Gear

Daimler Ditches Chrysler

DaimlerChrysler is no more. The German automaker sold the majority share of the Chrysler unit to private equity firm Cerberus Capital Management LP for $7.4 billion. Just nine years ago Daimler bought Chrysler for $36 billion, so in addition to losing hundreds of millions each year, they sold the company at a nearly a $27 […]

DaimlerChrysler is no more. The German automaker sold the majority share of the Chrysler unit to private equity firm Cerberus Capital Management LP for $7.4 billion.

Just nine years ago Daimler bought Chrysler for $36 billion, so in addition to losing hundreds of millions each year, they sold the company at a nearly a $27 billion loss (prorated).

Cerberus... (expects) to profit on their investment by reducing wages and paring other costs such as pension expenses...

Hello labor union disgruntlement.

So the Big 3 will be American owned once again. Will private management be able to turn Chrysler around to develop more fuel efficient vehicles as well as enhance the company's appeal to a younger segment?

Source: Bloomberg