Report: Chrysler financing unit may be sold

The financing arm of the Chrysler Group, the American division of Daimler Chrysler, could be sold as its parent company considers options, Dow Jones reported on Tuesday.

The report quoted Daimler Chrysler's Chief Executive Dieter Zetsche as saying that Daimler Chrysler was keeping all options open regarding the future of the Chrysler Group.

Speaking during the Merrill Lynch Global Automotive Conference in Geneva on Monday, Zetsche said the same held true for the financing arm.

General Motors last year sold a majority stake in its financing arm, the General Motors Acceptance Corporation, to a group led by the private equity firm Cerberus Capital Management.

Private equity firms like the Blackstone Group, competitors like G.M. and the auto parts supplier Magna International have reportedly expressed interest in Chrysler, according to the report.

The Chrysler Group posted a 1.5 billion U.S. dollars loss in 2006 after turning a profit in 2005. Its financial results were hurt as consumers bought fewer pickup trucks and SUVs as fuel prices increased and the housing market slumped.

2007-03-07