It's Official.... Cerberus buys controlling intrest in DaimlerChrysler

[ProStockJunkie]

Cerberus to Buy 80.1% Stake In Chrysler Group - WSJ.com

MUNICH -- Private equity group Cerberus Capital Management will take control of the Chrysler group in a transaction valued at $7.45 billion (5.5 billion euros).
DaimlerChrysler AG announced the Cerberus deal this morning. An affiliate of Cerberus will acquire 80.1 percent of Chrysler, while DaimlerChrysler will retain 19.9 percent.
A press conference is scheduled for 2 p.m in Stuttgart, 8 a.m. Detroit time.


hope they don't kill the challenger now....

 

[DrRocket]

.....hope they don't kill the challenger now....

Don't be surprised if that's the first thing they do. When corporate brass want to cut costs, almost always the very first thing they do is go through engineering and cut a bloody swathe, both in expensive projects and personnel.

After that, the primary task of the people left is to find ways to cut production costs, either through the use of cheaper materials, or simplified construction. (3 bolts instead of 4, 10 spot welds instead of 14, 18 ga. instead of 16)
During this time, projects that hold low volume sales potential (Challenger) are either shelved for a while, or canceled outright.

I also wouldn't be surprised to see more profitable portions of the company (Jeep) to be parceled off to generate a quick profit to help pay the debt incurred by the purchase.

I'm not saying any of this is good or bad, simply the way these things work.

 

[HEMI6point1]

For their sake, they better not cancel the Challenger. Preproduction models are already starting to be made and people already have preorders in.

 

[yoda]

My stock went to $82 on opening today, but that was a shortlived excitement when I realized that things like the crate 6.1/6.4 stuff and the Challenger are gonna be the first things on the chopping block..

Cerberus will do what they do best...be prepared for the worst...

 

[Bowtie]

a little more food for thought

Daimler dumps Chrysler on Cerberus, taking loss to do so - May. 14, 2007

 

[Ted]

37 BILLION plus nine years of losses for nothing. WOW!