Daimler may sell remaining Chrysler stake to Cerberus
Both Cerberus and Daimler have announced plans for the German automaker to sell the remaining 19.9-percent stake in Chrysler to the private equity firm. According to reports coming out of Germany, that relatively small stake in the American automaker is still weighing down Daimler's stock price. Perhaps the Germans aren't so sure that Chrysler's new electric vehicles will ever see the light of day? In any case, both sides suggest that all the rest of the two company's relationships would continue, so technology sharing and diesel engines could still be made available to Chrysler from its former German parents.
Note that the first 80-percent of Chrysler was sold to Cerberus for $7.4 billion. We wonder what the other 20-percent is worth.
[Source: Detroit Free Press]
Reader Comments (Page 1 of 1)
ronzo 4:35PM (9/24/2008)
IOW: Chrysler = boat anchor
Reply
ehisforadam 4:58PM (9/24/2008)
Yes, because Daimler already stripped them of all the money they had to pay off pensions. Of course, Mercedes-Benz was the same thing for a while, but they'd never sell that off.
Flashpoint 9:42PM (9/24/2008)
Chrysler's problem is, they don't seem to have anything on the drawing board.
The 300 is dead. They have no flagship anymore.
I'm not sure where they can go from here.
Autoblow 10:28PM (9/24/2008)
Come on. I let you know this only seconds after an insider at Daimler AG tipped us off here. You guys are ridiculous. Credit where it's due? Never.
On a more important note. Daimler AG sucked the life out of a dying brand is the general feel around here from most the bloggers aditionally, they threw away 10 billion dollars to spite you, the consumer.
Get a clue.
Purifoy 4:48PM (9/24/2008)
This comes as little surprise. I always figured Daimler would eventually give up it's 20 percent to Chrysler. But I suspected it would have been more of a gradual weaning, perhaps 10 percent now and the other 10 percent later.
In either case, Detroit will reclaim the title of being the home of the Big Three instead of the Big 2.80.
Reply
Chris 4:50PM (9/24/2008)
well, if 7.4 divided by 4 == 1.85, then you would expect 1.85 billion.. but since Chrysler has been shining like the bright north start, they'll probably buy it for, 300 dollars.
Reply
BigWill 6:15PM (9/24/2008)
$300 is still more than Daimler would get if Chrysler goes belly up.
compy386 5:50PM (9/24/2008)
At the point where it's "weighing down" your stock price. Wouldn't you just give it away?
Reply
RealityCheck 5:20PM (9/24/2008)
The only reason that Cheysler would want that stock is so they will not have to report ernings any more. I think that this will be the first negative stock repurchase and Chrysler will get one billion for the way that the Germans left the company!
I can't beleive that after seeing how poorly they designed cars that anyone would ever buy Daimler car again. Pure trash! The only cars that are any good are the ones that still remain from before or the new trucks that they didn't get a chance to ruin.
Reply
tim 5:59PM (9/24/2008)
Do correct me if I am wrong. I understood that the money paid by Cerberus went to Chrysler not Daimler. So Cerberus got 80.1 percent of their money back.
Reply
Sharone 7:30PM (9/24/2008)
If by sell you mean 'how much do I have to pay you to take this remaining share from me", yes.
Reply
whofan 7:34PM (9/24/2008)
Thank God!
I hope this goes through.
Diamler = leech.
Chrysler of 1998 was in position to do great things. I wish Bob Lutz was put in charge of Chrysler.
Reply
steelydan 10:54PM (9/24/2008)
you can have Wagner but not Lutz
Cary 10:32PM (9/24/2008)
Whofan = Typical idiot
Who leeched whom?
Daimler didn't make $1 off the $36 Billion they spent back. Hlow could they have "leeched" anything? They gave Chrysler and Dodge the technology for the LX and LE platforms. If you are even the least bit savvy regarding the goings on of DaimlerChrysler over the last 10 years, you'll notice the most porfitable thing to occur was the LX/LE platforms. Chrysler 300 anyone?
Like the other guy said up above, get a clue.
whofan 6:26AM (9/25/2008)
http://www.allpar.com/history/closed-plants.html
At least this idiot can read
Frank 8:57AM (9/25/2008)
Cary,
Daimler "merged" with Chrysler for two reasons: one they were afraid of being bought by someone else. Two they wanted Chrylser's cash hoard of 10 billion or so. To this day no one knows what happened to this money. This is not the only company that Daimler has done this to. The whole thing was done under false pretenses. As for the LX, Chrysler already had it in development, but Daimler insisted they adapt the old E-class architecture instead. And then Daimler charged them royalties for the parts and consulting fees. Tom Gale said that pushed the program back 1.5 to 2 years. The 300 could have been out in late 2003 or 2004, not 2005. I hope Cerberus buys the remainder and gets rid of "Count Daimlercula" for good.
Frank 9:29AM (9/25/2008)
Cary,
Daimler "merged" with Chrysler for two reasons: one they were afraid of being bought by someone else. Two they wanted Chrylser's cash hoard of 10 billion or so. To this day no one knows what happened to this money. This is not the only company that Daimler has done this to. The whole thing was done under false pretenses. As for the LX, Chrysler already had it in development, but Daimler insisted they adapt the old E-class architecture instead. And then Daimler charged them royalties for the parts and consulting fees. Tom Gale said that pushed the program back 1.5 to 2 years. The 300 could have been out in late 2003 or 2004, not 2005. I hope Cerberus buys the remainder and gets rid of "Count Daimlercula" for good.
AMcA 8:24PM (9/24/2008)
I bet they're going to pay 'em to take it off their hands.
Reply
mroverlord 1:30PM (9/25/2008)
Daimler put the brakes on cars like the ME-412 because it made the SLR McLaren look like a go kart. They are the ones that killed the Neon (which was profitable) and had NO plans to replace it....probably because they already knew they were going to put them on the market, so didn't want to waste THEIR money.
They also watered down Jeep with excessive models that were not serving a purpose.
Daimler sucked the life out of Chrysler....and they should burn, BURN for it.........
Reply
Mike 7:08PM (9/25/2008)
Here is the truth:
Message on Cerberus, Daimler discussions
Posted Wednesday, Sep 24, 2008 at 3:43 pm in Company News, Messages From Our Leaders
Ron Kolka, Executive Vice President and Chief Financial Officer, provided employees with this update on discussions between Cerberus Capital Management and Daimler AG.Dear Employees,
I wanted to share with you some positive financial news that indicates continuing strong support from our majority owners, Cerberus Capital Management.
In statements to the financial media today, Cerberus and Daimler AG confirmed that discussions are under way regarding the redemption of Daimler’s 19.9 percent stake in Chrysler LLC. The statement from Cerberus indicates that it was Cerberus that approached Daimler regarding this matter.
In the event of a successful transaction, Daimler would no longer hold an ownership position in Chrysler, but common projects between Daimler and Chrysler in the areas of research and development, and advanced technologies would continue.
As we have in the past, the leadership team wanted to provide this update as a way to keep you in the know about transactions that you can expect to read about in the financial press.
Sincerely,
Ron Kolka
Executive Vice President
and Chief Financial Officer
Reply