Posted on 05/14/2007 11:22:44 AM PDT by MinorityRepublican
NEW YORK (CNNMoney.com) -- DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history Monday as it agreed to essentially pay to dump the money-losing Chrysler unit which it paid $37 billion for nine years ago.
DaimlerChrysler (Charts) announced it will sell an 80 percent stake in its U.S. brand to Cerberus Capital Management, a private equity investment firm that will pay $7.4 billion.
But the German automaker, which will be renamed simply Daimler, will not actually get most of the money that Cerberus is paying for the once proud automaker. Instead Cerberus will contribute $5 billion to the Chrysler auto operations it will now control, with just over another $1 billion going to Chrysler's finance arm.
While Daimler will receive the remaining $1.4 billion of Cerberus' capital contribution to the sale, Daimler expects to have to cover another $1.6 billion in Chrysler losses before the deal closes. So Daimler estimates that it will end up paying out about $650 million to close the deal, and that its earnings for 2007 will take a $4 billion to $5.4 billion profit hit due to charges related to the transaction.
(Excerpt) Read more at money.cnn.com ...
I now own my second Town and Country LS and can’t seem me driving any other vehilce again. And at age 61 I have owned many vehicles. It is by far the best all around vehicle I have ever driven/owned.
I had a ‘98 Town & country van. we just loved it except that the transmission locked up twice.
AHHHH, the Chrysler Cor-DO-ba! With FINE CORINTHIAN LEATHER!.......
I thought FORD bought Jag..........
I liiiike what they’ve done do my cah!
Plan to rehab the auto industry, starting with Chrysler.
1) Close every factory for 6 months.
2) Reopen every factory and start hiring cycle.
3) Refuse to hire any Goonion members.
4) Pay the workers what they were getting + half of their goonion contribution.
Chrysler will be fine. Just escaped a bad marriage is all.
The Corvair was a good car???? Good grief, Charlie Brown. That POS wouldn't even stay in the road at over 40 MPH.
Exactly what Koch did when they bought Georgia Pacific.
A limited production sports car, bread box styled minivan with transmissions that self destructed and a QC plagued series of SUV's? If those are their good cars they deserve to be out of business.
Yeah, but all Chrysler got to keep was the car!.........No House, No kids, no alimony!..........
Good gawd, what a bath Daimler is taking. Those Buchananites decrying ‘foreign takeovers’ of American assets would do well to remember this, as if Sony’s debacle with the Rockefeller Center wasn’t enough.
You are correct.
” Never has much been lost by so few in so short a time...’
It makes the airline industry, which as a whole never made a profit in its existence, seem promising.
The ‘98 and previous year had terrible transmission problems. Especially the AWD versions.
“As I sadly found out the hard way. Transmission, to be specific.”
My in laws have had a number of Mercede’s over the years including the newest E-Class. They have replaced the transmission in it 3 times now. Once the lease is up they have vowed never to own another and will look at a Lexus (the new LS 460 is beautiful).
Richardo Montalban, as Khan, in Star Trek II: The Wrath of Khan: "You do not have the luxury of trying."
They do....
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