Chrysler's New Owner Warm to Ownership, Decidedly Cool to U.S. Fuel-Economy Regs

The chairman of Cerberus Capital Management, the company acquiring Chrysler Group, told an audience in Michigan this week that he believes in the automaker's turnaround plan and intends to make the Cerberus ownership of Chrysler a long-term relationship. John Snow also spoke out strongly against federal legislation that would toughen fuel-economy standards, saying it would be "far better" if automakers could decide "what products to produce" based on market demand.

Quoted in the Detroit Free Press, Snow said an alternative fuel-economy standard change proposed by U.S. Rep Baron Hill of Indiana would be "conceivably achievable." That proposal calls for a 32-35-mpg standard for cars and trucks by 2022.

DaimlerChrysler chief Dieter Zetsche was quoted by Reuters today as saying "everything is on track and it works according to plan" in the Cerberus acquisition of Chrysler.

Cerberus Capital Management is purchasing 80.1 percent of Chrysler in a $7.4 billion deal.