Saturday, November 01, 2008

Chrysler Renault-Nissan Talks Halt, Cerberus Prefers GM

by Calculated Risk on 11/01/2008 07:57:00 PM

From Detroit News: Chrysler-Nissan talks halt

Talks between the Renault-Nissan alliance and Cerberus Capital Management LP have stopped as both sides acknowledged Cerberus's preference to conclude a deal for Chrysler LLC with General Motors Corp. ... viewing it as financially more advantageous and also better for the U.S. auto industry.
The WSJ hints that a deal may be imminient:
Speculation continues to swirl that Cerberus is looking to make a move on Chrysler as early as Tuesday but has run into problems in lobbying for federal aid.
And the impact of a merger could be significant:
News of a GM-Chrysler merger has chilled automotive workers throughout the country. Such a partnership would result in the closing of seven of Chrysler's 14 U.S. factories and ... As many as 200,000 jobs could be cut ...