Investments Are Faltering in Chrysler and GMAC

Chrysler the smallest of Detroit's automakers like so many other companies has suffered from the recent down turn in the American stock market and housing bubble burst. The acquisition of Chrysler by the American private equity firm Cerberus, headed by American financier Stephen A. Feinberg, has been an uphill battle and since its purchase from German based Daimler Corporation for $7.4 billion the now privately held company has sought to cut costs. The new investors have been struggling to improve the performance of the newly named Chrysler LLC, who currently employs around 72,000 people after the massive cuts of about 28,000 employees since May of 2007 but with Feinberg's appointment of Robert Nardelli, former Home Depot CEO, Cerberus is confident their investment in one of the most recognizable American companies. This acquisition looks to be a true test of American capital investment and the deregulated nature of the U.S. economy.