Posted on 04/05/2007 12:42:59 PM PDT by kellynla
DETROIT —
Billionaire investor Kirk Kerkorian's Tracinda Corp. on Thursday made a $4.5 billion cash offer for DaimlerChrysler AG's (DCX) troubled U.S.-based Chrysler unit.
Tracinda in a statement said it wants "to build and strengthen" the troubled automaker and "will offer the UAW and Chrysler management the opportunity to participate as equity partners in the transaction."
DaimlerChrysler has been exploring the possibility of selling the Chrysler division.
Han Tjan, head of corporate communications for DaimlerChrysler in New York, said the German-American automaker is talking with possible partners about a sale and that the chairman is satisfied with the process.
"All of our options are still open. For us to talk about (Tracinda) is speculation," Tjan said.
California-based Tracinda said its offer is subject to Chrysler reaching a new collective bargaining agreement with the United Auto Workers as well as a deal with DaimlerChrysler on sharing the unfunded pension liabilities and health care costs of Chrysler retirees.
DaimlerChrysler shares climbed $2.36, or 2.9 percent, to $83.35 on the New York Stock Exchange after the announcement.
Kerkorian long has had interest in automotive companies.
Late last year he dumped the last block of what once was a nearly 10 percent share of General Motors Corp., the world's largest automaker, after GM (GM) shelved the idea he had pushed of an alliance with France's Renault SA and Japan's Nissan Motor Co.
Kerkorian's wholly owned Tracinda was Chrysler Corp.'s largest shareholder at the time of its 1998 merger with DaimlerBenz AG. Kerkorian sued the combined company in 2000, claiming that DaimlerBenz engineered a takeover of Chrysler, then cheated him out of billions by casting the deal as a merger of equals. A federal judge rejected his claim.
(Excerpt) Read more at foxnews.com ...
I just bought a 2005 Crossfire SRT-6 with 2500 miles on it and love it. It was made in the Karmann Plant in Germany has a MB SLK 32 AMG drive train surrounded by Chrylser sheet metal. I am looking forward to seeing the new Challenger and hope it has the 6.4L, 500hp motor to compete with the Shelby GT500 and Camaro SS.
The Nitro has had some severe transmission problems.
The “Mini Van” was a major reason to revive Chrysler in the early 80’s.
4.5 is the offer, not the sale price. LOL
Good point :)
Yep, 1st gen SLK platform. Again, nothing wrong with that, at all.
My son and I went to a Chrysler dealer in the Summer of 2003, when those were brand new, just to look at one. It was a surreal experience. It was like space aliens had plopped this vehicle into the middle of the dealership. They had no idea whatsoever what they had, and selling it to those used to a German car dealership experience was going to be, well, impossible is probably the best term.
We provided the sales team a useful product training experience as we went through the vehicle.
I actually rather hope they do - because the US can no longer afford the UAW. And with the UAW gone, the Dems lose much of their financial support.
“”....if Chrysler dumps the union, they will strike all of the automotive industry!””
And that is a lose how? All the U.S. car makers could declare themselves bankrupt tomorrow with a phone call.
Then the unions would be NOTHING and have nothing.
Now the companies can operate profitably.
4.5 billion? I’ve got more than that under my floor mat.
But, it’s cash though. Which is just as good has money!
They still have SEIU and with about 10-20 million illegals to enroll, the DNC will still be well funded!
As an AMC fan, this paint scheme is AWESOME!
Every car breaks...most of the Hondas I see with 250,000 miles on the have had major work done to them at quite an expense...but they’ll drop 2500 or more on the Honda because of the resasle value which is based on them lasting so long....people would junk many other makes because the resale isn’t worth it...irony is that the Hondas resale value is based on the assumption that they are trouble free...not so...I’ve overhauled a dozen Honda motors in the lasst 2 years...heres a secret...if you want a really trouble free car, buy a buick, all I’ve ever done to Buicks are brake jobs and alternators..
And how many American made cars have you seen make it to 250,000 with the original engine, major work or not?
Yes, but it's really closer to 4 billion after the rebate, as long as he acts before the end of the month...
people don’t do the major work so they don’t make it. My 1970 F100 will pull another truck coast to coast, but I rebuilt it like I’ve done to lots of Hondas.
Chrysler $4.5 billion
YouTube $1.6 billion
interesting world
Or he could be making a play to break it up. Billions in physical plant and assets maybe?
Break it up, sell to another internal division and force rehires?
Then rehire everyone without the UAW?
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