According to sources familiar with the talks Carlos Ghosn, CEO of Renault and Nissan, has sent a formal proposal in recent days including a revised copy of an agreement prepared by Cerberus. Ghosn has proposed to acquire 20 percent of Chrysler LLC and bring the American automaker into his French-Japanese partnership.
Insiders say that Nissan will acquire the stake since it has cash on hand, whereas Renault has debts of more than $5 billion.
Nissan and Chrysler both are working on join projects including a small car for Chrysler and a next-generation Titan pickup for Nissan. While the two work well together, sources say that Cerberus CEO Stephen Feinberg favors GM, thinking of it as a good solution to the sour U.S. auto industry.
Source: Detroit News