After General Motors announced it would not make a first round bid on the company, the remaining bidders include, Canadian auto parts supplier Magna International Inc. which is thought to have teamed up with private equity group Ripplewood.

Hedge fund investors and private equity firms Cerberus Capital Management and a combination of Blackstone Group and Centerbridge were also in the frame.

People familiar with the matter have told Reuters that Cerberus, Blackstone and Magna have emerged as the leading candidates for Chrysler Group, now the No. 4 U.S. automaker.

GM also had spoken to Chrysler about expanded cooperation in vehicle development or a potential acquisition, according to those familiar with the talks.