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.
