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DCX To Lose $673M In Chrysler Sale

06/29/2007, 10:45 AM

By Andrew Ganz

Chrysler’s new owner, Cerberus CEO Lenard B. Tessler, commented that DaimlerChrysler – now just Daimler – “paid us to take the company.” Although Cerberus wrote a $1.3 billion check to Daimler, the Germans are loaning Chrysler money and eating the company’s short-term losses, according to The Detroit News. The bottom line: Daimler will lose $673 million just by ridding itself of the Chrysler Group.

In 1998, Daimler-Benz paid $36 billion for the “merger of equals” that resulted in one unified DaimlerChrysler. By May 2007, DaimlerChrysler was desperate enough to sell the group to Cerberus, an investment firm, for $1.3 billion. But there’s more to the story than just Cerberus’ purchase price. Daimler’s CEO, Dieter Zetsche, said that “Cerberus invested $7.4 billion into this transaction, which obviously is not any form of being paid.”

In a meeting with shareholders, Tessler made the aforementioned statement that there was more than meets the eye to the sale. Cerberus’ $1.3 billion check gave them ownership of the firm, but Daimler will provide loans and pay off Chrysler’s immediate losses.

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06/29, 11:18 AM

posted by:

Htay5500

more careless news… NEXT!!!!!!

06/29, 11:21 AM

posted by:

Get Real

Come on people, help Mercedes here.

Buy an S-500.

Today !!

06/29, 11:32 AM

posted by:

CTS DRIVER

good!!! they raped the hell out of chrylser and tossed it aside like a used condom when they were done.

06/29, 11:53 AM

posted by:

norby413

Daimler learned an old lesson.
You can put lipstick on a pig, but it’s still a pig.

06/29, 12:16 PM

posted by:

illwill

Lmfao, serves daimler right.

06/29, 12:47 PM

posted by:

Scarface03

I think it is in the August Motor Trend this month that reported that when Daimler sent Dr. Z. over from the fatherland to the U.S. to run Chrysler, the company posted billion dollar profits (not multiple billion, just $1 to 2 billion). This was 2004 – 2006. However, Daimler called Dr. Z back to Germany and Chrysler posted a $2 billion loss after he left, in the first quarter of 2007, thus the fire sale.
Why the quick turnaround? Did Chrysler really just miss the boat this year, or was the reported success of Chrysler just clever German accounting?

06/29, 12:48 PM

posted by:

purdue

Daimler pillaged Chrysler and it serves them right. Chrysler was doing great (you can google the DCX own files) when they were bought. Then Daimler mismanaged the Hell out of them.

06/29, 12:49 PM

posted by:

purdue

…while Chrysler makes a larger profit per vehicle than any other auto manufacturer.

Plus, it’s always interesting to read the nitty gritty of the deal.

http://www.daimlerchrysler.com/Projects/c2…/99426_book.pdf

06/29, 1:38 PM

posted by:

Saud

Dayum, that’s gotta hurt.

06/29, 5:02 PM

posted by:

AMGoff

Exactly CTS_DRIVER I couldn’t have said it any better. Daimler absolutely butchered Chrysler and are now getting off pretty easy after sucking Chrysler dry and leaving the half-eaten carcass on the side of the autobahn. I would be twice as happy had Diamler paid twice as much.

Everyone is constantly crapping on Chrysler while mixing insults with outright lies.

The last time I checked, Chrysler had more than enough cash to be happy had they remained independent, somewhere along the lines of $8-12 Billion dollars. Before the “merger” they were turning out some of the most stylish and reliable cars on the market. They were riding a wave of successes – the LH cars, the Ram, the Cirrus, the Sebring, and piss on it as you might, the Neon. The Neon alone cause all other car manufacturers to go back to the drawing board in order to catch up to Chrysler in the compact market.

If Chrysler was in such a beleaguered state prior to the “merger” does anyone honestly think that the German stockholders would have approved such a deal and that Diamler was merely playing savior to a failing automaker? Please!

Chrysler products were consistently rated more reliable than Mercedes and the company was consistently more profitable. The “merger” was to be one of equals, a scam we were all led to believe. Unfortunately it turned out to be an out right takeover and Diamler once again showed their incompetence. They sucked Chrysler Financial dry to bolster their profits, made Chrysler use old Mercedes parts while charging them ridiculous amounts of money for them, killed the Plymouth brand leaving the Chrysler Group with an incomplete brand lineup, and worst of all had the nerve to blame their piss poor management skills on Chrysler.

It was a spin of the worst kind and many of you were obviously naive enough to buy into it.

And in the end when the sale of Chrysler is final, Diamler will find itself in the greatest danger of takeover the company has ever seen due to it’s poor market standing.

