Chrysler = Sold

SILVER-ES · Post by **SILVER-ES** » Sun May 13, 2007 8:36 pm

Cerberus has agreement to buy Chrysler Group

Bill Vlasic / The Detroit News

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/ar ... 1148/rss25

INVUJerry · Post by **INVUJerry** » Sun May 13, 2007 8:43 pm

Oh good God. The end is near.

heyitsstock · Post by **heyitsstock** » Sun May 13, 2007 8:46 pm

no its prob for the better f mercedes

MoxHair · Post by **MoxHair** » Sun May 13, 2007 8:52 pm

Kill all the Boxy cars and bring back AMERICAN STYLING!

I want a Mini Viper (Demon) SRT-4!

I want a New Sport Compact that isn't a mini-minivan.

I want Mopar to stay a Performance Namesake.

I want the American Influence brought back to the company that I have loved since I was very little.

Go Mopar. Go American!

03blackrt · Post by **03blackrt** » Sun May 13, 2007 8:55 pm

Mopar or no car!

I didn't read the artical, but is Jeep and Dodge Trucks staying part of ChryCo?

EDIT:

Allpar News: Detroit News: Chrysler has been sold, perhaps down the riverCerberus Capital Management will buy Chrysler, according to the Detroit News, in a deal to be announced next week. Tom LaSorda is expected to remain as CEO, and Wolfgang Bernhard, the cost-and-job slasher, will probably be on the board of the new organization.

Run by 45 year old Steven Feinberg, Cerebrus has profited from its ties to key Republicans, fostered through actions such as appointing Dan Quayle to run European operations, appointing John Snow, former Secretary of the Treasury, to the chair position, and making heavy contributions to Congressman Jerry Lewis (a $110,000 donation was almost instantly rewarded with the renewal of a controversial $1 billion contract). Cerebrus' political contacts may have helped get US Attorney Carol Lam fired, as she was investigating Lewis' contributors (including Cerebrus).

Cerebrus currently owns $24 billion in holdings, including more than half of GMAC, all of Formica, Blue Bird, Remington Arms, and a number of other organizations.

He Hate Me · Post by **He Hate Me** » Sun May 13, 2007 9:06 pm

MoxHairR/T wrote:Kill all the Boxy cars and bring back AMERICAN STYLING!

I want a Mini Viper (Demon) SRT-4!

I want a New Sport Compact that isn't a mini-minivan.

I want Mopar to stay a Performance Namesake.

I want the American Influence brought back to the company that I have loved since I was very little.

Go Mopar. Go American!

Panhead · Post by **Panhead** » Sun May 13, 2007 10:30 pm

since lookin at the company's profile (Cerberus), they seem like they will do a good job re-vamping chrysler. well, atleast hope so. im just happy that dr. z doesnt have to do with chrysler anymore.

WykedHellFire · Post by **WykedHellFire** » Sun May 13, 2007 10:41 pm

03neonSE wrote:since lookin at the company's profile (Cerberus), they seem like they will do a good job re-vamping chrysler. well, atleast hope so. im just happy that dr. z doesnt have to do with chrysler anymore.

link to profile?

lolelectricbluesxt · Post by **lolelectricbluesxt** » Sun May 13, 2007 10:48 pm

MoxHairR/T wrote:Kill all the Boxy cars and bring back AMERICAN STYLING!

I want a Mini Viper (Demon) SRT-4!

I want a New Sport Compact that isn't a mini-minivan.

I want Mopar to stay a Performance Namesake.

I want the American Influence brought back to the company that I have loved since I was very little.

Go Mopar. Go American!

Hear hear!

(here here?)

Midnight_Rider · Post by **Midnight_Rider** » Mon May 14, 2007 1:19 am

Good riddance to Mercedes Bends if this story is true. The former Chrysler Corporation has been bashed, shredded, stabbed, kicked to the curb and left for death so many times. I just hope that this is for the best.

MyNeonSaysHi · Post by **MyNeonSaysHi** » Mon May 14, 2007 1:24 am

Midnight_Rider wrote:Good riddance to Mercedes Bends if this story is true. The former Chrysler Corporation has been bashed, shredded, stabbed, kicked to the curb and left for death so many times. I just hope that this is for the best.

Now bring back the Neon.

kc2005ptgt · Post by **kc2005ptgt** » Mon May 14, 2007 1:30 am

Oh noes!!! It's Cerberus!!!

I saw good bye to Mercedes, hello to american made cars again!!

