Chrysler chief expects sale to go through

July 25, 2007 at 5:29 PM
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DETROIT, July 25 (UPI) -- Chrysler's chief executive said he expects the $7.4 billion Chrysler Group sale to be completed by the third quarter despite financing problems.

Dieter Zetsche told reporters and analysts in a Detroit conference call Wednesday that while he couldn't discuss the details, "We are completely within the anticipated time schedule for the closing."

Bloomberg News reported Wednesday that Chrysler scrapped the planned sale of $12 billion of loans for its automotive business after failing to find demand. It cited investors briefed on the decision earlier Wednesday.

It was reported later that the investment banks involved in the deal, including J.P. Morgan Chase & Co., would fund $10 billion of loans themselves, the Detroit News said.

In addition to the banks, Cerberus Capital Management, which is buying Chrysler, and DaimlerChrysler agreed to assume $2 billion of loans.

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