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MiscellaneousChrysler Group Sold to Cerberus Capital Management LP
Posted by mike on 2007/5/14 6:57:17 (3405) reads

Breaking news this morning...

DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history Monday as it agreed to sell its money-losing Chrysler unit for only a fraction of what it paid nine years ago.

DaimlerChrysler (Charts) announced it will sell an 80 percent stake in its U.S. brand for $7.4 billion to Cerberus Capital, a private equity investment firm. The private equity sector has become a major force in acquisition of publicly owned companies in recent years.

DaimlerChrysler sells majority stake of its struggling U.S. brand for $7.4 billion to Cerberus Capital, a New York-based private equity group. The German automaker then known as Daimler-Benz paid $37 billion for the U.S. automaker in 1998, but it soon found itself weighed down by uncompetitive labor costs and losing sales to nimbler Japanese rivals.

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kassandr
Posted: 2009/6/2 16:51  Updated: 2009/6/2 16:51
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 Re: Chrysler Group Sold to Cerberus Capital Management LP

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pcnax25994
Posted: 2007/5/29 19:06  Updated: 2007/5/29 19:06
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 !!!WOW!!!55669
Good job gays

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Dak
Posted: 2007/5/24 12:15  Updated: 2007/5/24 12:15
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
With the 'Dogs of Hell' now guarding the gates at Chrysler does this mean Dodge WILL build the Demon ? >:^D

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myhotwheels22981
Posted: 2007/5/16 1:47  Updated: 2007/5/16 1:47
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
While Performance sells cars on Monday, Mileage keeps them running the rest of the week.

The (new) New Chrysler should employ these four steps across the board to make Chrysler stand out in the automotive world and make a bold statement...

1. All engines should be equipped with a mild hybrid system which will stop the engine when the brakes are applied, start the engine when the accelerator is pressed, and allow the car to 'jog' in battery-only mode in driving situations such as drive-thru's stop and go traffic, etc.

2. All 6, 8, and 10 cylinder engines should be equipped with the Multiple Displacement System (MDS)

3. Trucks and SUV's would be equipped with the Eaton Hybrid Hydraulic Transmission, and manual transmissions would be equipped with the simpler Hydraulic Launch Assist (HLA).

4. All gas engines would be equipped to burn straight gas or E85.

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RUBICON
Posted: 2007/5/14 16:40  Updated: 2007/5/14 16:40
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
One benefit, is that the company starts debt-free (will need to quickly resolve the healthcare and pension costs to avoid going back into debt). Another benefit is that the company will now be private... no longer at the whims of shareholders who are trying to make a quick buck instead of a long term investment.

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xjken99
Posted: 2007/5/14 15:46  Updated: 2007/5/14 15:46
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
NA NA NA NA, HEY HEY HEY GOODBYE !

Never was a fan of the MB/Chrysler setup. I think the products and quality are better than before the buyout but, overall with the exception of the Hemi, RWD, 300 and the new Wrangler there have been more misses than hits. Hopefully this is a great new beginning for Chrysler and all three brands survive and florish. I would like to see some of the old Chrysler (like Bernhart) guys come back and put some American pride back into the company.
Even if this doesn't workout and Chrysler ends up dying it dies an American company and not a German one.

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jason
Posted: 2007/5/14 10:46  Updated: 2007/5/14 11:19
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
This is the news I was hoping for! Wolfgang Benhard left DCX 2 years by the hands of lasorda which now will most likely be fired for losing the 1.4 b last year. As some may know Benard left VW in january to run Cerberus Capital Management LP which is very positive for the chrysler group. As for Jeeps maybe we can actually have a CRD wrangler now and maybe even a gladiator! Who knows..the future for chrysler is bright.


PS. Should be interesting what happens with GMAC and CFC (chrysler financial)???

Jason

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davert
Posted: 2007/5/14 10:41  Updated: 2007/5/14 10:41
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
Daimler technically never paid for Chrysler; it was supposedly a merger. All they did was swap some stock around, and they also never mention that $8-10 billion cash reserve, the huge profits they reaped the first two years, or the continuing huge profits from Chrysler Credit! Heaven forbid any reporters should actually do some investigation!

By the way, a bigger description of the players and the deal is at http://www.allpar.com/weblogs/ and at http://www.allpar.com/news/

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RUBICON
Posted: 2007/5/14 9:22  Updated: 2007/5/14 9:22
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
I had kind of hoped that Magna would have been the winner of the deal. However, I would rather see it go debt-free to a private investment firm than go off to another automaker (ie. GM and dismantled).

The 20% still owned by Chrysler means that CH will have access to the MB technology and platforms.

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erik
Posted: 2007/5/14 7:57  Updated: 2007/5/14 7:57
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
Chrysler now has the best chance to emerge as an independent entity in the future.

Daimler is off their back, sucking the profits and stifling the innovation we all know Chrysler created in years past.

Cerberus is a good organization (don't start about politics because the biggest donors to the Democratic Party currently are the oil companies)

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dyg
Posted: 2007/5/14 7:29  Updated: 2007/5/14 7:30
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
Jeep stayed with Chrysler.

