Chrysler Sold to Cerberus
May 14, 2007

DaimlerChrysler announced this morning that it had sold its Chrysler Group to the private equity firm, Cerberus Capital Management, for $7.4 billion.

The $7.4 billion buys Cerberus 80.1 percent equity interest in the new  Chrysler. DaimlerChrysler retains 19.9 percent equity interest in the new company.

The new Chrysler includes all of the Chrysler Group, with its Chrysler, Dodge and Jeep divisions, in addition to Chrysler Financial Services.

The new Chrysler will be responsible for all pension and health care costs of the Chrysler company.

Existing projects with Mercedes-Benz continue, including the development of conventional and alternative powertrains, purchasing and sales and financial services outside the NAFTA region.

Beyond the nuts and bolts of the deal, questions are numerous; some will only be answered in time.

Posted by Michelle Krebs at 4:45 AM under Chrysler , Featured , News | Comments (0) | digg this | Seed Newsvine