Nissan doesn’t want to use cash for Chrysler alliance
According to unnamed sources with knowledge of the discussions, Nissan Motor Co. does not want to use its $4.6 billion in cash to acquire a 20 percent stake in Chrysler. The Japanese automaker would prefer a share swap, similar to the cross-ownership alliance it has with French automaker Renault.
Nissan is profitable but wants to keep its cash reserves as a hedge against deteriorating market conditions.
An alliance with Nissan would likely leave more of Chrysler intact, since the two automakers have complementary product lines. Nissan and Chrysler already have agreements for a small car and full-size pickup. However, reports from several sources say Cerberus is “desperate” to shed Chrysler and is said to prefer the reported merger of Chrysler with General Motors in exchange for the balance of GMAC.
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