More on Cerberus deal for Chrysler

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Business Week Online notes that while Cerberus Capital Management executives may be sincere in their desire to revive a great American brand, their true goal is to make a lot of money. Cerberus could fare very well, it seems. A price of $7.4 billion seems more than reasonable. Most of it is Chrysler Financial Services, which is solidly profitable. As for the actual car maker, Cerberus has chosen to keep the management team in place, including CEO Thomas LaSorda. To some, that suggests that the sponsor buys into the current restructuring plan. That plan calls for Chrysler to make up to $2 billion in 2009. That would amount a near 70 percent return over about a two-and-a-half-year period. So this could have a happy ending and could make the $7.4 billion seem like a steal. Cerberus faces a tough market, however. Who knows how gas prices will affect the model.  

For more:
- here's the article Business Week Online