Sunday, October 12, 2008
Gm Buys Chrysler? No Cerberus Will Trade Chrysler to GM
General Motors Corp. and Chrysler LLC owner Cerberus Capital Management have discussed the possible sale of Chrysler to GM, people familiar with the matter told the Free Press Friday night
GMAC, the Detroit-based longtime finance arm of GM, is now 51% owned by Cerberus.
Cerberus owns 80.1% of Chrysler, though it is reportedly in talks to acquire the remaining 19.9% from Daimler AG.
Pressure on GM and Chrysler is profound.
GM, which turned 100 last month, has lost almost $70 billion over the last three and a half years. Its stock has fallen to lows not seen since the early 1950s.
Cerberus joined the auto industry just before the business headed into its worst era in at least a decade and a half.
Both companies have tried to project a lack of panic, however. Chrysler officials insist that targets are being met and that investors are committed. GM issued a statement on Friday saying it has no plans to seek bankruptcy protection.
It looks more likely that Cerberus will Trade Chrysler to General Motors for the other half of GMAC Financing.