Chrysler is in talks to sell key assets to Nissan-Renault and Canadian auto parts supplier Magna as the U. S. automaker rushes to restructure after taking a US$4-billion government loan, according to sources familiar with the discussions.
Renault-Nissan and Chrysler, which is owned by Cerberus Capital Management, had some contact about a sale of all or parts of the U. S. automaker last year before Washington stepped in to bail out Chrysler and General Motors in December. The present round of talks has gathered momentum in recent weeks and included discussions about a deal to sell Chrysler’s iconic Jeep brand, sources say.
Renault-Nissan, an alliance headed by businessman Carlos Ghosn, has been looking to clarify whether a deal to acquire assets from Chrysler would jeopardize the company’s access to U. S. government funding, according to an individual familiar with the talks.
Mr. Ghosn has repeatedly said he would not consider a deal that would involve spending cash in an uncertain market. Representatives of Chrysler, Cerberus, Magna and Nissan declined comment yesterday. Renault, which owns a controlling 44% stake in Nissan, could not be immediately reached.
Chrysler chief executive Bob Nardelli said this week he was not preparing the struggling automaker for sale.
But according to three sources, Chrysler has discussed selling its assembly plant in Belvidere, Ill., to Magna in exchange for long-term production contracts. The facility is considered one of the auto-maker’s most valuable plants.
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