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While the proposed GM-Chrysler merger is still being speculated about, another player - Nissan - now seems to have jumped into the fray. The Japanese carmaker is said to be looking at picking up a 20% stake in Chrysler, bringing the troubled American car manufacturer into the Renault-Nissan alliance.

Nissan is said to have already made an offer to Cerberus Capital Management, which holds about 80% percent of Chrysler, though according to various sources, Stephen Feinberg (Cerberus founder and CEO) would rather do a deal with GM.

With slowing sales worldwide, Nissan is also looking at cutting production at some of its factories, and is asking its workers in some locations to take leave without pay. In the US alone, Nissan’s sales have dropped by 37% this year. In such a grim economic scenario, it seems incomprehensible for Nissan to pick up a 20% stake in Chrysler.

[Via: indiaautomotive]