Chrysler on Verge of Sale to a Private Firm!

rangaraj · 14th May 2007, 14:21

Chrysler on Verge of Sale to a Private Firm

By MICHELINE MAYNARD and MARK LANDLER
Published: May 14, 2007
FRANKFURT, May 13 — DaimlerChrysler appears close to selling the struggling Chrysler Group to a private equity firm that specializes in restructuring troubled companies, unwinding a 1998 merger that was meant to create a trans-Atlantic automotive powerhouse, people with direct knowledge of the discussions said on Sunday.

Read the rest:
http://www.nytimes.com/2007/05/14/au...th&oref=slogin

theMAG · 14th May 2007, 14:29

Well, it was never a "merger between equals" as claimed anyway. Another erstwhile mighty American tree is felled.

pawan · 14th May 2007, 16:15

woo this is interesting news a American icon might be lost.

GTO · 14th May 2007, 16:45

Just as expected! Has predicted this a while back : Linky

ajmat · 14th May 2007, 17:11

Sold to Cerebus - 80% stake for $7.4 billion

merve_extreme · 14th May 2007, 17:12

Diamler AG has sold 80.1% of Chrysler for 5.5b Euro(7.4bn $) to American private-equity company Cerberus.The rest 19.9% will be held by Diamler AG.

the significant thing is that Healtcare liabilities of $19bn (£9.6bn) will be taken care of by Cerberus.

rangaraj · 14th May 2007, 18:24

Quote:

Originally Posted by pawan

woo this is interesting news a American icon might be lost.

DaimlerChrysler - Brands & Products - Overview - Our brand Web sites

Mercedes Group
> Maybach, Mercedes, Smart

Chrysler Group
> Dodge, Chrysler, Jeep

DaimlerChrysler Truck Group
> Mercedes, Freightliner, Mitubishi Fuso etc..

Besides some in the component markets and financial services..

(*) Includes Truck Group, Van operations, Bus operations

Components

Financial Services

pawan · 14th May 2007, 18:52

i just wish it doesnt have the same fate as amc.

Chrysler Group
> Dodge, Chrysler, Jeep

its highly unlikely these cars are going to end.especially dodge.

ported_head · 14th May 2007, 18:53

It bled DC quite a bit I guess, considering it was bought for $ 36 billion in 1998. That's not going to look good in the books.

rangaraj · 14th May 2007, 19:54

Sorry about the previous post.. Daimler Chrysler actually sold its american arm (which it acquired earlier) - namely chrysler.. Now i guess, they will call themselves Daimler again..

whatcanthisbe · 14th May 2007, 20:12

Cerberus likely buyer of Chrysler - Yahoo! News

Quote:

Private equity firm Cerberus Capital Management LP likely will be the winning bidder to buy Chrysler Group from DaimlerChrysler AG, and an announcement could come as early as Monday, a company official said Sunday.
.
.
.
Daimler-Benz AG paid $36 billion for Chrysler in 1998.

Note from the Support Staff: Providing a link to the article will suffice. Avoid copy-pasting from websites.

lurker · 17th May 2007, 09:02

Will Chrysler’s next suitor be from India?

Will Chrysler?s next suitor be from India? - livemint

Rather, Cerberus is looking to capitalize on its investment in a money-losing business by slashing costs, wringing additional concessions from auto workers and generally sprucing up the balance sheet for whoever buys the company next.

....

Korth’s guess is that Chrysler will continue focusing on what Detroit does so well—selling larger-sized vehicles that Americans crave—and will leave the cutting-edge stuff to the Japanese. And after Cerberus cleans house, she believes the most likely buyer will be another overseas company. “It could be someone from Asia this time,” Korth said. “Maybe someone from India.”

GTO · 17th May 2007, 14:00

A shot in the dark : But dont you think it will be cool for Mahindra to pick up "Jeep"?

lurker · 18th May 2007, 20:56

Market rumor has it that Tata is going to pick it up. Because advisors to Tata and Cerberus Holdings is the same Nathaniel Rothschild.

Ofcourse Mahindra might need Chrysler more.

On news of Chrysler acquisition by Cerberus Tata share price NYSE jumped to 25$

Mayavi · 19th May 2007, 00:45

TATA should pick-up Chrysler if they want to go bankrupt

There is nothing that TATA can learn from Chrysler. TATA wants to be a small car manufacturer where as chrysler doesn't have a single small car in its stable. Tata has an alliance with FIAT which is benefitting both companies and it should remain that way for another 5 years till TATA has a good product line.
Mahindra on the other hand would be an ideal suitor if they can pickup Dodge and Jeep brands and seperating them from Chrysler. Mahinda has ambitions in US and Jeep, Dodge have what it takes to make its dreams a reality.