I hope that this means:
- that Chrysler/Dodge/Jeep will be able to further improve products.
- that Chrysler/Dodge/Jeep will be able to extend/expand fleet sales for certain vehicles.
- that the continued 19.9% holding by Daimler AG will mean continued access to Daimler technology, engines, and hardware.
- that we will see an expansion (slight, not huge) of the product lines within Chrysler, perhaps including the reincarnation of the Plymouth brand as a mid-range car group or the Eagle brand as a low-range car group (for budget and fleet sales).
- that we will see the Chrysler group rapidly adopt hybrid drivetrains with several ICE choices; preferably Plug-in Hybrid Electric Vehicles, PHEVs) with optional diesel engines.
- that we will see a few more Jeeps in the Jeep tradition (and fewer in the "I wish I really were a Jeep" Compass style). This includes moving into pickups and away from crossovers.
- that we will see the expansion and revision of the Dodge full-size trucks (and some derivative Jeep full size trucks).
- that, due to the continuing partial ownership, the Sprinter will still be part of the US Dodge lineup.

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sylvanis
Posted: 2007/5/14 8:01  Updated: 2007/5/14 8:01
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
- that we will see the Chrysler group rapidly adopt hybrid drivetrains with several ICE choices; preferably Plug-in Hybrid Electric Vehicles, PHEVs) with optional diesel engines

PHEV's have a lot of plusses, but come the inevitible WI winter, my PHEV mpkw (miles per kilowatt?) would drop tremendously as I would have to heat it and run lights much more frequently. With an ICE, heating my Jeep is essentially free, as its a byproduct of the heat.

Now a diesel hybrid...I would jump on in a minute.

For those of you in warm climates, why can't someone build a hybrid that is mainly a PHEV but instead of a huge ICE that powers the car, how about a small gas/diesel generator (like 2-3HP) that will simply charge the batteries?


sorry about the threadjack

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skywater55
Posted: 2007/5/14 8:44  Updated: 2007/5/14 8:44
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
I like everything you said but the reincarnation of the Plymouth Brand. No thanks...they were pieces of junk or just throw away cars IMO. Thats how i remember them and thats the way they will always be in my memory and probably in many other peoples minds.....

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jeepxk
Posted: 2007/5/14 9:57  Updated: 2007/5/14 9:57
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
Plymouth were no more a piece of junk than the rebadged Dodge or Chrysler. What's the difference between a Dodge Neon and Plymouth Neon, Aries or Reliant K Car, Voyager or Caravan, Volare or Aspen etc....
They will never bring back the Plymouth name. Most auto companies are trying to do away with too many brands. I think the Plymouth brand was like Oldsmobile, most people thought it was an old peoples car that they would never consider buying.

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bkcurtis
Posted: 2007/5/14 16:43  Updated: 2007/5/14 16:43
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
I'm not sure what the big hoopla is over plug in hybrids. Am I missing something?

What type of fuel powers the vast majority of electric power plants in this country? Coal, one of the dirtyist forms of energy, that's right.

You're going to replace gasoline power with coal power--in essence. I must be missing something extremely simple here.

My brother-in-law just traded their Toyota Highlander hybrid in on a Ford Taurus. The reason: you have to drive the Highlander hybrid almost everyday to keep the batteries charged up. Anyone have any idea, because I don't, how much a set of those batteries run?

For the forseable future, I think diesel will be the fuel of choice. Personally, I don't want to hassle with a diesel car--I deal enough with a diesel in my work truck. However, I see the benefits--especially, in SUVs.

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RUBICON
Posted: 2007/5/14 17:35  Updated: 2007/5/14 17:35
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
"Coal, one of the dirtyist forms of energy, that's right."

A common (and inaccurate misconception). Modern coal plants are very clean, with very low emissions. Within the next decade new coal plants will produce zero emissions.

I would like Chrysler to work on developing a diesel hybrid, or preferably a diesel hydraulic hybrid. Hydraulic hybrids give a wider range of a usability without the need for expensive-to-recycle batteries.

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bkcurtis
Posted: 2007/5/14 19:26  Updated: 2007/5/14 19:26
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
Compared to nuclear, hydro-electric, or natural gas, coal IS the dirtyist provider of electrical power in the country--no matter how you slice it. There is no misconception about it.

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RUBICON
Posted: 2007/5/14 21:40  Updated: 2007/5/14 21:40
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
Did you forget about the disposal of nuclear waste? Causes a greater threat and longer lasting impact on the environment. The burning of bituminous coal in a near zero emission plant actually CLEANS the environment because there are huge piles of bituminous coal existing because at one time (until about 10 years ago) it was considered a waste byproduct of the coal mining industry.

Hydroelectric is extremely clean but causes extreme damage to local ecosystems (ie. destruction of natural habitats due to flooding).

Solar is about the only truly clean source of energy and I am sure in a few years we will find an impact on the environment from that too.

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dyg
Posted: 2007/5/14 19:54  Updated: 2007/5/14 19:54
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 Re: Chrysler Group Sold to Cerberus Capital Management LP
The big deal over PHEVs is this:
- For a diesel or gas motor, extending the range by hybrid and plug-in capability increases the fuel usage.
- Electric motors are more efficient, torquier, and more responsive that ICE motors.
- Electricity has the potential to be far, far cleaner than anything else by way of cleaner energy sources. While coal may still be the main source, Natural Gas, wind, solar, and other energy sources are forthcoming. Cars that are essentially battery powered with liquid fuel range extending generators a one piece of the puzzle of greener transportation and energy independence (i.e., national security).
- It's easier to regulate one big smokestack than 1 million tiny exhaust pipes. It's also easier to maintain the emissions controls on that one big smokestack than on 1 million tiny exhaust pipes.
- As far as your brother's Highlander goes (or went), if it had been PHEV, leaving it plugged in would have sufficed.
- And, finally, electricity is cheaper than gas for the same distance travelled.
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