I can’t wait until an independent Chrysler can take Mercedes full on, especially in the entry-lux market. Cadillac has already proven that there’s still a lot of talent left in the American auto industry and I hope that the Cerberus deal is yet another affirmation of that.

06/29, 5:13 PM

posted by:

1c3d0g

I guess the problem was basically that the Germans (no offense to anyone from that country) didn’t want Chrysler to be more successful than their own, domestic brand, Mercedes-Benz. Still though, lots of interesting stuff happened. The 300 and Charger were born, the Viper got tuned by McLaren, the RAM got even better through those years (though the new diesel V-8 is a step backwards from the I-6, IMO) etc. Hopefully their new owners will take good care of the brands and continue innovating, especially with Jeep, which I feel has a lot of potential.

06/29, 5:25 PM

posted by:

Stuart

What the hell do you guy eat when you wake up?

Who ever think chrysler made sexy cars seriously needs glasses. Seriously, I have seen crap companies but Chrysler tops them all. Their cars look crap, drive like crap, go like crap and the whole lineup is way way way to truck dependent. The only reason they actually made half a profit before was because their whole lineup was full of truck like the vayager, but now its $3/gallon their totally stuffed cos everyone want small cars and chrysler doesn’t even know what a small car is let alone make one. LOOK AROUND PEOPLE your whole american industry is truck reliant and that why the japanese are whopping your ass. On top of that the UAW is right there to make sure they can put the final nail in the coffins.

By the way for your information, Daimler didn’t actually lose out that much. By dumping Chrysler, Daimler’s value as a company has rocketed by, wait for it — $22 billion dollars — plus they still have 20% of chrysler corp. Throw into that the fact that they DON’T have the $18 billion dollars worth of pension funds hanging over their necks (now i believe it belong to cerberus) they have done a great deal in some ways. They don’t even have to put any more money into chrysler and can sell the shares for around $8 billion IF the company ever becomes a sucess. If it doesn’t then that cerburus’s problem, either way they are free.

06/29, 7:43 PM

posted by:

TOZO

Yeah, take that, Daimler!

06/29, 9:01 PM

posted by:

GMCsyclone#478

AMGoff, agreed and brilliantly written. Stuart doesn’t get it yet.

06/29, 9:24 PM

posted by:

LP640

===========================>^^^Stuart all American cars are pretty much crap but Chrysler is among the worst of the worst, i mean look at the 2007 sebring and tell me who in their right mind would be seen driving one of these monstrosities????

06/30, 1:42 AM

posted by:

Jordan

poor, poor chrysler.

amgoff, i agree wholeheartedly. chrysler started the cab-forward design era and was managing to be pretty profitable before daimler bought them and screwed them over.

the 90s will be remembered as chrysler’s glory era between the ****ty 80s and the even ****tier 00s.

06/30, 8:47 AM

posted by:

Stuart

GMCsyclone#478 – What don’t I get exactly.

Do you math= $35 billion
-$22 billion

Leaves $13 billion loss
– $8 billion if chrysler goes up in value for the 20%

leaves $5 billion loss

but when you consider chrysler had $10 billion to start with then the number mkae the whole thing look like a profit for daimler. Plus don’t forget the impact of the $18 billion dollars of pension that daimler WOULD HAVE taken had they still owned chrysler. Now if chrysler do go under they are taking cerburus with them. Gotta love the germans hey

06/30, 10:22 AM

posted by:

AMGoff

Jordan, the 80’s don’t even compare with the 2000s in terms of ****tiness. Sure, the K-cars were not pretty by any stretch of the imagination but they were economical, fairly reliable, easy to work on, and were just what Chrysler needed at the time. All of that added up to them selling like hotcakes. The 80’s also brought the mini-vans, while certainly not my cup of tea, they were an undeniable success. It was the combination of the k-car and the mini-van that catapulted Chrysler back to profitability and were the reason Chrysler was able to pay back their loans seven years ahead of schedule. It was in turn that the profits of the 80’s which paved the way for all of Chrysler’s success in the 90’s. Compared to the years of German stewardship, the 80’s were a wonderful time for Chrysler.

06/30, 10:30 AM

posted by:

AMGoff

Stuart, you really should stop buying your lederhosen two sizes two small. Also, I’ve been wondering, how exactly does Dr. Z’s mustache feel around your bunghole? It tickles I suppose. When I want automotive commentary from someone who’s probably never changed their own oil I’ll ask for it. Thanks.

