Daimler sells stake in Chrysler

Manufacturing News, Source : TheManufacturer.com
Published : 22 May 2007 9:14

Car manufacturer Daimler has sold 80 per cent of its US Chrysler business to German company Cerberus Capital.

The private equity firm has bought the 80 per cent share for €5.5 billion, a considerable drop in price from the original $36 billion purchasing price that Daimler paid for the company in 1998.

Daimler appears to have hit troubled times over the last year, shedding around 13,000 US jobs and losing a substantial $1.5 billion.

Cerberus, also a majority stake holder of General Motors Acceptance, is well-known for buying companies that have hit hard times to make cut backs and bring them back to profitability.

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