Cerberus is still seeking other options for Chrysler LLC. General Motors put a hold on its acquisition efforts. Now Cerberus wants to go back to the Renault SA-Nissan Motor Co. alliance. Hyundai Motor Co. seems to be one of a number of companies with which Cerberus continues to talk about a strategic partnership or the acquisition of some or all of Chrysler's automotive assets, a source familiar with the situation said.
Chrysler will not remain intact, predicted Charles Chesbrough, senior economist for CSM Worldwide, an automotive market research firm. "The next step is that Chrysler would be broken up and pieces taken over by other companies," he said, noting there don't appear to be many suitors interested in the entire company.
Companies would be interested in Jeep and the Dodge pickups, but not the car line, he said. A Reuters report Friday said Hyundai's interest is in the Jeep brand, but The News' source who confirmed the talks with the Korean automaker would not confirm that scenario."As an independent company, we will continue to explore multiple strategic alliances or partnerships as we investigate growth opportunities around the world that would aid in our return to profitability," Chrysler CEO Robert Nardelli said in a statement.
GM didn’t identify Chrysler by name but said it had decided against a "strategic acquisition" that offered cost reduction synergies that had been under consideration. "We have concluded that it is more important at the present time to focus on our immediate liquidity challenges and, accordingly, we have set aside consideration of such a transaction as a near-term priority," GM said in a statement about its third-quarter results.
