Daimler AG, the German company that once owned all of Chrysler and now owns 19.9 percent, depreciated its stake in the Auburn Hill, Michigan, automaker from $268 million at the end of the second quarter of 2008 to $0, from an accounting standpoint, yesterday. Just over a year ago, Daimler said its nearly 20 percent share was worth $2.2 billion.
Daimler did say it plans to continue negotiations with Cerberus Capital Management over the remaining share of Chrysler, though it’s unclear how this latest announcement will affect the transaction.
“The pain level must be extraordinary over there — Cerberus and Chrysler and Daimler. You can just imagine how tortured they are,” Gerald Meyers, a University of Michigan business professor and former American Motors chairman, told the Detroit Free Press.
Despite Chrysler’s recent woes – which have been epic, even by Detroit auto industry standards – the company has burned through far less cash in the first half of this year than its two chief hometown rivals. Chrysler’s automotive and finance businesses lost $1.17 billion, whereas Ford Motor Company lost $8.6 billion and General Motors lost $18.7 billion.
