Renault CFO: 'We Want No Part in Chrysler'

In the clearest indication yet of the difficult time DaimlerChrysler may have selling off its struggling North American Chrysler unit, the Wall Street Journal is reporting that Renault's CFO, Thierry Moulonguet, told a group of investors that his company, which is in the process of post-merger streamlining of operations with Nissan, is not interested in acquiring Chrysler or becoming involved with the unit in any way. Nissan and Renault have sought an American partner to create a three-headed global carmaker; talks with GM on a possible alliance broke down last year. And in yet another indication of the difficulties parent DaimlerChrysler may have unloading its North American unit, a Feb. 19 report issued by Morgan Stanley analysts claimed that selling Chrysler for €5 billion would actually boost DaimlerChrysler's market value by about €12 billion, or about 20%.

Sources: Wall Street Journal, Reuters
Commentary: DaimlerChrysler Is Disclosing Chrysler's Financial Information to Suitors • Daimler-Chrysler: Does Divorce Really Loom? - Barron's • DaimlerChrysler AG Q4 2006 Earnings Call Transcript
Stocks/ETFs to watch: DaimlerChrysler (DCX), Nissan (NSANY). Competitors: General Motors (GM), Ford (F), Toyota (TM), Honda (HMC)

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Comments

[Malkiel:]

Nissan/Renault is exactly the kind of player which could benefit and make good use of Chrysler. Nissan doesn't seem to be having any problems in the American market, so not having a Renault product presence here is no big deal, but if a Chinese company gets its hands on Chrysler they will punish the second-tier Japanese makers in this market on price.

2007 Feb 21 12:01 PM