Chrysler and Renault/Nissan end talks

Cerberus Capital Management has ended talks with the Renault/Nissan alliance after Cerberus openly acknowledged that it prefers a deal with GM. Source familiar with the talks said that there are no more talks scheduled between Cerberus and Renault/Nissan besides product sharing.

Cerberus feels that it is financially more advantageous for it to pursue a deal with GM and said that it is also better for the U.S. auto industry and workforce. The only hurdle to a deal, according to a GM official, is coming up with government loans or $5 billion in loans from the Energy Department.

Renault/Nissan proposed to purchase 20 percent of Chrysler as well as buying the Jeep brand from the Detroit automaker. Both automakers declined to comment on the reports.

Source: Detroit News