Bring us back the sprot compact, coupes that are affordable, power, stuff...!

http://www.cerberuscapital.com/about_comp_prof.html

MyNeonSaysHi · Post by **MyNeonSaysHi** » Mon May 14, 2007 12:31 pm

kc2002acr wrote:Oh noes!!! It's Cerberus!!!

I saw good bye to Mercedes, hello to american made cars again!! Bring us back the sprot compact, coupes that are affordable, power, stuff...!

http://www.cerberuscapital.com/about_comp_prof.html

Are those snakes coming out of the butt of a three-headed dog?

silentneon01 · Post by **silentneon01** » Mon May 14, 2007 2:37 pm

bring back neons with 2.4 with 175hp stock!

bring back NYG and Plum crazy

get the challangers into the dealerships already

03blackrt · Post by **03blackrt** » Mon May 14, 2007 2:42 pm

silentneon01 wrote: get the challangers into the dealerships already

Forget the Challengers, get the dang Caliber SRT-4's to the dealerships! I've wainted long enough!

SILVER-ES · Post by **SILVER-ES** » Mon May 14, 2007 2:54 pm

silentneon01 wrote:bring back Plum crazy

It's coming, give it a month or so and the Plum Crazy Chargers will be out.

silentneon01 wrote:get the challangers into the dealerships already

That's coming too, there are spy shots of Charger/Challenger test mules already and a couple shots of Challenger sheet metal on the assembly line.

Also, Challenger >>>>>>>>> Caliber SRT-4

03blackrt · Post by **03blackrt** » Mon May 14, 2007 3:36 pm

^ Yeah, but the SRT-4 is already almost 6 months behind schedual for release. From what I hear, the Challenger is ahead of schedual.

Mr Josh Zombie · Post by **Mr Josh Zombie** » Mon May 14, 2007 4:12 pm

I hope the new SRT-4 never releases to be honest.

Ugly f#$king thing...

Neonix · Post by **Neonix** » Mon May 14, 2007 4:16 pm

Screw the Caliber. Bring on the Challenger!!

EDIT:

Opi wrote:I hope the new SRT-4 never releases to be honest.

Ugly f#$king thing...

MoxHair · Post by **MoxHair** » Mon May 14, 2007 4:30 pm

Neonix wrote:Screw the Caliber. Bring on the DEMON!!

EDIT:

Opi wrote:I hope the new SRT-4 never releases to be honest.

Ugly f#$king thing...

Fixed it for you.

bone-yard-racing · Post by **bone-yard-racing** » Mon May 14, 2007 5:02 pm

Bring back the neon letter writeing campaign. Bulid me the razor, the deamon would work too if I can get a hard top.

rOniN · Post by **rOniN** » Mon May 14, 2007 5:07 pm

Anything but a box would be fine...

Seems like the only car worth driving is the viper

The chargers are nice too...

Post by **Diablo0** » Mon May 14, 2007 8:14 pm

I wonder what my DCX stock is going to do

Doesn't appear that Benz will let it go completely though...

http://news.lp.findlaw.com/ap/o/51/05-1 ... 24b2a.html

They're keeping 19.9 percent.

SILVER-ES · Post by **SILVER-ES** » Mon May 14, 2007 8:55 pm

Smurf Benz. They need to just give it up, they've already raped and ruined Chrysler/Dodge/Jeep enough.

Although, I do thank them for the old E class platform.

03blackrt · Post by **03blackrt** » Tue May 15, 2007 12:40 am

Tom LaSorda's letter on the sale... (from allpar.com)

Dear Colleagues,

We are very pleased about the news today that DaimlerChrysler has signed
a definitive agreement to sell Chrysler Group, including Chrysler
Financial, to Cerberus Capital Management, L.P. I would like to take
this opportunity to discuss this exciting news and what it means for the
future of the Chrysler family.

We are confident that this transaction will create a stand-alone
Chrysler that is financially stronger, with a winning combination of
people, industry know-how, operational expertise and spirit of
innovation that will accelerate the company’s recovery and help us
regain our position as a competitive industry leader.

As you know, DaimlerChrysler looked long and hard for the right partner
for Chrysler in a competitive marketplace. We are confident that
Cerberus is the right strategic buyer for Chrysler, with a long-term
commitment to our growth and success. Cerberus has expressed great
confidence in and respect for the people of Chrysler and our leadership
team, and is committed to working constructively with both union
leadership and Chrysler’s management team to help us realize our full
potential.

