Monday, April 28, 2008

Chrysler Seeks to Unload to Axle Plants

Chrysler is seeking buyers for two Michigan axle plants as it tries to back away from producing auto parts in-house, The Wall Street Journal reported.

In the past two months, Chrysler has approached private equity groups and axle suppliers Dana Holding and American Axle & Manufacturing Holdings with an offer to sell the plants for about $400 million, the report said.

The automaker is looking for a buyer to finish building its Maryville plant and close another one known as Detroit Axle, the report said, citing people familiar with the matter.

But so far, there has been very little interest in the offer, the Journal reported.

Chrysler was taken private last year. Cerebrus Capital Management has an 80 percent stake in the automaker.

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