is also looking to sell its portion of auto-lending firm GMAC to Cerberus, and was also reported to be interested in absorbing Chrysler’s operations as a way to eliminate competition and reduce North American capacity. However, such a move is unlikely given the political fallout GM would receive if it shutdown Chrysler.

Whatever the outcome of the negotiations turns out to be, it is expected that Cerberus will retain a significant stake in Chrysler.

Reader Comments

  • Wed Oct 15 2008 8:16 AM

    NoNameDenton says

    Didn't take Cerberus long to whore out Chrysler.

  • Wed Oct 15 2008 11:54 AM

    Layne says

    Tata I could see, Fiat would be a mistake, and I damn well don't want my Nissans being related to Chrysler products! Yuck! Usually I'm not a brand loyalist, but for Nissan I make an exception lol.

  • Wed Oct 15 2008 4:42 PM

    NoNameDenton says

    I would have no issue with Fiat being here with Chrysler, then Alfa would be in dealerships faster

  • Wed Oct 15 2008 11:49 PM

    InkMaster says

    Still I don't understand why Chrysler decided to get rid of the Viper - it couldn't be their least profitable model, could it? Atleast it was the one thing that 'spiced up' their model range, now its nothing but boring, bland people movers.

  • Fri Oct 17 2008 7:37 AM

    NoNameDenton says

    Was does Renault want Jeep, only really well known in America and SUVs are not popular

  • Fri Oct 17 2008 8:22 AM

    Jim says

    NoName: Nissan/Renault have plenty of cars/min-vans they can sell in the US, but lack the production facilities and the distribution network. Importing from Europe or Japan is too expensive due to currency values.

    Jeep's dealer are usually standalone or paired with Chrysler. If GM kills Chrysler those dealers will need another brand to sell so NIssan/Renault have an instant channel for their vehicles.

  • Fri Oct 17 2008 1:09 PM

    NoNameDenton says

    Nissan has quite a few dealerships, Renault has none because it is not sold here in the States anymore. I know about currency exchange thanks, why VW is building a plant here.

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