Chrysler halts Renault-Nissan talks, favors GM

[Bill <Y1TopBanana73@xxxxxxxxx>]

So much for my "good" news I posted going into the weekend...Cerberus
are idiots!

DETROIT (Reuters) - Talks on a deal to sell Chrysler LLC to Nissan
Motor Co and Renault SA have halted because the No. 3 U.S. automaker's
owner favors a deal with General Motors Corp, The Detroit News
reported on Saturday.

Citing sources familiar with the situation, the newspaper said no
further talks have been scheduled between private equity firm Cerberus
Capital Management LP CBS.UL, which sees a deal with No. 1 U.S.
automaker GM as financially more advantageous and better for the
struggling U.S. auto industry.

In an earlier report, The Detroit News said the Nissan-Renault
alliance had proposed buying 20 percent of Chrysler.

A spokesman for Cerberus declined to comment.

Earlier this week Nissan-Renault Chief Executive Carlos Ghosn
dismissed reports of merger talks with Chrysler as speculation, adding
that it did not make sense to risk cash in the current economic
environment to form a strategic alliance.

GM and Chrysler have been in talks on a possible merger, but according
to sources any deal will have to wait until after the U.S.
presidential elections on Nov 4 as the Bush administration ruled out
providing government funding for it.

Bill M