Cerberus in wide-ranging talks with Renault and GM
Chrysler LLC has had talks with Renault SA about a tie-up or a sale, one of a series of potential deals under urgent review that include consideration of breaking up the No. 3 U.S. automaker just over a year after it was taken private, people familiar with the talks said on Thursday.
Cerberus Capital Management CBS.UL has also been talking to General Motors Corp about a transaction in which GM could acquire some of Chrysler's other assets, including its top-selling minivan line, a market segment Chrysler pioneered almost 25 years ago and has long dominated, one source said, Reuters reports.
The contacts between Cerberus and automakers, including GM and Renault, remain wide-ranging and preliminary but have been given urgency by the sharp downturn in auto sales that has forced Chrysler, GM and Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) to take steps to cut costs and shore up their cash holdings.
Chrysler and GM had no comment. A representative for Renault could not be immediately reached for comment.