Jeep Only Pitch By Renault?

It is no secret that Chrysler LLC is for sale and the owner Cerberus Capital Management wants to be freed of its short-lived involvement as a manager of an automotive manufacturer.

Rumors of a pending sale have been heating up with some analysts suggesting the General Motors will get the company while others have said that Tata Motors, Fiat, or even a Chinese manufacturer could make a pitch for the company. Most recently, rumors have flown around that Renault is interested in the company, but only for Jeep.

Renault previously owned Jeep when it was part of the American Motors Corporation during the 1980s, but sold out to Chrysler in 1987. With that move Renault exited the US market, unable to compete against entrenched American manufacturers and rapidly expanding Japanese car companies.

Obtaining a portion of Chrysler LLC might be more palatable to Renault who is joined at the hip with Nissan. A Nissan-Renault-Jeep company would carry a lot less baggage with it while allowing Renault to gain instant access to the US market with its own line of vehicles. The remainder of Chrysler could be auctioned off, perhaps to General Motors who has its eye on Chrysler’s minivans as well as truck manufacturing facilities in Mexico.

Whether that would spell the end of the Chrysler and Dodge nameplates is anyone’s guess, but it could allow GM and Renault to get the portion of the Chrysler pie each one wants.

Cash poor General Motors could buy Chrysler’s assets by selling off its remaining interest in GMAC to Cerberus who already owns 51% of the financing company. GM has little need for any of Chrysler LLC’s other products which overlap what GM sells, but union and government opposition could in the face of massive layoffs and plant closures could make GM’s quest all the more difficult to carry out.  Allowing Renault to take control of Jeep might lessen that blow, but significant cutbacks will still take place.