Chrysler Could Be Split Up between GM and Renault-Nissan

Clearly the hottest talk in the auto industry right now revolves around Chrysler LLC Privately owned by Cerberus Capital LP, and suffering major losses so far this year with an overall car and light truck market that doesn’t shed a particularly positive light on its fortunes changing anytime in the immediate future, it appears the latter portion of the “make or break it” scenario is all that’s left.

And “break it” is what Cerberus may do, splitting up Chrysler in into chunks and selling these off to the highest bidders. GM has been in talks with Cerberus for more than a month, the exact details of which are still not known, while previous and concurrent discussions have been taking place with France’s Renault-Nissan.

Such a move, while appearing like a classic corporate raider tactic that Richard Gere’s character Edward Lewis in “Pretty Woman” might execute and Vivian Ward (Julia Roberts) would try to talk him out of, might be the best way to maintain Chrysler’s brands intact, although it’s difficult to see where the namesake brand, Chrysler, would fit into the scheme.

Motors is reported to be most interested in the Chrysler/Dodge Town & Country/Grand Caravan minivans, but there really isn’t anything within the Chrysler/Dodge lineup that GM doesn’t already build a competitor to. No doubt the General is interested in Chrysler’s $11 billion-plus in reserves, but it’s already in the process of shuttering numerous plants of its own, so there’s not much benefit in acquiring more North American production capacity, although Chrysler’s the Mexican facility that assembles Dodge Ram trucks would be a bonus.

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