Nissan-Renault Out as Chrysler Suitor; Nissan Cuts Workers
February 21, 2007

Scratch Nissan-Renault off the list of potential suitors for Chrysler. The company says it isn’t interested; it has too much on its plate already.

Renault’s top financial officer told investors Tuesday in London that it isn’t interested in Chrysler in any way, shape or form. A company spokesman reinforced the message that to the Associated Press. “As Mr. Ghosn has said, the company right now is as it is today because it has its own problems inside and we're not going outside to look for the solutions," said Madoka Soma said. "We're not in a rush for a partner."

Earlier this month, Nissan reported a 22-percent drop in earnings for the October-December quarter; the company has cut its full-year profit forecast. Renault SA posted a modest half-year profit but sales are softening putting its promised recovery in jeopardy.

In announcing those financial results, Renault-Nissan CEO Carlos Ghosn said Nissan faces “a performance crisis” that must be fixed “as soon as possible.” He had hinted at a briefing with reporters on the sidelines of the Detroit auto show that 2007 would be a tough year for the company. The company has since cut its full-year profit forecast.

Also on Tuesday, Nissan North America Inc. announced it would cut its hourly work force in Tennessee by about 5 percent through voluntary buyouts and early retirements, due to slower sales of pickup trucks and sport-utility vehicles. The company is offering packages to 6,200 workers in two plants in Tennessee; the company doesn’t know how many will accept them.

Posted by Michelle Krebs at 6:44 AM under Chrysler , Companies | Comments (0) | digg this | Seed Newsvine