Renault-Nissan steps into the Chrysler game

Renault and Nissan have, according to Detroit News, offered to buy 20% of Chrysler. Nissan would pay its part with cash on hand while Renault would borrow to pay its share. There are already links between Nissan and Chrysler (with Chrysler to sell Nissan small cars and Nissan to sell Chrysler pickups). According to the Detroit News, though, Stephen Feinberg prefers a deal with GM, which would give Cerberus more of a stake in GMAC. The Nissan-Renault deal would keep Chrysler intact as an organization and a brand, and would give it access to Renault’s popular small cars and diesel engines. There would be little overlap between Chrysler and Renault-Nissan, while GM and Chrysler essentially duplicate each others’ carlines, with the exception of the Jeep Wrangler and Patriot. Likewise, Renault has no presence in the United States and Chrysler has almost no presence outside of North America.