The new owner of Chrysler is....
05-13-2007, 05:28 PM
#1
JK Super Freak
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The new owner of Chrysler is....
Cerberus Capital Management
Cerberus Capital Management has reached agreement to buy the Chrysler Group in what would be a landmark acquisition of a major automaker by a private-equity firm, according to people close to the sale process.
The deal follows marathon negotiations between New York-based Cerberus and DaimlerChrysler AG, and is expected to be formally announced as soon as Monday.
DaimlerChrysler is said to have chosen Cerberus over bids by rival private-equity giant Blackstone Group and Canadian auto supplier Magna International Inc.
The sale agreement with Cerberus is expected to be contingent on final terms to be negotiated with DaimlerChrysler. No sale price was immediately known.
The deal marks the bittersweet end of the nine-year-old marriage of German automaker Daimler-Benz AG and the former Chrysler Corp., formerly the No. 3 U.S. automaker.
The sale to Cerberus also christens a new era in the aggressive push by private investors into the traditional domestic auto industry.
Officials at DaimlerChrysler, Chrysler and Cerberus declined to comment Sunday on the pending announcement.
However, people close to the process said Chrysler CEO Thomas LaSorda will remain as the top executive of the Auburn Hills-based automaker.
Cerberus executive Wolfgang Bernhard, Chrysler's one-time chief operating officer, will likely have a senior board position in the automaker's new corporate structure.
http://www.detnews.com/apps/pbcs.dll...DATE/705130357
Cerberus Capital Management has reached agreement to buy the Chrysler Group in what would be a landmark acquisition of a major automaker by a private-equity firm, according to people close to the sale process.
The deal follows marathon negotiations between New York-based Cerberus and DaimlerChrysler AG, and is expected to be formally announced as soon as Monday.
DaimlerChrysler is said to have chosen Cerberus over bids by rival private-equity giant Blackstone Group and Canadian auto supplier Magna International Inc.
The sale agreement with Cerberus is expected to be contingent on final terms to be negotiated with DaimlerChrysler. No sale price was immediately known.
The deal marks the bittersweet end of the nine-year-old marriage of German automaker Daimler-Benz AG and the former Chrysler Corp., formerly the No. 3 U.S. automaker.
The sale to Cerberus also christens a new era in the aggressive push by private investors into the traditional domestic auto industry.
Officials at DaimlerChrysler, Chrysler and Cerberus declined to comment Sunday on the pending announcement.
However, people close to the process said Chrysler CEO Thomas LaSorda will remain as the top executive of the Auburn Hills-based automaker.
Cerberus executive Wolfgang Bernhard, Chrysler's one-time chief operating officer, will likely have a senior board position in the automaker's new corporate structure.
http://www.detnews.com/apps/pbcs.dll...DATE/705130357
05-13-2007, 07:11 PM
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JK Enthusiast
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The big question now is how much are they buying? Are they buying all of the former Chrysler Corp. from before the Daimler merger, a portion of that (ie excluding the Jeep brand) or what?
05-14-2007, 03:41 AM
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Sold as Chrysler Group (incl. Jeep and Dodge).
http://www.forbes.com/feeds/ap/2007/...ap3716498.html
Last edited by moun10eer; 05-14-2007 at 03:57 AM.
05-14-2007, 04:03 AM
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So, who or what exactly IS Cereberus? Well, in Greek mythology, Cereberus guards the gates of Hades, and is a giant, three-headed fire-breathing dog from the underworld... Not exactly the image that I think of when I think "Jeep." Here's what that company REALLY is all about (this is from Wikipedia):
"Cerberus Capital Management LP is one of the largest private equity investment firms in USA. The firm is based in New York, N.Y., and run by 45-year-old financier Steve Feinberg. Former Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.
Founded in 1992, Cerberus invests primarily in companies which are near bankruptcy and hopes to make the businesses it acquires profitable [emphasis added by me].
The company has been a voracious acquirer of businesses over the past several years and now includes sizeable investments in sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. Its holdings amounted to $24 billion in 2006.
On October 19, 2006, John W. Snow, President George W. Bush's second United States Secretary of the Treasury, was named chairman of Cerberus.
