Breaking news this morning...
DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history Monday as it agreed to sell its money-losing Chrysler unit for only a fraction of what it paid nine years ago.
DaimlerChrysler (Charts) announced it will sell an 80 percent stake in its U.S. brand for $7.4 billion to Cerberus Capital, a private equity investment firm. The private equity sector has become a major force in acquisition of publicly owned companies in recent years.
DaimlerChrysler sells majority stake of its struggling U.S. brand for $7.4 billion to Cerberus Capital, a New York-based private equity group. The German automaker then known as Daimler-Benz paid $37 billion for the U.S. automaker in 1998, but it soon found itself weighed down by uncompetitive labor costs and losing sales to nimbler Japanese rivals.
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pcnax25994 | Posted: 2007/5/29 18:06 Updated: 2007/5/29 18:06 |
Just popping in ![]() ![]() Joined: 2007/5/28 From: Posts: 1 |
![]() Good job gays
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Dak | Posted: 2007/5/24 11:15 Updated: 2007/5/24 11:15 |
Not too shy to talk ![]() ![]() Joined: 2005/9/6 From: Maryland Posts: 29 |
![]() With the 'Dogs of Hell' now guarding the gates at Chrysler does this mean Dodge WILL build the Demon ? >:^D
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myhotwheels22981 | Posted: 2007/5/16 0:47 Updated: 2007/5/16 0:47 |
Home away from home ![]() ![]() Joined: 2002/3/21 From: Posts: 183 |
![]() While Performance sells cars on Monday, Mileage keeps them running the rest of the week.
The (new) New Chrysler should employ these four steps across the board to make Chrysler stand out in the automotive world and make a bold statement... 1. All engines should be equipped with a mild hybrid system which will stop the engine when the brakes are applied, start the engine when the accelerator is pressed, and allow the car to 'jog' in battery-only mode in driving situations such as drive-thru's stop and go traffic, etc. 2. All 6, 8, and 10 cylinder engines should be equipped with the Multiple Displacement System (MDS) 3. Trucks and SUV's would be equipped with the Eaton Hybrid Hydraulic Transmission, and manual transmissions would be equipped with the simpler Hydraulic Launch Assist (HLA). 4. All gas engines would be equipped to burn straight gas or E85. |
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RUBICON | Posted: 2007/5/14 15:40 Updated: 2007/5/14 15:40 |
Home away from home ![]() ![]() Joined: 2005/7/13 From: Chandler, AZ Posts: 357 |
![]() One benefit, is that the company starts debt-free (will need to quickly resolve the healthcare and pension costs to avoid going back into debt). Another benefit is that the company will now be private... no longer at the whims of shareholders who are trying to make a quick buck instead of a long term investment.
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xjken99 | Posted: 2007/5/14 14:46 Updated: 2007/5/14 14:46 |
Quite a regular ![]() ![]() Joined: 2005/9/14 From: Posts: 58 |
![]() NA NA NA NA, HEY HEY HEY GOODBYE !
Never was a fan of the MB/Chrysler setup. I think the products and quality are better than before the buyout but, overall with the exception of the Hemi, RWD, 300 and the new Wrangler there have been more misses than hits. Hopefully this is a great new beginning for Chrysler and all three brands survive and florish. I would like to see some of the old Chrysler (like Bernhart) guys come back and put some American pride back into the company. Even if this doesn't workout and Chrysler ends up dying it dies an American company and not a German one. |
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jason | Posted: 2007/5/14 9:46 Updated: 2007/5/14 10:19 |
Just can't stay away ![]() ![]() Joined: 2005/6/30 From: glendale,az Posts: 91 |
![]() This is the news I was hoping for! Wolfgang Benhard left DCX 2 years by the hands of lasorda which now will most likely be fired for losing the 1.4 b last year. As some may know Benard left VW in january to run Cerberus Capital Management LP which is very positive for the chrysler group. As for Jeeps maybe we can actually have a CRD wrangler now and maybe even a gladiator! Who knows..the future for chrysler is bright.
PS. Should be interesting what happens with GMAC and CFC (chrysler financial)??? Jason |
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davert | Posted: 2007/5/14 9:41 Updated: 2007/5/14 9:41 |
Just popping in ![]() ![]() Joined: 2007/5/14 From: Posts: 15 |
![]() Daimler technically never paid for Chrysler; it was supposedly a merger. All they did was swap some stock around, and they also never mention that $8-10 billion cash reserve, the huge profits they reaped the first two years, or the continuing huge profits from Chrysler Credit! Heaven forbid any reporters should actually do some investigation!
By the way, a bigger description of the players and the deal is at http://www.allpar.com/weblogs/ and at http://www.allpar.com/news/ |
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RUBICON | Posted: 2007/5/14 8:22 Updated: 2007/5/14 8:22 |
Home away from home ![]() ![]() Joined: 2005/7/13 From: Chandler, AZ Posts: 357 |
![]() I had kind of hoped that Magna would have been the winner of the deal. However, I would rather see it go debt-free to a private investment firm than go off to another automaker (ie. GM and dismantled).
The 20% still owned by Chrysler means that CH will have access to the MB technology and platforms. |
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erik | Posted: 2007/5/14 6:57 Updated: 2007/5/14 6:57 |
Not too shy to talk ![]() ![]() Joined: 2005/12/28 From: Williamsport, PA Posts: 37 |
![]() Chrysler now has the best chance to emerge as an independent entity in the future.
Daimler is off their back, sucking the profits and stifling the innovation we all know Chrysler created in years past. Cerberus is a good organization (don't start about politics because the biggest donors to the Democratic Party currently are the oil companies) |
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dyg | Posted: 2007/5/14 6:29 Updated: 2007/5/14 6:30 |
Just popping in ![]() ![]() Joined: 2006/4/28 From: Metro Atlanta, GA, USA Posts: 10 |
![]() Jeep stayed with Chrysler.
I hope that this means: - that Chrysler/Dodge/Jeep will be able to further improve products. - that Chrysler/Dodge/Jeep will be able to extend/expand fleet sales for certain vehicles. - that the continued 19.9% holding by Daimler AG will mean continued access to Daimler technology, engines, and hardware. - that we will see an expansion (slight, not huge) of the product lines within Chrysler, perhaps including the reincarnation of the Plymouth brand as a mid-range car group or the Eagle brand as a low-range car group (for budget and fleet sales). - that we will see the Chrysler group rapidly adopt hybrid drivetrains with several ICE choices; preferably Plug-in Hybrid Electric Vehicles, PHEVs) with optional diesel engines. - that we will see a few more Jeeps in the Jeep tradition (and fewer in the "I wish I really were a Jeep" Compass style). This includes moving into pickups and away from crossovers. - that we will see the expansion and revision of the Dodge full-size trucks (and some derivative Jeep full size trucks). - that, due to the continuing partial ownership, the Sprinter will still be part of the US Dodge lineup. |
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