For months there have been rumors and internal statements about the possible sale of Chrysler, which would result in the end of the current relationship with Daimler-Benz. The partnership that was announced in 1998 has now come to an end. Cerberus Capital Management has won the bid to take over the Chrysler group for $7.45 billion.
Under the new agreement Cerberus will own 80.1 percent of Chrysler and Daimler will retain 19.9 percent of the automaker.
Here are the details according to Automotive News:
-New company formed -- Chrysler Holding LLC.
-Cerberus Capital Management owns 80.1 percent of Chrysler Holding, Daimler AG owns 19.9 percent.
-Cerberus pays $7.45 billion but most goes to Chrysler Holding. By paying debt, Daimler has net cash payout of $650 million.
-Chrysler Holding owns 100 percent of Chrysler Corp. LLC
-Chrysler Corp. is the maker and seller of cars and trucks, and controls Chrysler Financial Services LLC finance arm. It also holds all the pension and health care liabilities.
-Tom LaSorda remains as CEO of Chrysler Corp. Eric Ridenour is COO.
-Wolfgang Bernhard, an adviser to Cerberus, will not be part of Chrysler management.
-UAW chief Ron Gettelfinger supports the deal.
-Deal is expected to close in third quarter.
Chrysler is now the first privately held automaker out of the big three.
It is going to be interesting to see what changes are going to be made and what will happen to the models that share parts with Mercedes-Benz.
Full Story: Automotive News
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DaimlerChrysler De-Merger?
Chrysler on the Auction Block
Chrysler Announces Plans to Invest $1.7 Billion in the U.S. Amid Possible Sale Negotiations
Comments (5)
I wonder if this will improve the quality of these terrible cars. I'm stuck with a P.O.S. Sebring that has just about everything wrong with it and Chrysler not backing its warranties. Just search on the 2.7 Chrysler motor...
Posted by bryan | May 14, 2007 2:28 PM
Posted on May 14, 2007 14:28
This keeps the number of Chrysler cars built in the last 20-something years at zero!
Posted by Remy LeBeau | May 14, 2007 3:06 PM
Posted on May 14, 2007 15:06
Thanks for nothing Dr. Z.
Posted by Rick | May 14, 2007 3:44 PM
Posted on May 14, 2007 15:44
As I say to my friends who get divorced...
"Let's just hope this works out for the best for both of you"
Posted by Obviously DaMinority | May 15, 2007 6:01 PM
Posted on May 15, 2007 18:01
I have one of those supposedly P.O.S. sebrings and its still going strong with 145,000 miles on it. While I think there were more than a few which went out the door with problems are also a lot of people who claim to take care of thier cars but dont.
I would also sooner blame the quick oil change places for replacing the wrong engine and trans fluids. The trans fluid especially since you cant use Type F which most quickie places will put into a chrysler transmission.
Posted by Mitchell | May 21, 2007 2:04 PM
Posted on May 21, 2007 14:04