Cerberus was recently involved in controversy surrounding its contributions to Republican Congressman Jerry Lewis. MCI, a company owned by Cerberus, had a $1 billion dollar contract to create the Navy/Marine computer network. However, the Defense Appropriations subcommittee released a critical report of MCI after receiving complaints about cost overruns and bad management. In response to this report, the committee had proposed to cut the MCI contract by 10%. In June 2003, Lewis, the head of the Defense Appropriations subcommittee, received over $110,000 dollars in contribution from Cerberus. Shortly thereafter, Lewis decided to preserve full funding for the $1 billion dollar contract. In 2005, Lewis was elected as Chairman of the House Appropriations Committee. He acknowledged that the fundraising efforts of Cerberus "played a very significant role" in winning the post. Before her dismissal, US Attorney Carol Lam began an investigation of Lewis's contributors in 2006. [1]"
"Cerberus Capital Management LP is one of the largest private equity investment firms in USA. The firm is based in New York, N.Y., and run by 45-year-old financier Steve Feinberg. Former Vice President Dan Quayle has been a prominent Cerberus spokesperson and runs one of its international units.
Founded in 1992, Cerberus invests primarily in companies which are near bankruptcy and hopes to make the businesses it acquires profitable [emphasis added by me].
The company has been a voracious acquirer of businesses over the past several years and now includes sizeable investments in sportswear, paper products, military services, real estate, energy, retail, glassmaking, transportation, and building products. Its holdings amounted to $24 billion in 2006.
On October 19, 2006, John W. Snow, President George W. Bush's second United States Secretary of the Treasury, was named chairman of Cerberus.
Cerberus was recently involved in controversy surrounding its contributions to Republican Congressman Jerry Lewis. MCI, a company owned by Cerberus, had a $1 billion dollar contract to create the Navy/Marine computer network. However, the Defense Appropriations subcommittee released a critical report of MCI after receiving complaints about cost overruns and bad management. In response to this report, the committee had proposed to cut the MCI contract by 10%. In June 2003, Lewis, the head of the Defense Appropriations subcommittee, received over $110,000 dollars in contribution from Cerberus. Shortly thereafter, Lewis decided to preserve full funding for the $1 billion dollar contract. In 2005, Lewis was elected as Chairman of the House Appropriations Committee. He acknowledged that the fundraising efforts of Cerberus "played a very significant role" in winning the post. Before her dismissal, US Attorney Carol Lam began an investigation of Lewis's contributors in 2006. [1]"
05-14-2007, 05:42 AM
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JK Super Freak
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Great. 
A buyer whose primary concern is short-term profitability (never gonna get those cargo tie-down loops now) and who is run by the most inept individual to ever hold the vice-presidency and a former administration official who escaped DC (Washington not Daimler-Chrysler) one step ahead of the law.
A buyer whose primary concern is short-term profitability (never gonna get those cargo tie-down loops now) and who is run by the most inept individual to ever hold the vice-presidency and a former administration official who escaped DC (Washington not Daimler-Chrysler) one step ahead of the law.
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05-14-2007, 07:10 AM
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JK Enthusiast
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Making Jeep profitable is a GOOD thing. What did Daimler really do for us?
The thing about Wikipedia is that anyone can add anything. YOU can go and update a page. There really is no oversight like in a real encyclopaedia, so you have to take things with a grain of salt.
The thing about Wikipedia is that anyone can add anything. YOU can go and update a page. There really is no oversight like in a real encyclopaedia, so you have to take things with a grain of salt.
05-14-2007, 07:48 AM
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And for the record, I wasn't trying to scare anyone or imply that Cerberus was an evil corporation - I was just curious who they were, and what they were about, and figured that many of you would have that same curiosity.
So, don't be freaked out or anything, yet. The DCX merger DID give us the best Jeep ever - who's going to argue that? I don't expect Cerberus to do much more than pump some money into the Chrysler group, while maintaining most of its current offerings). That's good news, short-term. Long-term, I wouldn't rule out the possibility of them selling off the Jeep nameplate for a quick and tidy profit, since it's the only arm of the Chrysler group that is "hot."
Just my $.02. Give the new guys a shot, and hope that antitrust laws and governmental oversight will keep the new owners from raping Jeep TOO badly...