Who's the Boss? Daimler still wants to offload remaining stake in Chrysler
For over a decade, ownership of Chrysler has been bouncing back and forth over the Atlantic like an Airbus jet. Since its founding in 1925, it was independently owned and operated right out of Detroit, then Daimler bought controlling interest in 1998, only to sell it to U.S.-based Cerberus Capital Management. Now Fiat is poised to assume a 35% stake in the company. So the question is, who holds controlling interest? Well in short, nobody does. Daimler holds nearly 20%, Fiat's taking over 35%, leaving Cerberus with 45% – the lion's share, but short of controlling interest. But while the majority of Chrysler's shares may be back in Europe, Daimler isn't interested in holding onto its stake. Daimler and Cerberus had been talking about transferring ownership of the remaining 20% for a while already, but with America's financial institutions in shambles, who knows if the capital management company can even manage to find the capital to buy the rest of the company. In the meantime, it looks like Chrysler's at the whim of European automakers... yet again.
[Source: Reuters]
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Reader Comments (Page 1 of 1)
geo.stewart 8:21AM (1/21/2009)
oh, THIS bodes well.
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Talisman 8:50AM (1/21/2009)
Fiat should just buy it.
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Talisman 9:08AM (1/21/2009)
The Daimler stake I mean
Judy Zik 12:32PM (1/21/2009)
Fiat can't afford to buy anything. The stake they are getting in Chrysler is strictly based on sharing technology. No cash is exchanging hands and Fiat has made it clear that they do not intend to inject any cash into Chrysler (since they are massively in debt and don't have any that is hardly news). Financially this is the blind leading the blind. Cerbyleriat will still need the government help to keep the lights on at their North American factories until the economy improves. What this deal does is provide them with a possible buisness plan to present to governments for turning things around if the taxpayers keep them alive until then.
Justin 5:53PM (1/21/2009)
why would fiat buy cancer poised unionized company?
it's like saying you should you just give your money away to me.
MemphisNET 9:09AM (1/21/2009)
Nobody can bleed Chrysler like Mercedes did. There isn't even any money to steal this time. This appears to be the TRUE merger/partnership of equals.
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guillermo cesar 9:39AM (1/21/2009)
Great for Chrysler also. With this move they have access to many cheap turbo motors.
From 1.4 165 cv (with Multiair) to 1.8 230 cv (Mito GTA, Lancia Delta, New Alfa 149 ).
So if people complained about the lack of efficient engines and lower emissions of C02, here they are.
Chrysler also access to small/medium platforms all good and excellent in safety. Saves millions in development.
As for the profit for Fiat. They access to an extensive dealership network (which it must improve its quality), access to platforms Jeep (for Alfa Kamal), V6 engines which could be greatly improved by FIAT, and perhaps a platform for New Alfa 159 (today platform is very expensive to produce according to FIAT).
Great news!!!
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jv2k 10:49AM (1/21/2009)
"So if people complained about the lack of efficient engines and lower emissions of C02, here they are. "
Most people don't really worry about emissions in the us.
Swede 11:39AM (1/21/2009)
jv2k: It's time to start caring now.
Rick 10:52AM (1/21/2009)
The only one I want, because I know gas prices are going to skyrocket again in the near future, is the 1.9 liter JTD twin stage turbo. 190 hp and 300 ft-lbs. Passes Euro 5 regs, and has already been out for 2 years and proven itself. Place it in a nice family car, and I'll bite for my next vehicle.
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Sanders 10:57AM (1/21/2009)
@ jv2K
And I would guess with that statement, philosophically and politically, you belong to that certain slash and burn bunch that would be caught yelling 'drill baby, drill' on a street corner. Such a short sighted legacy you aim to promote.
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KyleHondaRocks 11:03AM (1/21/2009)
Where does thias leave Mitsubishi, who helps supply Chrysler with the midsized car and SUV platdform? Where does it leave Nissan, who is supposed to supply a small car for Chrysler and Chysler a truck to Nissan?
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P.V. 11:23AM (1/21/2009)
I don't care about the story, but that picture looks sweet!
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Jeff 12:34PM (1/21/2009)
This is wonderful news for Chrysler. We all know how well European ownership worked for them the last time.. / sarcasm off
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Datsun 510 1:42PM (1/21/2009)
Cerberus+bling! The auto industry is teetering on the brink. But humor is always good.
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Dane 2:01PM (1/21/2009)
Just give the shares to FIAT... The sooner that happens the sooner we get some hot lil Italians...
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gewweg4000 5:57PM (4/09/2009)
i believe chrysler should consolidate their dealerships, chrysler-jeep and dodge. many small town dealers have already done so. then they could eliminate the to many duplications. chrysler would be the more upscaled larger line, dodge more medium/compact line and jeep sport utility and off road. exp. you wouldn't need both aspen and durango(i would bring back the pacifica and rebadge it an aspen or durango) you wouldn't need both the compass and calabier. probaly the calabier. the commander could be made into a 4dr pick-up much like the hummer 4dr pick-up.the speciality cars would stay at dodge. jeep cheerokee would be the main suv. probaly eliminate the durago or badge it a chrdysler durango in the pacifica redigned body. eliminate the chrysler sebring in favor of the dodge adventure. if going with fiat, either the fiat sedan or alfa romero sedan could replace present bodys. they are beautiful cars. the mini compacts would be dodge and jeep in the fiat line. the chrysler 300 has a a diesel available in europe, why not the 300 and all chrysler, dodge and jeep have a diesel option. don't make the mistake you did with the liberty diesel 23mpg wasn't acceptable. you should keep the liberty in lieu of the dodge version. although tdhe dodge version is the best looking of the two. just change nameplates. i believe chrysler has a great future.
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