Cerberus Capital hopes to sell auto lender Chrysler Financial

Article by Christian A., on November 25, 2010

Two insiders said that Cerberus Capital Management LP is looking for buyers for Chrysler Financial, an auto lender that the private-equity firm got as part of its takeover of Chrysler LLC in 2007. The sources said that in the past several days, Cerberus has started soliciting interest in the business from large banks.

They reported that Chrysler Financial, which was the former lending arm of Chrysler, has a book value, or assets minus liabilities, of about $6 billion or $7 billion.

Selling Chrysler Financial would mark a further step in unwinding Cerberus founder Stephen Feinberg's stake on the US auto industry.

Feinberg’s move to take over General Motors Corp.'s auto lender in 2006, and Chrysler’s auto lender the following year came before a drop in US auto sales that pushed these automakers into bankruptcy.

Feinberg later gave up control of both GMAC and Chrysler but had held on to Chrysler Financial. Last year, the lender repaid its $1.5 billion in US Treasury Department bailout funds.

And in July, it aimed to return to large-scale lending. Cerberus and Chrysler Financial have yet to comment on this report. [via autonews - sub. required]

If you liked the article, share on:

Comments

Recommended

Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
The North American unit of German premium carmaker BMW is recalling around 19,000 units of its BMW i3 electric vehicle because of the risk of fuel leak. You may ask,...
by - February 22, 2017
A publication by the U.S. Patent and Trademark Office revealed that Honda is still looking into the Project 2&4 Concept. Officially unveiled during the 2015 Frankfurt Motor Show, the Project...
by - February 22, 2017
Barely a month before its official debut, Hyundai gave everyone a taste of what’s to come with the 2017 Hyundai i30 Wagon. Despite what little was shown, it did not...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries