agent Entrepreneur logo
MenuMENU
SearchSEARCH

Cerberus Said to Seek Buyers for Auto Lender Chrysler Financial

November 24, 2010
2 min to read


Cerberus Capital Management LP is seeking buyers for auto lender Chrysler Financial, which the private-equity firm acquired as part of its takeover of Chrysler LLC in 2007, said two people with knowledge of the matter.


Cerberus in recent days began soliciting interest in the Farmington Hills, Michigan-based business from large banks, said the people, who spoke on condition of anonymity because the discussions are private, reported Bloomberg. The former lending arm of Chrysler has a book value, or assets minus liabilities, of about $6 billion or $7 billion, the people said yesterday.

Ad Loading...


A sale of Chrysler Financial would represent another step in unwinding Cerberus founder Stephen Feinberg’s bet on the U.S. auto industry. His takeovers of General Motors Corp.’s auto lender in 2006, followed by Chrysler the following year, preceded a decline in U.S. auto sales that sent both carmakers into bankruptcy.


Feinberg, 50, subsequently lost control of both GMAC and Chrysler and held on to Chrysler Financial. The lender repaid its $1.5 billion in U.S. Treasury Department bailout funds last year and in July sought to return to large-scale lending.


Peter Duda, a spokesman for Cerberus, declined to comment yesterday. A representative of Chrysler Financial didn’t return a call left after regular business hours yesterday.


Capital One Financial Corp. and Banco Santander SA are among the banks that have acquired U.S. loan portfolios this year. McLean, Virginia-based Capital One bought a credit-card portfolio from General Electric Co., and Santander bought a $4 billion car-loan portfolio from HSBC Holdings Plc.


Chrysler Financial Portfolio

Ad Loading...


Chrysler Financial had $26 billion of loans and had issued less than $100 million of new loans in the first half of this year, a person with knowledge of Chrysler Financial’s business said in July.


The past few years have seen both GM and Chrysler severed from their captive lenders. GM sold Cerberus a 51 percent stake in GMAC in 2006. Bailouts of that lender, now known as Ally Financial Inc., left the U.S. government in control of the company and shrunk Cerberus’s stake to 14.9 percent.


Cerberus bought a majority stake in Chrysler for $7.4 billion from DaimlerChrysler AG in 2007. Chrysler, the third- biggest U.S. automaker, went bankrupt in 2009 along with General Motors Corp., and Ally supplanted Chrysler as the primary lender for Chrysler dealers.


The surviving Chrysler automaker is now controlled by managers from Fiat SpA.


Meanwhile, General Motors Co. this year got back into captive lending, acquiring subprime lender AmeriCredit Corp. for about $3.5 billion as its new finance arm.

More Industry

Headshot of smiling woman next to Under the Hood video series title
Industry•by Hannah Mitchell•October 30, 2026

California Calling? What's Up With the State's New CARS Act?

Should auto dealers outside of California be concerned about its new price-transparency law? Yes, and you can guide them in the right direction.

Read More →
Hyundai insignia on a vehicle
Industry•October 29, 2026

Tennessee Transaction Latest in Buy-Sell Flurry

Four stores move from a longtime local family business to one of the country’s biggest automotive groups as part of the industry’s continued consolidation.

Read More →
The front end of a Nissan SUV.
Industry•by Lauren Lawrence•October 29, 2026

SUV Joins Safety Rankings

Thanks to a seat belt redesign, the Nissan Kicks has earned a Top Safety Pick award from the Insurance Institute for Highway Safety.

Read More →
Ad Loading...
The outside of a blue Gregg Young Chevrolet dealership.
Industry•by Lauren Lawrence•October 22, 2026

Nebraska Rooftop Changes Hands

The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.

Read More →
Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Ad Loading...
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Ad Loading...
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...