Chrysler Group is nearing the finish line when it comes to its deal to be sold to Cerberus Capital Management for $7.4 billion. Chrysler Group Chief Executive Tom LaSorda reportedly said Friday the deal was "very, very close" to a closing. The necessary funding is in place as of Friday for Cerberus' 80% purchase of the fourth-largest automaker in the U.S, according to Reuters. Talks must have improved since July 18 when TheDeal's senior writer Ron Orol's reported that Standard & Poor's Leveraged Commentary & Data said the $12 billion financing for Chrysler Automotive was in trouble. When Cerberus owns Chrysler, one thing the private equity company will certainly do is lower costs. LaSorda pointed out on Friday its U.S. hourly labor costs, including health care, are some $30
per hour higher than equivalent costs for Japanese automakers led by Toyota Motor. — Gerald Magpily
See Reuters posting via CNNMoney
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