The Detroit News reports that Cerebus Capital Management LP began considering offers for Chrysler less than a year after acquiring it. Following the surfacing last week of the GM-Cerebus talks, Chrysler Chairman and CEO Bob Nardelli sent a note to employees confirming that the company was talking to potential partners.
In recent months, as the industry’s outlook has worsened, Cerberus officials have discussed deals involving Chrysler LLC with General Motors Corp. and with the Renault-Nissan alliance, according to sources familiar with the negotiations. They also have had contacts with Fiat SpA of Italy and India’s Tata Motors, the sources said.
Compared with the merger frenzy of the late 1990s, the tone of the talks is more cautious and guarded, the sources said. But some of them said Cerberus seemed eager to conclude a deal. Delphi Corp. Chairman Robert S. Miller told The Detroit News on Monday that the talks between carmakers reflected the “serious financial pressures the industry is facing.”
Chrysler sales through September have dropped 25% to 1,183,519 units compared to the same period last year.