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.