14th May 2007, 14:21	#1
rangaraj BHPian Join Date: Sep 2005 Location: Bangalore Posts: 570 Thanked: 10 Times	Chrysler on Verge of Sale to a Private Firm! Chrysler on Verge of Sale to a Private Firm By MICHELINE MAYNARD and MARK LANDLER Published: May 14, 2007 FRANKFURT, May 13 — DaimlerChrysler appears close to selling the struggling Chrysler Group to a private equity firm that specializes in restructuring troubled companies, unwinding a 1998 merger that was meant to create a trans-Atlantic automotive powerhouse, people with direct knowledge of the discussions said on Sunday. Read the rest: http://www.nytimes.com/2007/05/14/au...th&oref=slogin
	() Thanks

14th May 2007, 14:29	#2
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	Well, it was never a "merger between equals" as claimed anyway. Another erstwhile mighty American tree is felled.
	() Thanks

14th May 2007, 16:15	#3
pawan BHPian Join Date: Sep 2006 Location: auckland, new zealand Posts: 868 Thanked: 4 Times	woo this is interesting news a American icon might be lost.
	() Thanks

14th May 2007, 16:45	#4
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,767 Times View My Garage	Just as expected! Has predicted this a while back : Linky
	() Thanks

14th May 2007, 17:11	#5
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,865 Thanked: 27,980 Times View My Garage	Sold to Cerebus - 80% stake for $7.4 billion
	() Thanks

14th May 2007, 17:12	#6
merve_extreme Senior - BHPian Join Date: Apr 2004 Location: Mumbai Posts: 1,359 Thanked: 18 Times View My Garage	Diamler AG has sold 80.1% of Chrysler for 5.5b Euro(7.4bn $) to American private-equity company Cerberus.The rest 19.9% will be held by Diamler AG. the significant thing is that Healtcare liabilities of $19bn (£9.6bn) will be taken care of by Cerberus. Last edited by merve_extreme : 14th May 2007 at 17:15.
	() Thanks

14th May 2007, 18:52	#8
pawan BHPian Join Date: Sep 2006 Location: auckland, new zealand Posts: 868 Thanked: 4 Times	i just wish it doesnt have the same fate as amc. Chrysler Group > Dodge, Chrysler, Jeep its highly unlikely these cars are going to end.especially dodge. Last edited by pawan : 14th May 2007 at 18:54.
	() Thanks

14th May 2007, 18:53	#9
ported_head Senior - BHPian Join Date: Mar 2004 Location: Mumbai, India Posts: 2,387 Thanked: 20 Times	It bled DC quite a bit I guess, considering it was bought for $ 36 billion in 1998. That's not going to look good in the books.
	() Thanks

14th May 2007, 19:54	#10
rangaraj BHPian Join Date: Sep 2005 Location: Bangalore Posts: 570 Thanked: 10 Times	Sorry about the previous post.. Daimler Chrysler actually sold its american arm (which it acquired earlier) - namely chrysler.. Now i guess, they will call themselves Daimler again..
	() Thanks

17th May 2007, 09:02	#12
lurker Senior - BHPian Join Date: Jun 2006 Location: Tura Posts: 1,592 Thanked: 1,423 Times	Will Chrysler’s next suitor be from India? Will Chrysler?s next suitor be from India? - livemint Rather, Cerberus is looking to capitalize on its investment in a money-losing business by slashing costs, wringing additional concessions from auto workers and generally sprucing up the balance sheet for whoever buys the company next. .... Korth’s guess is that Chrysler will continue focusing on what Detroit does so well—selling larger-sized vehicles that Americans crave—and will leave the cutting-edge stuff to the Japanese. And after Cerberus cleans house, she believes the most likely buyer will be another overseas company. “It could be someone from Asia this time,” Korth said. “Maybe someone from India.”
	() Thanks

17th May 2007, 14:00	#13
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,767 Times View My Garage	A shot in the dark : But dont you think it will be cool for Mahindra to pick up "Jeep"?
	() Thanks

18th May 2007, 20:56	#14
lurker Senior - BHPian Join Date: Jun 2006 Location: Tura Posts: 1,592 Thanked: 1,423 Times	Market rumor has it that Tata is going to pick it up. Because advisors to Tata and Cerberus Holdings is the same Nathaniel Rothschild. Ofcourse Mahindra might need Chrysler more. On news of Chrysler acquisition by Cerberus Tata share price NYSE jumped to 25$ Last edited by lurker : 18th May 2007 at 20:57.
	() Thanks

19th May 2007, 00:45	#15
Mayavi BHPian Join Date: Apr 2007 Location: Scottsdale Posts: 682 Thanked: 9 Times View My Garage	TATA should pick-up Chrysler if they want to go bankrupt There is nothing that TATA can learn from Chrysler. TATA wants to be a small car manufacturer where as chrysler doesn't have a single small car in its stable. Tata has an alliance with FIAT which is benefitting both companies and it should remain that way for another 5 years till TATA has a good product line. Mahindra on the other hand would be an ideal suitor if they can pickup Dodge and Jeep brands and seperating them from Chrysler. Mahinda has ambitions in US and Jeep, Dodge have what it takes to make its dreams a reality.
	() Thanks