Thursday, June 14, 2007

Cerberus CEO Plays Up "Possible" Synergies Between Chrysler Financial and GMAC

Posted by Marcie Belles on Jun 13 2007 06:07:16 PDT
In a face-to-face meeting with 16 Chrysler dealer council members, Cerberus Capital Management Chief Executive Steve Feinberg laid out his plan for reviving Chrysler Group, and that includes "possible" synergies between the carmaker's finance unit at GMAC LLC..

Cerberus agreed last month to buy an 80.1% stake in Chrysler for $7.4 billion.

In the meeting, held yesterday at Cerberus headquarters in New York, Feinberg outlined the private equity firm’s commitment to the auto industry. He discussed Cerberus’s primary challenges with the U.S. automaker: poor product-quality scores and an excess of dealerships for dwindling marketshare.

Feinberg also mentioned possible synergies between Chrysler Financial and GMAC LLC, the captive financing company Cerberus bought from General Motors Corp. last year.

Dealers were upbeat about the meeting’s outcome.

"I think Chrysler is in the best hands it’s been in years," said John Schenden, of Pro Chrysler Jeep in Denver and a member of the Chrysler dealer council.

The acquisition is slated to close next month.

Click on "Read More" below for the full article by Detroit Free Press.

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