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Daimler Wants Out of Chrysler, Totally
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Both Daimler AG and Cerberus Capital Management LP confirmed today that the former company is officially considering selling the latter its remaining 19.9 percent stake in Chrysler, said The Detroit News.
Daimler sold 80.1 percent of its stake in Chrysler To Cerberus in the summer of '07.
Rumor of the transaction leaked out of a German magazine, and Daimler confirmed it earlier today. Cerberus, a New York private equity fund, approached Daimler about a proposed purchase. Cerberus spokesman Peter Duda describes the two companies as "currently in discussions," and maintains that "all existing industrial relationships" between the companies would remain intact if the purchase goes forward. Industrial relationships would include Daimler and Chrysler's joint diesel engine projects, currently underway.
At the harsh ending of what was once touted a "merger of equals," Daimler wrote down the value of its stake in Chrysler from 916 million euros at the close of 2007 to to 171 million euros at the end of June 2008.--Colin Mathews
Daimler sold 80.1 percent of its stake in Chrysler To Cerberus in the summer of '07.
Rumor of the transaction leaked out of a German magazine, and Daimler confirmed it earlier today. Cerberus, a New York private equity fund, approached Daimler about a proposed purchase. Cerberus spokesman Peter Duda describes the two companies as "currently in discussions," and maintains that "all existing industrial relationships" between the companies would remain intact if the purchase goes forward. Industrial relationships would include Daimler and Chrysler's joint diesel engine projects, currently underway.
At the harsh ending of what was once touted a "merger of equals," Daimler wrote down the value of its stake in Chrysler from 916 million euros at the close of 2007 to to 171 million euros at the end of June 2008.--Colin Mathews
Responses (5 total)
By JKD | Posted: Sep 25th 2008, 02:25:31 PM
Phil - If Mercedes kicked 'her' to the curb does it mean they were lesbian?
Yeah, sure guys, Ford and GM got so much stronger while Daimler was "chewing up" Chrysler.
By Phil Dougherty | Posted: Sep 25th 2008, 12:25:27 AM
You guys are so on point! I thought I was the only one who felt that way. Pre-Daimler my wife & I owned four Chrysler products & loved them. Daimler used up Chrysler to fix Mercedes and then kicked her to the curb. This is disgraceful.
By Bill Burke | Posted: Sep 24th 2008, 11:28:34 PM
Dave, How right you are! The press continues to hammer Chrysler when the real villan in all this is Daimler-Benz. Given the new Chryslers' speed in addressing issues and the electric car roll- outs yesterday, I predict success for Chrysler and the other two of the "Big Three". Is it a big maybe? I just think that the products are getting better and most are quite good in a normal market. Surviving this crisis is a hurdle that when (and if) crossed will put Detroit in a more competitive position. This is the time for everyone to come together for the great AMERICAN auto industry. Personally, I'll keep driving my Chrysler products and hope for the best. Foreign products are not an option for me, unless it puts money in the coffers of Chrysler. To my critics, yes I'd buy it if they put a pentistar on a goat.
By gas | Posted: Sep 24th 2008, 10:15:44 PM
Agreed. These two need complete separation. I bet the diesel projects end soon, too.
By Dave | Posted: Sep 24th 2008, 09:41:01 PM
Good! Daimler did nothing but chewed up Chrysler and spit them out. They took all there cash that was saved up, took all there good employees etc and sucked them dry. They made Chrysler a big SUV reliant company, made bad cost reductions that gave them blad exteriors and cheap plastic interiors. Proof is that when Chrysler merged whith Diamler (or more like taken over) they where a strong company when the sold to Ceberus they where a shadow of there former selfs. Good that Ceberus is buyng the rest, that may show faith that they are going to keep them instead of breaking them apart.
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