According to "sources familiar with the situation," the Detroit News is reporting that Nissan is proposing to buy 20% of Chrysler and bring the troubled U.S. automaker into its Franco-Japanese alliance with Renault. The decision is before Cerberus Capital Management, which owns 80% of Chrysler.
Nissan has yet to confirm these reports. "This is more of the same noise and we have no comment to make on any of the recent speculations," said Nissan's head spokesman Simon Sproule. In the meantime, General Motors is still pushing ahead with its own talks to acquire Chrysler. Cerberus founder and CEO Stephen Feinberg is reported to still favor a deal with GM.
Nissan has reportedly been involved in ongoing talks with Chrysler over the past year that have so far led to three projects for the mutual supply of vehicles and original equipment manufacturing deals. A similar partnership was proposed by Nissan and Renault two years ago with GM. Carlos Ghosn, CEO of both Nissan and Renault, says that a trans-continental alliance between his companies and a major American automaker would benefit everyone. Since forming their equity tie-up in 1999, Nissan and Renault have saved billions in costs each year. Source: Automotive News