Chrysler

may join an existing manufacturing and development alliance between Japan's

Nissan

(NSANY)

and France's

Renault

, the

Wall Street Journal

reports.

However, a sale of the auto maker to

General Motors

(GM) - Get Report

is still the preferred path, the newspaper reports, citing people familiar with the matter.

Cerberus Capital

, Chrysler's majority owner, is discussing having Nissan, and possibly Renault, acquire a minority stake in Chrysler. It's not clear if Chrysler or Cerberus would be asked to purchase an interest in the Japanese and French auto makers in order to maintain a cross-shareholding relationship, the

Journal

reports.

For now, Cerberus prefers a deal in which GM takes control of Chrysler. But GM has been unable to secure financing for a deal amid continued credit-market worries and the immediate costs of such a merger. As a result, Cerberus is continuing to pursue the option of having Chrysler team up with Nissan, according to the

Journal

.

Meanwhile, the

Associated Press

reports Nissan plans to cut auto production at two plants in Japan because of sluggish sales in the U.S.

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This article was written by a staff member of TheStreet.com.