Record low auto sales and thefinancial crisis are spurring fresh merger talk about the BigThree U.S. automakers in a new global consolidation round whilethe sales rot is also impacting suppliers and car retailers.



Renault on Friday denied it was in talks to buyJeep from Chrysler. People familiar with the talks said privateequity firm Cerberus was in discussions to sell all or part ofChrysler LLC's operations to the French firm and General MotorsCorp (GM.N: Quote, , Research, ) as it considers a range of deals that could break upthe No. 3 U.S. automaker.



General Motors, Ford and Chrysler, seeking to maximisecash returns while battling with a declining home market due tohigh petrol prices and an economic recession, are expected toput brands both in the United States and overseas up for sale orto seek tie-ups to slash production costs.



'There are no discussions. We are focusing on dealing withthe current market situation,' Renault spokeswoman Frederique LeGreves told Reuters.



Renault has named Patrick Pelata as chief operating officerto leave more time to chief executive Carlos Ghosn to focus onstrategy, including mergers and acquisitions.