Chrysler bought by Cerberus group for…$7.45 billion !

In the dynamic car-maker’s world, hardly anything can be considered surprising nowadays. Still, Chrysler being bought is something !

Chrysler logo

Majority interest is now owned by private equity group Cerberus Capital Management, DaimlerChrysler AG announced the transaction. For $7.45 billion (5.5 billion euros), the Cerberus Group now owns 80.1% equity interest of the new company Chrysler Holding. The new name for the firm will be Daimler AG, as was decided in a Extraordinary Shareholders’ Meeting.

Changes that will follow worry workers at DaimlerChrysler. However, Chrysler Corp. CEO Tom LaSorda and Cerberus CEO Stephen Feinberg both promised no auto worker will loose his job. Fears are still normal, for this a Major change for all the company. Profits are estimated to modify thus :net profit according to IFRS in 2007 will be reduced by $4.1 billion to $5.4 billion, equity ratio of DaimlerChrysler’s industrial business is supposed to increase with 40%.

The pluses of the Chrysler Groups have always been excellent customer service, as well as the much-loved Chrysler, Jeep and Dodge vehicles and quality Mopar parts. Cerberus Capital Management Chairman John Snow said: “Cerberus believes in the inherent strength of U.S. manufacturing and of the U.S. auto industry. Most importantly, we believe in Chrysler.” If they really believe n Chrysler, that quality and prompt services, as well as customer relations should be priority number one!

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