06/30, 11:40 AM

posted by:

Rompn4x

Thats what they deserve for raping a once great American company. Selling Chrysler still won’t erase the fact that MB cars still rank at the bottom for reliability HA =P

06/30, 11:49 AM

posted by:

AMGoff

You know what else, the more I think about it I have never come across someone whose ignorance was only outweighed by their arrogance. Stewie, the difference between you and I is not what we eat in the morning. It’s that while I have a preference for American cars, I don’t go around throwing blanket insults and the entire European and Japanese car industries. Doing so only proves what you are – an uninformed moron who knows nothing about cars. I wish I could just gloss over auto industry headlines and form “educated” opinions like yourself. Unless you have driven every single American make and model you need to exercise a little more restraint with the streusel-lovin mouth of yours. We currently have 5 vehicles, 2 Chryslers, 1 Buick, 1 Jeep, and a Harley. Ranging from 20 years old to 4 years old (the Buick, because I had no desire to buy a German Chrysler, for obvious reasons.) Aside from normal wear and tear I haven’t had one major problem with any of them. Why is that? Could it be that I am just the luckiest American car owner? Or could it be that I take the time to properly maintain all of my vehicles myself. It’s not you get what you pay for, it’s you get what you take care of. You also don’t have a single clue about the American car market. “Way too truck dependent.” Where do you get this? Last time I checked Chrysler had more cars and car based ute’s in their lineup than they do trucks. There are a lote of Americans that are reliant on trucks for their livelihood. But then again for someone like you who probably never gets his hands dirty doing any kind of real work, even having one truck in the lineup is too much. Are Americans some how forced to buy these trucks? Of course not, they buy them because they like them not because they’re forced to. Quick reality check… what’s the best selling vehicle in the world? It’s an AMERICAN TRUCK! Just because you’re a panty-waist who can’t think of any situation beyond yourself doesn’t mean you’re anywhere close to being right. If Detroit ceased to make even a single suitable car I would look at the import market in a heartbeat. But my definition of suitable, that is an easy to maintain car that gets me from point A to B in relative comfort, is obviously way different than yours. Maybe you need to find a home on some poser, import-centric site and stop littering sites like these with your biased, uninformed dribble.

07/01, 1:18 AM

posted by:

Stuart

Amgoff – you are a typical load mouthed retard. You think you know it all but have no idea what you on about, you just go on and on and on and……. I can’t even be bothered to actually read your lecture cos its stupid like you and don’t make sense just like you.

Now learn to read and then understand that I never said Japanese car were ****. They are miles better then american cars (Except euro Fords which are european anyway). Your choice of cars shows you **** cars anyway but for your information we also have 5 cars, 2 small ford fiesta’s, Volkwagen Golf, Mitsubhishi Evo, Merc e320 cdi. Plus on top of that I done car engineering back at college some 15 years ago so I think I have a better idea of how to run a car then you. You probably struggle to change a tyre let alone a engine.

P.s. Just face the music, the germans done you nice and good. They actually made a profit if you include the 20% and 10 billion chrysler had to start with.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070628/OPINION03/706280407/1148/AUTO01

Can’t read, then get your mama to read for you

07/01, 2:05 AM

posted by:

BLISS

THE TIME IS COMING FOR MERCEDES-BENZ REIGN SUPREME …….SOMETHING THAT WILL ASTONISH THE WHOLE ENTIRE UNIVERSE.

07/01, 2:07 AM

posted by:

BLISS

THERE WILL BE GREAT GREAT GREAT CHANGES AT MERCEDES-BENZ CAR GROUP…..MORE PROFITABLE IN EVERY WAY.

07/01, 2:09 AM

posted by:

BLISS

SOMETHING VERY VERY FASCINATING IS COMING OUR WAY FROM MERCEDES-BENZ.

07/01, 8:50 AM

posted by:

Stuart

Calm down man Mercedes will always do well as they always have done. Its chrysler everyone should be worried about

07/01, 11:46 AM

posted by:

AMGoff

And you are the typical high-strung, arrogant, euro-centric snob that was weaned from your mama’s tit way to late. You say you didn’t read the post, but you did because you love the attention. You just don’t want actually answer any of the points laid out there. It’s one thing to want to be on your high horse but there’s a moral ground you have to defend. You insult the entire American auto industry and you can’t even admit that Japanese cars are better and more reliable than European cars. Just from the dribble you write everyone can tell that you’re a biased xenophobe who thinks anything that wasn’t made on the European continent is a piece of crap. “I done car engineering back at college,” please tell me that english is your second language? One usually shouldn’t speak with the grammar of a four year old when he make assertions about going to college. I learned to work on cars from my Dad, in my driveway, at home – and he didn’t go to college for it. I could probably rebuild a carburetor before you finished changing your own oil. Somehow, despite the fact that all four of my cars have a combined 450,000 miles on them without any major mechanical problems still means that they’re crap… because they’re American. I can smell your pretension from here. And since we want to start throwing useless links up here:
http://www.barringer1.com/jul04prb.htm

07/01, 2:57 PM

posted by:

Stuart

Is your head seriously stuck that far up your mums ass that you can’t even get any information which is less then 5 years old. All these models have been replaced and just looks at their JD ratings now. Japanese may be more reliable then SOME europeans but for arguments sake where do you think they design and test these cars??? No american car can even compete with any japanese or european car from the eighties let alone right now.

