Cerberus is buying Chrysler

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The German auto company, DaimlerChrysler announced that it finalized the selling of the majority package to its American division to a company of Cerberus Capital Management investments fund.
Cerberus Capital Management must pay $ 10.1 milliards for 80.1% from Chrysler. “It is a new chapter in our company history”, said the DaimlerChrysler president, Dieter Zetsche.

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There were some things that keep down this to happen and Cerberus wouldn’t be capable to collect all the money and this could mean the collapse of the financial accord. So, Daimler Chrysler decided to help for this finance operation together. The part that remains from the company will be renamed Daimler, name acquiescent by the shareholders.
The Chrysler future was insecure when it fights against its huge wastage, including the one of $ 1.460 milliards from the first 3 months of this year. This acquisition is made after 10 years from the fusion (evaluated at $ 36 milliards) between Jeep and Dodge Company and Daimler-Benz AG. The same as most of USA vehicle marks, Chrysler was affected by the impact of lower earnings and big competition coming from Japanese companies.

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Made in 1992, Cerberus specialized in acquisition of companies darkling in difficulty and making them good, with methods concerning higher reduction of outlays. At the moment, the company has almost 50 companies, with total earnings of $ 60 milliards. In 2006, GM renounced of its majority package of its financial division (General Motors Acceptance- GMAC) for $ 14 milliards, bought by a Cerberus managed group.

Tags: cars, car news, Cerberus, Chrysler, DaimlerChrysler, Cerberus Capital Management, GM, Jeep, Dodge, Daimler-Benz AG

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