Cerberus to purchase 80% Chrysler stake; UAW chief supports deal

[ScreamingMeemie]

Source: Detroit Free Press

snip-

UPDATED 5:48 A.M.: In a deal to end nine unhappy years of marriage between Chrysler and Mercedes, DaimlerChrysler AG announced early this morning that it had picked private equity firm Cerberus Capital Management to take a majority ownership in the Auburn Hills-based automaker.

Cerberus, a New York City fund with several ties to the auto industry already, will pay $7.4 billion for an 80% stake in the maker of Chrysler, Dodge and Jeep brand vehicles.




DaimlerChrysler AG plans to change its name to Daimler AG, focus on its Mercedes luxury brand, and retain about 20% of Chrysler, the company announced.


snip-
DaimlerChrysler's announcement, made at 4:31 a.m., comes nine years after Daimler-Benz AG and Chrysler Corp. united at the cost of around $36 billion in what at the time was called a “marriage made in heaven
-snip

*Bullshit...bullshit. Best interests my ass. They've already effectively broken the UAW at tier suppliers like American Axle, and now, the beat goes on. Farewell Detroit.

Read more: http://freep.com/apps/pbcs.dll/article?AID=/20070514/BUSINESS01/70514006

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*Bullshit...bullshit. Best interests my ass. They've already effectively broken the UAW at tier suppliers like American Axle, and now, the beat goes on. Farewell Detroit.

[durtee librul]

1. Gettlefinger (UAW 'Pres')

should getta da finger. This guy has NEVER had any of the worker's interests at heart. They haven't had a good president in a long time. The slide toward kissing ass started with Leonard Woodpussy (aka Woodcock)

[rucky]

2. Isn't he the three-headed dog that guards the gates of Hell? n/t

[Cooley Hurd]

6. Yes - it sounds like one of those evil corporations run by a James Bond villian...

http://en.wikipedia.org/wiki/Cerberus

[CJCRANE]

7. Yes, how subtle.

I guess "Hydra Corporation" would have been too obvious.

[madrchsod]

3. maybe chrysler can over come the perception

of making incredibly bad cars and start making ones that last more than 100,000 miles without self destructing. but i doubt it with this crew. they will cherry pick the best parts of chrsyler and sell the rest to japanese or indian investors.

[ScreamingMeemie]

4. I do have to say one thing here. We've always bought Chrysler/Dodge.

We had a '88 Dodge Ram that's still running with 250,000 miles on it, a '95 that we sold with 125,000 on it and the only Chrysler we've had a problem with in 20 years of buying them was a minivan with a transmission problem, so I won't agree with you there. But this deal is going to be the final blow to the already suffering economy in Detroit.

[madrchsod]

13. i`ve owned a lot of dodges over the years

the 97 i had first trans went out at 110,00 and the second went out at 250,000. otherwise the intrepid was one of the best i have ever owned.if it was`t for the transmissions i`d buy another. my family has owned over 20 chrysler products over the last 40 years and never had the problems the 90`s and 2000`s have had. the 2.7 engine seizes because the bearings and the sludging problem.

i switched to honda for now.

[ScreamingMeemie]

16. We've only ever really had Chrysler/Dodge, dating back to the 70's and up to

now. I'm quite bummed. My BIL is employed by Chrysler. I wouldn't take food out of his kids' mouths.

[tanyev]

5. Dan Quayle is chairman of Cerberus.

Maybe they'll phonetically rename the company Krysler.

[Joe Bacon]

8. Dan Qualyle, you're NO LEE IACOCCA!

Bentsen turns in his grave over this :evilgrin:

[Cessna Invesco Palin]

9. I believe John Snow is the chairman now, not Quayle. n/t

[Cooley Hurd]

10. Yikes! That's not much better...

[tanyev]

11. Then Mr. Quail needs to update his website.

Since leaving public office, Dan Quayle has authored three books: Standing Firm, A Vice-Presidential Memoir which was on the New York Times bestseller list for 15 weeks; The American Family: Discovering the Values that Make Us Strong; and Worth Fighting For. He established and sold an insurance business in Indiana . For two years he was a distinguished visiting professor of international studies at Thunderbird, The American Graduate School of International Management. Currently, Dan Quayle is Chairman of Cerberus Global Investments, LLC (Cerberus), President of Quayle & Associates, and serves on the boards of directors of IAP Worldewide Services, Inc., K2, Inc and Aozora Bank, Ltd in Tokyo . He makes frequent public appearances and speeches, and writes a nationally syndicated weekly newspaper column.

Dan Quayle joined the Cerberus Advisory Board in 2000, and currently serves as Chairman. Cerberus is one of the world's leading private investment firms, with over $16 billion in committed capital and offices in New York, Chicago, Los Angeles, Atlanta, London, Baarn,(The Netherlands), Frankfurt, Osaka,and Tokyo. As Chairman of Cerberus Global Investments, Dan Quayle has been actively involved in new business sourcing and marketing for Cerberus in North America, Asia and Europe. His extensive global network of public sector and private sector decision-makers, combined with his investment expertise, have significantly contributed to the growth of Cerberus. Dan Quayle has offices in New York and Arizona; He regularly travels throughout the US, Europe and Asia to meet with the heads of investment banks, corporations, buyout shops, potential investors, and other business leaders. His responsibilities include (1) ensuring that Cerberus stays at the forefront of deal flow activity, (2) facilitating Cerberus' entry into new markets and industries, and (3) fostering potential transaction partnerships

http://www.vicepresidentdanquayle.com/biography.html

[anotherdrew]

19. or cryslur or kreyesler. I can't believe they're so desperate to sell

getting 8 billion and they payed 36 billion just 9 years ago... seems like they took quite a soaking?

[DainBramaged]

12. The members get the corn cob, the investors get the profits

In 5 years, Chrysler will be gone, and the trade-in value for their cars will be worse than Ford's. Flee now, avoid the pain.

Edit, hit post to quickly


They WILL find a way to terminate or restrict pensions and medical benefits, bet on it. They have no loyalty to the workers.

[Sadie5]

14. No surprise here

I posted a few weeks ago about the Blackstone group who is associated with this bunch and got quite a few good results. The Blackstone group is bidding on the GM facility where my husband works and this is how I found out about their close association with Cerberus(or however you spell it). I knew many people who worked for Chrysler when they folded in Indianapolis about four years ago. The work was transferred to China, now they want to do the same thing with GM. My husband has put in 32 years and if his pension was taken away I'm not sure what would happen to us.

[ScreamingMeemie]

15. They've already done it at American Axle and are in process at Ford.

I don't want to be around for this contract negotiation. Good bye unions...as we knew them.

[PassingFair]

17. We are SCREWN.

Eaten up by monsters.

[ScreamingMeemie]

18. You know, Seattle looks better all the time...

:(