From: Reuters
Published April 28, 2008 02:13 AM

Chrysler looking to sell two axle plants: report

NEW YORK (Reuters) - Chrysler LLC is seeking buyers for two Michigan axle plants as it tries to back away from producing auto parts in-house, the Wall Street Journal reported on Monday, citing people familiar with the matter.

In the past two months, Chrysler has approached private equity groups and axle suppliers Dana Holding Corp <DAN.N> and American Axle & Manufacturing Holdings <AXL.N> with an offer to sell the plants for about $400 million, the report said.

The automaker is looking for a buyer to finish building its Maryville plant and close another one known as Detroit Axle, the report said, citing people familiar with the matter.

But so far, there has been very little interest in the offer, the Journal reported.

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Chrysler was taken private last year. Cerebrus Capital Management has an 80 percent stake in the automaker.

Chrysler representatives were not immediately available for comment.

(Reporting by Aarthi Sivaraman; Editing by Quentin Bryar)

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