Daimler sells Chrysler to private equity
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Diesel Wrench
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Daimler sells Chrysler to private equity
http://business.timesonline.co.uk/to...cle1786611.ece
From Times OnlineMay 14, 2007
Daimler sells Chrysler to private equity
Cerberus has emerged victorious in a fierce three-way battle for control of the ailing US car maker with Magna and BlackstoneJoe Bolger and Tom Bawden in New York
DaimlerChrysler, the German carmaker, has confirmed a deal to sell its ailing US unit to Cerberus, a US private equity firm.
The Mercedes-Benz group said it was selling its 80.1 per cent stake in Chrysler to Cerberus in return for a €5.5 billion (£3.8 billion) capital injection.
The sale marks the first time that one of the big-three Detroit car makers is not owned by an industrial player. It also marks the conclusion of a fierce three-way battle against Blackstone, the private equity firm, and Magna International, a Canadian car parts maker.
From Times OnlineMay 14, 2007
Daimler sells Chrysler to private equity
Cerberus has emerged victorious in a fierce three-way battle for control of the ailing US car maker with Magna and BlackstoneJoe Bolger and Tom Bawden in New York
DaimlerChrysler, the German carmaker, has confirmed a deal to sell its ailing US unit to Cerberus, a US private equity firm.
The Mercedes-Benz group said it was selling its 80.1 per cent stake in Chrysler to Cerberus in return for a €5.5 billion (£3.8 billion) capital injection.
The sale marks the first time that one of the big-three Detroit car makers is not owned by an industrial player. It also marks the conclusion of a fierce three-way battle against Blackstone, the private equity firm, and Magna International, a Canadian car parts maker.
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Diesel Wrench
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From: Oklahoma
BOMBARDIER
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Yes, hopefully this will put a positive spin on things....it would be nice if they would smarten up the dealerships.
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Diesel Wrench
Joined: Mar 2007
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From: Oklahoma
anybody know if freightliner is going to be part of the chrysler group or daimler AG???
Associated Press
A Glance at Automaker DaimlerChrysler
By The Associated Press 05.14.07, 10:04 AM ET
Related Quotes
DCX 83.67 + 1.67
A look at automaker DaimlerChrysler AG, the product of a $36 billion takeover of U.S.-based Chrysler Corp. by Germany's Daimler-Benz AG of Germany in 1998, which announced Monday it is selling 80.1 percent of Chrysler to private equity firm Cerberus Capital Management LP.
HEADQUARTERS: Stuttgart, Germany, and Auburn Hills, Mich.
SALES: $200.1 billion for 2006.
EMPLOYEES: 382,000.
PRODUCTS: 4.4 million vehicles per year, including Mercedes and Maybach luxury cars, SUVs and commercial vehicles; Chrysler, Dodge and Jeep brands in United States; Smart compact cars; and Freightliner heavy trucks.
OTHER BUSINESSES: Owns 15 percent stake in European Aeronautic Defence & Space Co. NV, the parent company of planemaker Airbus. Affiliate Detroit Diesel makes medium and heavy-duty diesel engines.
Copyright 2007 Associated Press. All rights reserved. This material
Associated Press
A Glance at Automaker DaimlerChrysler
By The Associated Press 05.14.07, 10:04 AM ET
Related Quotes
DCX 83.67 + 1.67
A look at automaker DaimlerChrysler AG, the product of a $36 billion takeover of U.S.-based Chrysler Corp. by Germany's Daimler-Benz AG of Germany in 1998, which announced Monday it is selling 80.1 percent of Chrysler to private equity firm Cerberus Capital Management LP.
HEADQUARTERS: Stuttgart, Germany, and Auburn Hills, Mich.
SALES: $200.1 billion for 2006.
EMPLOYEES: 382,000.
PRODUCTS: 4.4 million vehicles per year, including Mercedes and Maybach luxury cars, SUVs and commercial vehicles; Chrysler, Dodge and Jeep brands in United States; Smart compact cars; and Freightliner heavy trucks.
OTHER BUSINESSES: Owns 15 percent stake in European Aeronautic Defence & Space Co. NV, the parent company of planemaker Airbus. Affiliate Detroit Diesel makes medium and heavy-duty diesel engines.
Copyright 2007 Associated Press. All rights reserved. This material
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Diesel Wrench
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From: Oklahoma
from http://www.greencarcongress.com/
Cerberus is paying "only" $7.4B but is also assuming $18B in pension obligations. Daimler retains 19.9% as well. The Chrysler Corporation that "merged" with Daimler is a money loser. Hindsight is 20-20 Daimler management would be hailed as geniuses if the value of the Chrysler unit had gone up, well some investments appreciate and some don't. Daimler decided to stop throwing good money after bad and cut their losses. Intelligent people recognize mistakes and learn from them.
Cerberus already owns 51% of GMAC so it will increase its presence in auto financing, which is usually profitable, as well as realize savings by combining GMAC with Chrysler Financial.
The chairman of Cerberus is John W Snow former US Secretary of the Treasury under the current President Bush.
Cerberus already owns 51% of GMAC so it will increase its presence in auto financing, which is usually profitable, as well as realize savings by combining GMAC with Chrysler Financial.
The chairman of Cerberus is John W Snow former US Secretary of the Treasury under the current President Bush.
Last edited by Maj Easy; May 15, 2007 at 03:30 AM.
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