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The sale of Chrysler to private equity firm Cerberus could falter due to an unstable global debt market.
Cerberus Capital Management requires £5.8 billion in loans if it is to successfully acquire an 80 per cent stake in US brand Chrysler.
But the cost of borrowing money is rising, and the banks have failed to find buyers for the loan amount that Cerberus needs.
DaimlerChrylser announced that it was selling Chrylser in February, after figures revealed that Chrysler had lost £83 million in 2006. It took three months to agree on a buyer.
DaimlerChrysler maintains that the sale of Chrysler will go ahead as planned, but if the costs of borrowing don't stabilise, Cerberus simply won't have the money to pay for it.
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