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Daimler pays to dump Chrysler
CNN ^ | Monday, May 14, 2007 | Chris Isidore

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 ...


TOPICS: Business/Economy; Germany
KEYWORDS: automakers; chrysler; daimler
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To: Past Your Eyes

Since when was Corvair made by Chrysler? I thought is was
a general motors product. I hae a 2006 dodge ram 2500, and I simply love it. I owned ford f100 which turned to be a pos, a toyota truck, a 1984 chevrolet which I still have, this dodge got them all beat in many ways

Bullfrog


61 posted on 05/14/2007 12:28:56 PM PDT by Bullfrogg (American by Birth, Irish by heritage, hell raiser by choice)
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To: Armedanddangerous

Rented a Charger for a trip; loved the car and it it FLIES! I think we did 80 mph most of the way - and it felt slow.

Also rented a 300. I like the external “German Staff Car” looks, but the inside was not a comfortable as the Charger. If I was going to spend that much on a car, I’d get a Charger.

But we got the PT Cruiser instead and love it.


62 posted on 05/14/2007 12:31:41 PM PDT by Little Ray (Rudy Guiliani: if his wives can't trust him, why should we?)
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To: Past Your Eyes
That POS wouldn't even stay in the road at over 40 MPH.

Only because of the POS trial lawyer driving it. Old man Prorche thought it to be the only American car to ever handle decently.

63 posted on 05/14/2007 12:33:57 PM PDT by Dead Dog
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To: Little Ray
Their cars are only part of Chrysler's problem, their service is another.

I've visited every service department in San Diego County and they're all the same; the suck.

64 posted on 05/14/2007 12:35:59 PM PDT by South40 (Amnesty for ILLEGALS Is A Slap In The Face To The USBP!!)
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To: South40

That’s right—I love my 2005 Magnum! It sits on the same platform as the 300. It hauls ass for a big wagon. Yes it has a hemi...I had a 1985 3/4 ton Dodge van too with a 318 v-8. That thing was a great car. Very reliable 130,000 plus miles. Sometimes I wish I still had it. The Magnum has been fun too. I’ve read about the 5-speed transmission having problems but mine has been (knock on wood) real nice. The hemi gets 20-25 mpg (if you drive conservatively) on the hiway and has 300 hp- and looks bitchin too. Their older go fast stuff is super cool also. People love to bash....anything...just bash...negative society I guess.


65 posted on 05/14/2007 12:38:35 PM PDT by 69er (69er)
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To: MinorityRepublican

IIRC, they got their money when they raided Chrysler’s cash reserves (something like 5 billion).


66 posted on 05/14/2007 12:44:13 PM PDT by Centurion2000 (Killing all of your enemies without mercy is the only sure way of sleeping soundly at night.)
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To: 69er
I had a 1999 300M. It was a great car for a few years then started having problems which led to my problems with Chrysler's service department(s). I've visited every one in the county and they ALL suck. Those people were the most corrupt people I've ever done business with and that was consistent from dealer to dealer.

I still own a 2002 Jeep Wrangler; it only has 20,000 miles but it's impossible to find a dealer who will service it honestly so it sits in my garage and goes undriven.

I'll never buy another Chrysler product again.

67 posted on 05/14/2007 12:45:26 PM PDT by South40 (Amnesty for ILLEGALS Is A Slap In The Face To The USBP!!)
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To: gridlock

not true.

Chrysler and Mitsubishi mad an identical automobile (the talon I believe)

Identical except for the nameplate and logos. All else was the same, engine, seats, shape, tooling.

However the Mitsubishi outsold it 70/30.

chrysler had and has a perception problem.

Sad considering some of the inovations came from them lately. Prowler, pt cruiser, ....ok thats it.


68 posted on 05/14/2007 12:53:01 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Red Badger
I thought FORD bought Jag.......... You are correct, my bad!

(either way, no more Lucas electrics!)

69 posted on 05/14/2007 12:58:22 PM PDT by KenHorse
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To: sittnick

Chysler has managed to mess up the Caravan, which used to be a pretty nice car. We just got one at work with the Stow and Go seating. Unfortunately, to make that work they had to raise the floor about six inches and stick the spare tire under the driver’s seat. Now you can’t fit under the roofline.

