|
|
 |
Daimler and Chrysler Part Ways
The German-American auto concern DaimlerChrysler announced the sale of 80.1 percent of its American division Chrysler to Cerberus Capital Management for $7.4 billion yesterday. DaimlerChrysler will be renamed Daimler AG. Cerberus board chairman John Snow, who was U.S. secretary of the treasury from 2003 to 2006, said that Cerberus “believes in Chrysler” and a private investor like Cerberus will give the company's management the chance to concentrate on long-term plans.
When Daimler and Chrysler began their $40-billion merger in 1998, creating the world's fifth largest car company, it was called a marriage made in heaven. The concern bought 37 percent of Mitsubishi Motors in 2000. That company was near bankruptcy four years later. Around the same time, American automakers began to feel the effects of high oil prices, with car buyers showing preference for more economical Asian models. The big Detroit three – General Motors, Ford and Chrysler, all found themselves in crisis. Chrysler lost $680 million last year.
Cerberus Capital is one of the world's largest private investors, managing about $25 billion and owning shares in more than 50 companies, mainly in retail and finance. Former Chrysler chief operating officer Wolfgang Bernhard is an adviser to it. A key issue in Chrysler's recovery from crisis will be agreements with its unions. United Auto Workers president Richard Gettelfinger hailed the deal yesterday, but complex negotiations are still ahead.
Among others interested in Chrysler was the Canadian Magna International. That company announced last week that it was selling part of its stock to OAO Russian Machines, which is controlled by Basic Element, for $1.5 billion, presumably to raise money to pay for Chrysler. Russian Machines spokesmen say that the Canadian company is of interest to it as a producer of auto parts, and the Chrysler deal will not affect theirs. Last year, 4000 Chrysler vehicles were imported into Russia, 1600 of them being Jeeps. Chryslers other brands are Chrysler and Dodge.
www.kommersant.com
All the Article in Russian as of May 15, 2007
|
|
|
