Actually, Chrysler was owned by private equity firm Cerebus Capital Management when the government bailed them out and forced the sale of the company to Fiat. It was the worst investment ever made by a private equity firm. Cerebus lost their entire investment as a condition of the Treasury Department's bailout of Chrysler in 2009.

In 2007, Cerberus purchased an 80% stake in Chrysler for $7.4 billion, promising to bolster the auto maker’s performance by operating it as an independent company. In 2008, the Cerebus plan collapsed due Chrysler's inability to meet any of the Cerebus financial projections and a lack of capital. In response to questioning at a hearing before a House committee in December, 2008, Chrysler President and CEO Robert Nardelli said that Cerberus' fiduciary obligations to its other investors and investments prohibited it from injecting any more capital in Chrysler. Those were fancy words for saying that Cerebus had no intention of throwing good money after bad.

In March, 2009, it was announced that Cerberus Capital Management would lose its entire equity stake and ownership in Chrysler as a condition of the Treasury Department’s bailout deal. Cerberus, which continued to own Chrysler Financial was required by Treasury to inject the first $2 billion in proceeds from its planned sale of Chrysler Financial to secure a $4 billion Treasury Department loan made to Chrysler. In exchange for obtaining that loan, Cerebus was forced to promise many concessions including surrendering equity, foregoing profits and fees, and giving up board seats. Cerebus no longer has anything to do with Chrysler or Chrysler Financial. The firm, named after the mythological three-headed dog who guarded the gates of Hell exited what was the worst investment on record by any private equity firm with their tails between their legs.

Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by financier Steve Feinberg. Former U.S. Vice President Dan Quayle is a senior partner with Cerebus. The firm's headquarters are located at 299 Park Avenue in New York City.