Chrysler Flirts With Nissan- Renault as GM Seeks Credit

Alliance would keep Detroit automaker intact, but expose Cerberus to more risk
By Clay Dillow,  Newser Staff
Posted Oct 21, 2008 10:21 AM CDT
Nissan-Renault auto alliance's chief executive Carlos Ghosn says his group wouldn't attempt to overhaul Chrysler.   (AP Photo)
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(Newser) – Chrysler is considering joining Nissan-Renault, adding a North American arm to the Japanese-French auto alliance that could rescue Chrysler’s operations, the Wall Street Journal reports. Cerberus, Chrysler’s majority owner, prefers a merger with General Motors, but overlap with a Detroit competitor would likely eliminate half of Chrysler’s 66,000 jobs. A deal with Nissan-Renault would leave Chrysler largely intact.

Cerberus could have Nissan and Renault take a minority stake in Chrysler, though whether Chrysler would return the favor is unclear. Though a deal with GM would vastly reduce Cerberus’ exposure to the volatile auto industry, GM has had trouble securing the financing for a deal amid the ongoing credit crisis.