The funds come several days after GM received its first disbursementEnlarge Photo
Cerberus will also be pumping an additional $2 billion into Chrysler through its Chrysler Financial Unit to help the company when it must pay back the federal loans on March 31st next year. According to one analyst, who spoke with Automotive News, Cerberus is making it clear that it wants to move on from the "automotive side" of Chrysler but remain in the "lending side of the automobile industry", through its stakes in GMAC and Chrysler Financial.
The move is being seen as an "industry-supportive" one from Cerberus and other analysts agree that it should help Chrysler to restructure its operations and gain further federal loans. Cerberus, one of the world's largest private equity firms, was previously seen as shirking its responsibilities to Chrysler by refusing to put more money in the company, however recently Cerberus stated that because of its responsibility to investors such a large investment could not be made without risking their trust.
Cerberus was also keen to point out that its investors did not just consist of upper-class, white collar wealthy individuals, but that "retirees, teachers, municipal workers and ordinary citizens" were all also investors.