Cerberus could align GMAC and Chrysler Financial
No one knows yet what Cerberus is going to do with Chrysler. However, the possibilities probably include quite a few things that wouldn't be normally expected in the car business -- such as GMAC and Chrysler Financial working closely together.
Cerberus hasn't made any mention of such, yet -- that comes from GM CEO Rick Wagoner in his first public comments since Cerberus was announced as the winning Chrysler bidder. Cerberus bought 51% of GMAC last year, and now runs Chrysler Financial. Wagoner's comments, however, were very open and non-committal -- specifically, he said "I think it's possible you could see opportunities for Cerberus-owned Chrysler Financial and Cerberus-owned GMAC to seek out opportunities to work together." GM isn't looking for such a tie-up, it is simply open to "potential synergies" should such cooperation be shown to be in everyone's interests. He did appear sure that such a proposal -- for working together -- would be coming in time. If Cerberus did combine the two, it would rule the auto loan market, taking the number one spot from Ford Motor Credit.
[Source: Automotive News, sub req'd]
Reader Comments (Page 1 of 1)
Aaron 6:00PM (5/18/2007)
this is going to be interesting. daimler was nice enough to strip this off of chrysler back in the day and I'm glad it is coming back..
I can't wait for chrysler to start firing on all cylinders again after falling victim to munchausen syndrome for the better part of the last decade.
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Barney 9:41PM (5/18/2007)
"to strip this off of chrysler"
It was sold WITH Chrysler.
I can see GM's reluctance. GMAC is a very good revenue maker for the holders and a far bigger company. Perhaps Cerberus thinks GMAC is large enough to keep Chrysler Financial in the black.
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MH 5:22AM (5/19/2007)
Don't think there's really a problem keeping Chrysler Financial in the black. As far as I know they have always been profitable.
It's alot easier running a financial services company than trying to make a profit building cars.
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