Chrysler’s parent company Cerberus is in talks with Renault-Nissan and Canadian parts supplier Magna about selling its various car brands, according to a report published late Wednesday. Renault-Nissan is said to be interested in Jeep, while Magna might have its sights set on Chrysler and Dodge, or perhaps just the rights to certain models.
Three sources familiar with the discussions told the Reuters news service that talks have intensified about selling Jeep to Renault. CEO Carlos Ghosn is said to be exploring whether acquire assets from Chrysler would jeopardize the company’s access to U.S. government loans. In other words, Ghosn might be interested in trying to save the Jeep brand from extinction, but he’s not willing to risk sinking Renault and Nissan in the process.
Meanwhile, Magna is said to be considering buying Chrysler’s Belvidere, Illinois plant — which builds the Dodge Caliber — plus the tooling and other assets related to the PT Cruiser model. Chinese automakers Chery and Guangzhou are also said to be bidding for rights to the PT Cruiser.
When Daimler put Chrysler up for sale in 2007, Magna was one of the primary bidders for the company. It lost to Cerberus, but it’s conceivable the supplier will now attempt to scoop up models or entire brands from the company for pennies on the dollar. Since Magna is so deeply involved in the manufacturing of Chrysler products, the potential synergies could lead to significant cost savings.
Chrysler was given a $4 billion loan by the U.S. government earlier this month. The company has recently said it will require an additional $3 billion to bridge the gap to profitability.
01/14, 1:03 AM
posted by:
zoomzoomer
Who would have guessed that car companies interested in Chrysler products would start a bidding war over its OLDEST one? Perhaps the PT will live on like the Avanti did..
01/14, 1:36 AM
posted by:
A4
i dont want a french wrangler.
01/14, 1:59 AM
posted by:
cereal
renault, eh?
01/14, 2:04 AM
posted by:
Jordan
so it begins.
01/14, 2:52 AM
posted by:
TomF
So it ends, actually.
01/14, 4:09 AM
posted by:
howsmydriving
PT cruiser was a good car that Chrysler criminally neglected. It created a sensation when it was launched. By rights, we should have long ago had a second generation PT with a better engine and better NVH. Notwithstanding its aging Neon platform and Chrysler’s neglect, well over 1 million units were sold. It must be considered a great automotive success story. It would still be a great car for many countries.
01/14, 7:36 AM
posted by:
Arbiter
“You don’t want a French Wrangler”????? LIke the ones Renault built when they “owned” AMC/Jeep the first time?
01/14, 8:33 AM
posted by:
oldraven
GO MAGNA!
Magna Motor Company, here we come! I hope they start an all Canadian spin-off brand (Magna) as soon as possible, all with the most advanced green tech, which wouldn’t be a problem seeing as they’re teaming up with Ford to work on their EVs.
01/14, 8:38 AM
posted by:
Thunder Chicken
Beat me to it, Oldraven. A Canadian car company would be cool
01/14, 8:44 AM
posted by:
oldraven
Certainly, TC. And after reading it again, it looks good for that prospect. Magna is looking to buy the PLANT, not the brands. I’ve said before, Magna would do better to buy some nameplates and manufacturing facilities, not the brands themselves. There’s no saving Chrysler, in my opinion, but the plants can be a phoenix project with a new brand, funded by moneymakers like the Ram and Caravan.
From my experience, if you put a Maple Leaf on it (and it’s no more than 25% costlier), Canadians will buy it.
01/14, 9:38 AM
posted by:
mayer_ray_nagin
I’d Wrangle with some french chicks if they shave and take a bath.
01/14, 9:48 AM
posted by:
MercMark
sounds like Chrysler is dead, GM or Ford should buy Jeep.
01/14, 10:06 AM
posted by:
yarddog82abn
It’s about time, Renault-Nissan was just waiting for the perfect timing and to buy it cheap. And the Canadian’s, this Magna that you speak of, O.K. I’m in, Chrysler and Dodge you are now Canadian. You will latest will be liked more…
01/14, 11:53 AM
posted by:
Borat
Renault is in financial pickle just like everyone else. I don’t believe it. What will happen with our 4 billion bucks that was pumped into ChryCo?
01/14, 12:23 PM
posted by:
oldraven
Borat, the answer is simple.
*poof*
01/14, 12:58 PM
posted by:
TomF
Borat, they paid December supplier bills with that money. There’s still no cash in the account.
01/14, 4:25 PM
posted by:
Mutant@DCX
Stronach is in trouble too. So other than the Graz thing, ain’t going to happen. More partnerships than anything else. Nissan is building a car for Chry, and Chrysler is building the truck.
01/15, 9:29 AM
posted by:
dzuchowski
when amc owned jeep, renault also owned a percentage of jeep. so basically jeep is going back home to the French again. I cant wait for renault to return with the renault/jeep dealers or will it be nissan/jeep dealers or both