As a private (non-public) company, we will be better positioned to
concentrate on our long-term plan for recovery, rather than on
short-term results. With the financial strength and additional
operational expertise brought by our investment partner Cerberus,
Chrysler will renew its focus on what has always made us special: the
passion, creativity and commitment of our employees, suppliers and
dealers to delivering exciting Chrysler, Jeep and Dodge vehicles and
quality Mopar parts to our customers.

The finance arm –- DaimlerChrysler Financial Services Americas -– also
is affected by this decision. The most important piece of information
is that Chrysler Financial will continue to support us and our dealers.
However, the framework for DCFS will change. The company will be split
up into two legal entities with Chrysler Financial as one company and
Mercedes-Benz and DaimlerChrysler Truck Financial as another.

Our future success will be supported by our continued relationship with
Daimler. We will continue to work together on technologies to bring even
better products to our customers. In particular, we will continue to
collaborate on technologies for clean diesel engines, two-mode hybrids,
fuel cells and other alternative powertrains that are especially
important in this climate of rising consumer demand for more
fuel-efficient vehicles. Other ongoing joint projects with
Mercedes-Benz also will continue.

Attached to this message is a letter from Dieter Zetsche that I
encourage you all to read. He remains a passionate supporter of
Chrysler, and he truly believes -– as I do –- that the new company
structure will offer us even greater prospects for success.

For those of you who may not be familiar with Cerberus, it is one of the
leading private investment firms in the world, with approximately $23.5
billion under management in funds and accounts. Currently, Cerberus has
significant investments in more than 50 companies that, in aggregate,
generate more than $60 billion in annual revenues worldwide, including
Air Canada and GMAC. Cerberus is highly respected for its long-term
investment horizon and focus on value creation. In addition, Cerberus
has a team of experienced operational professionals that includes
industry veterans with management backgrounds in the automotive
industry.

You should know that there are no new plans –- other than those
previously announced –- to reduce headcount. There are no additional
job cuts planned in connection with the transaction announced today.
This announcement also will not impact the provisions of the early
retirement and buyout packages previously announced.

Additionally, we do not foresee any impact on current union contracts;
all of the collective bargaining agreements remain in place, and the
upcoming negotiations will take place as scheduled. Cerberus has worked
together with unions in the past, and recognizes the important role they
play for Chrysler.

The transaction is expected to close this summer. In the meantime, we
will continue to operate under the vision established by the Recovery
and Transformation Plan (RTP), which will return us to profitability in
2008 and will deliver 2.5 percent return on sales by 2009. There are
several forward-looking elements in the RTP that take into account the
realities needed to succeed in the global marketplace. We must grow our
brands with strong, customer-focused products. We must defend our areas
of strength in the North American markets, while growing
internationally. And we must continue to build with alliances,
partnerships and innovative approaches to our business challenges.

Also attached to this message is a Q&A document with answers to other
questions you may have today. In addition, you should expect frequent
communication from the leadership team as this process moves forward.

As a stand-alone company, with strong backing from Cerberus, we must
demonstrate once and for all that we can win in this global marketplace.
It is ours to win. And we have it in our DNA to do just that.

On a personal level, as a fourth-generation Chrysler employee, this is a
dream come true for me to be given an opportunity to work with you to
restore Chrysler back to greatness. It will take hard work, but I know
that I can count on you to do whatever it takes to get the job done.

Sincerely,

Tom

welchspro · Post by **welchspro** » Tue May 15, 2007 3:42 am

Cerberus is such an awesome name....that's all i gotta say bout that!

lolelectricbluesxt · Post by **lolelectricbluesxt** » Tue May 15, 2007 3:56 am

Maybe they will finally let us 03+'s crack the code!

(Yeah right.)

OB · Post by OB » Tue May 15, 2007 4:34 am

I heard about this today in class. Wonder whats gonna happen with everything. Doesnt really matter to me though, the only Chrysler vehicles I ever liked were/are the Neon (duh) and the Viper. All new cars suck bawls, even if they do look good/perform good. Too much tech for my tastes. NGC is enough as it is. haha

MoparNeonMan · Post by **MoparNeonMan** » Tue May 15, 2007 5:35 am

Hot shite I may be able to get my srt Demon after all!! fing WOOT!

Frizbe · Post by **Frizbe** » Tue May 15, 2007 8:42 am

I *might* get back into a Dodge if they built the Razor, *might*