Cerberus Capital hopes to sell auto lender Chrysler Financial

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Off-road driving with an open air vehicle provides another kind of experience for many off-road enthusiasts and fans. For this sake, Ford is planning to offer a version of the...
by - January 16, 2017
For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 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