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Chrysler Group to Be Sold to Cerberus »

Posted by: MyWayOnNow 2 years, 7 months ago

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DaimlerChrysler AG said Monday it will sell more than 80 percent of its money-losing Chrysler Group to private equity firm Cerberus Capital Management LP, unwinding its nearly decade-old deal to merge the U.S. brand with Mercedes-Benz.

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Comments: 19

Avg rating: (+15/-3 12)
Macondo
May 14, 2007, 11:44 a.m.
Cerberus is essentially an investment company, not an automotive builder.
I wonder why the performance of Chrysler has been poor, while Daimler was profitable.
Is it related to the quality of their products or is it poor management?
What will be the next move of Cerberus if the deal is completed ? (Dismember Chrysler, reduce the number of car models and styles, fire a large number of employees or all of the above?)
Avg rating: (+11/-4 7)
joeblowe
May 14, 2007, 12:13 p.m.
I always wondered about the odd combination of Daimler/Mercedes - who makes expensive cars - with Chrysler - who makes "crappy" cars. I think that some years ago Daimler was the subject of a VERY good sales pitch. Perhaps "victim" is a better word than subject. They have some interesting vehicles - and I see a LOT of HEMI powered cars on the road lately, as well as Intrepids everywhere I go, but for some reason they just CANNOT capture much market. Personally, I think that if they would put a good bit more quality into their interiors it would help. Guess we'll see what happens next over the next year or two. Watch, some dumbas* will kill production of the HEMI - which is the ONE advantage they have over the competition - whining about how it's a gas hog. (Actually, EPA estimates indicate that the current HEMI is MUCH more economical on gas than the one they were selling in the 60's. Friend of mine had one and it got about 7-8 MPG)
Avg rating: (+2/-0 2)
KSUmarksman
May 14, 2007, 3:10 p.m.
Chrysler has officially gone to the dogs :)
Avg rating: (+1/-0 1)
jaern
May 14, 2007, 6:28 p.m.
I wonder if Chrysler will go the way of AMC.
Avg rating: (+4/-0 4)
0gramstransfat
May 14, 2007, 8:34 p.m.
This isn't surprising. After Lee Iaccoca, Chrysler went down the tubes. The cars the company produces are ugly gas hogs. Yeah, a 300 horsepower HEMI might be big and bad, but is it really necessary to have 300 horsepower to drive around town or on overly congested highways? And that goes for any car company and cars they produce.
Avg rating: (+5/-6 -1)
pattif
May 14, 2007, 9:41 p.m.
Had a Lebaron convertible, loved it, not as expensive as most but looked good! Can't make any comments about the rest, but it was a great car!
Avg rating: (+4/-0 4)
MikeReardon
May 14, 2007, 9:57 p.m.
The buyout idea is to stand it up and sell in back into the public market. Fix it and resell it again as a public company. Getting something to sell to make money is all that counts. They may end as dealers for Chinese or Indian imports. Or the biggest makers of mini motor mini cars like they have in Japan. The may make taxi's for local.. anything that makes money to resell the property.
Avg rating: (+5/-0 5)
infinite
May 14, 2007, 11:21 p.m.
Cerberus can perhaps improve Chrysler with Flint-stone cars.
Solves the gas, ethanol or other combustion fuels. ;-)
Avg rating: (+10/-4 6)
Macondo
May 15, 2007, 12:17 a.m.

It is clear this is a form of divorce.
As in any run of the mill divorce will anyone pay alimony ?
Who is abandoning the home and who will get custody of the children?
Avg rating: (+2/-0 2)
EsaEngr
May 15, 2007, 7:55 a.m.
I worked for Daimler-Benz for more than 20 years. I was there when Chrysler was bought. They did it then as a part of the new ISO9000 standards. I just saw on the news that Chrysler is paying over $1300.00 per car sold for Med. & retirement costs for old employees, and Toyota only pays $100.00!
The 2 companies never really melted together and it was only a matter of time until this happened. I hope the new owners can save Chrysler. It will take alot to do that, including the Union giving ALOT, and cutting jobs at all levels.
agree with everyone else, the current line of vehicles offered is best described as ugly. Hope they can change that