With rumors of a GM-Chrysler tie-up abounding - and likely to get more intense as the markets open this morning - apparently Cerberus Capital Management, Chrysler LLC’s owner, is seriously interested in acquiring full ownership of lending giant General Motors Acceptance Corporation (GMAC). Cerberus currently owns 51 percent of GMAC while General Motors owns the remaining 49 percent.
Industry analysts suggest that full ownership of GMAC would be a boon for Cerberus, who could then look to divest itself of Chrysler LLC. Cerberus acquired Chrysler’s lending arm, Chrysler Financial, when it purchased the Auburn Hills, Michigan-based automaker from Daimler in 2006.
Most industry analysts have questioned the short- and long-term benefits of a GM and Chrysler merger, but full ownership of GMAC and Chrysler Financial could help Cerberus consolidate the two financial operations. Cerberus would likely then sell Chrysler - either to GM or otherwise - and exit the rapidly deteriorating Detroit auto industry, a move analysts have expected for months now.
“If this were to take place, the winner would be Cerberus,” Maryann Keller, an analyst and head of Maryann Keller & Associates in Stamford, Conn., told the Detroit News.
10/13, 9:55 AM
posted by:
jayjc08
Sad, when a capital management company can’t even turn around Chrysler. Really though, I don’t believe Cerberus was in any way serious about developing Chrysler. Very few new models in the pipeline. And we have yet to see that redone Chrysler Sebring and other models…
10/13, 10:02 AM
posted by:
Z06ified
Maryann isn’t too bright. The only way Cerberus would win is if they sold Chrysler for more than what they paid for it. I don’t see GM or anyone else for that matter, paying more for Chrysler than Cerberus paid. At least not yet. Cerberus would have to turn Chrysler around, showing a profit for 3 consecutive years before they could sell it at a premium. Right now, that seems a LONG way off.
10/13, 10:40 AM
posted by:
johnnycanuck
Oh yeah, everyone’s a winner baby. Ask all those Chrysler employees what they think the odds are they’ll still have jobs in ‘09.
10/13, 3:06 PM
posted by:
yarddog82abn
GM only needs to sell GMAC, Let Nissan have It’s way with Chrysler….
10/13, 3:07 PM
posted by:
yarddog82abn
Some times I fill like calling up the heads of the Big 3 and tell them, “PENDEJOS”
10/13, 6:20 PM
posted by:
beatusmongous
Yardog, I’m sure they get plenty of voice mails from ex-employees saying exactly that, but in every language. Either that, or their secretaries get those voice mails. They probably just erase them, though.