I have to drive this thing on a daily basis, and I can’t get into or out of the thing. Once I am inside, I can’t see out the front unless I recline the seat, but if I recline the seat, my head hits the bump caused by the driver’s side sliding door mechanism. The only way I can drive this thing is with the seat reclined and leaning on the right armrest to clear the bump.

If the car wasn’t free, I would give it back. Even so, I am having second thoughts. I wonder if those front airbags would protect me in the event of an “unplanned” collision into a telephone pole...

The previous generation Pymouth Voyager was a great vehicle. I would take the old one back in a heartbeat.


70 posted on 05/14/2007 1:04:42 PM PDT by gridlock (On January 20, 2009, Fred Dalton Thompson will be sworn in as President of the United States.)
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To: gridlock

I have a ‘99 Ram diesel and an ‘02 Intrepid. Both excellent vehicles.


71 posted on 05/14/2007 1:04:59 PM PDT by bruin66 (Time: Nature's way of keeping everything from happening at once.)
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To: gridlock
If the car wasn’t free, I would give it back. Even so, I am having second thoughts. I wonder if those front airbags would protect me in the event of an “unplanned” collision into a telephone pole...

Careful. I understand you can receive brain damage from air bags.

(don't want to become a Lib do ya? )

72 posted on 05/14/2007 1:09:20 PM PDT by KenHorse
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To: Red Badger
Will we still get the rednecks in the beat up Duster?..........

Better question: Will we still get the new Challenger?

73 posted on 05/14/2007 1:10:48 PM PDT by Charles Martel (Liberals are the crab grass in the lawn of life.)
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To: MinorityRepublican
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.

How did this reporter even got this job?

When you buy a house in February and agree to close on it in June, the current owner (seller) pays for all expenses occurred up unit the closing. The same has happened here: because losses will have occurred prior to "closing," they are covered by Deimler. That's all.

Another example of falsifying information to create a non-story.

74 posted on 05/14/2007 1:11:46 PM PDT by TopQuark
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To: Billthedrill

I have never heard of Corinthian leather until Chrysler advertised it. And today I never hear of Corinthian Leather. Strange?


75 posted on 05/14/2007 1:13:05 PM PDT by Orange1998
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To: Armedanddangerous
The Charger I drove recently was a nice car, and man...you wanna talk about FAST? Whew...

A friend of mine who works for Parents Magazine, of all things, got a four door Charger with all the go fast goodies as a tester for a month. We took it out to the Parkway on-ramp and stood on the gas, just for fun...

Ohmygawdohmygawdohmygawd was that thing quick! Zero-to-Ditch in about 3.2 seconds!

76 posted on 05/14/2007 1:16:39 PM PDT by gridlock (On January 20, 2009, Fred Dalton Thompson will be sworn in as President of the United States.)
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To: Orange1998
I have never heard of Corinthian leather until Chrysler advertised it. And today I never hear of Corinthian Leather. Strange?

They probably ran out of Corinthians. Not much skin on 'em you know....

77 posted on 05/14/2007 1:18:05 PM PDT by KenHorse
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To: Red Badger
AHHHH, the Chrysler Cor-DO-ba! With FINE CORINTHIAN LEATHER!.......

That's not a Mercedes! That's my Fowd Granawda!

78 posted on 05/14/2007 1:19:02 PM PDT by gridlock (On January 20, 2009, Fred Dalton Thompson will be sworn in as President of the United States.)
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To: Orange1998
I have never heard of Corinthian leather until Chrysler advertised it. And today I never hear of Corinthian Leather. Strange?

The "Corinthian leather" nonsense was an outright marketing department fabrication. Now, *Connolly* leather - that's the real deal.

79 posted on 05/14/2007 1:36:00 PM PDT by Charles Martel (Liberals are the crab grass in the lawn of life.)
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To: Red Badger
Will we still get the rednecks in the beat up Duster?..........

SCHWWWWWWEEEEEEEET!

80 posted on 05/14/2007 1:47:04 PM PDT by gogeo (Democrats want to support the troops without actually being helpful to them.)
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