The only half decent car to come from america is the mustang but all that could do was fast in a straight line. I have to admit ford in europe are good cars but they are just that EUROPEAN models. Ford & GM don’t even believe that retards like you can tell the difference between old and new thats why we have the 3rd generation ford focus coming up and still stuck on the first generation with minor improvements.

Face it you bimbo, americans love european cars and that includes the lambos, ferrari’s, Porsche, Bmers and Mercs. Only retards like you would choose american over ANYTHING else because of patriotic reasons and pay over the odds for your pile of ****. ITS THE ONLY REASON WHY THE BIG THREE ARE STILL ALIVE.They know they can sell anything with a american badge on it and nobs like you would buy it.

P.S. I am infact english. We created the english language so remember that next time you try to make a point about how good your language is. Remember what you speak yet? You the bigest retard ever.

07/01, 7:34 PM

posted by:

BLISS

CHRYSLER WILL GET BACK ON TRACK…….DONT WORRY.

07/01, 7:39 PM

posted by:

BLISS

I WISH CHRYSLER ALL THE BEST IN THEIR FUTURE ENDEAVOURS…..AND HOPE THEY MAKE GREAT CHANGES IN THEIR PRODUCT LINE.

07/01, 7:41 PM

posted by:

BLISS

SOMETHING VERY VERY INTERESTING IS COMING OUR WAY FROM MERCEDES-BENZ.

07/01, 9:02 PM

posted by:

AMGoff

Well that’s a good thing that you’re English pal, that means you and I can meet when I come visit my uncle this September. I’d love to see if your arrogance comes through in person. “We created the english language,” that’s real mature. I didn’t realize it was a concerted effort on your part to create the english language. Some how I thought it was a gradual evolution over hundreds of years from the vulgar language of the germanic tribes with infusions of gaelic and latin along the way. My mistake! While you may have proven that english is your native language, you’ve yet to show any decent comprehension of it. I don’t recall a single time that I made some sort of all encompassing statement with regard to European cars like you continue to do with American makes. All I’ve commented is the poor reliability of Mercedes, a comment which is backed by every automotive trade publication and reliability survey for the past decade. Unless you can tell me that you’ve driven every single American automobile, your comments only prove that you’re a biased, arrogant ass. The four American cars we currently own haven’t given me a lick of trouble beyond normal wear and tear. Our newest car is an ‘04 Regal GS. it’s quick, quiet, comfortable, handles well and we got it for a good price. Beyond that Buick’s reliability ratings constantly rate at the top of the pack, unlike Mercedes. And since when is it a sin to want to support my own economy? Besides, if you want to get real immature don’t forget the fact that you’d be speaking german right now if it weren’t for the big three. Maybe if you take your head out of your ass and read what you post, you’ll see what everyone else sees.

07/02, 1:07 AM

posted by:

Stuart

Your so full of crap that its gone beyond a joke. I forgot we would be “speaking german had it not been because of you”. You dumb ****, america was next on the hit list and you only got involved because had england got taken you were gonna get screwed BIG TIME. Wonder who would win Europe, british empire japan and all the allies

07/02, 1:32 AM

posted by:

Stuart

Your so full of crap that its gone beyond a joke you bloody retard. I forgot we would be “speaking german had it not been because of you”. You dumb ****, america was next on the hit list and you only got involved because had england got taken you were gonna get screwed BIG TIME. Wonder who would win Europe, british empire, japan and all the allies or the all mighty America. Only a retard like you would bet on America. Sure you HELPED but you didn’t win for us. Ironically when you entered the war to get your ass whopped by the alomighty mercedes benz design aeroplanes. So next time your stupid dip**** mind thinks about saying any comment of the sort again seriously remeber how close you come as well as us to
speaking german.

Now as for me not testing every american model there is-your again full of crap seeing as you never tested all the Mercs to say their unrealiable (you probably havn’t even sat in one let alone drove one). All the mercs you have spoken of have all been replaced and according to the JD survey Mercedes was quite high up. At least Mercedes give a crap about their customers. Remember the ford which blew up every time it was hit from behind or the explorer that reved itself. Remember how the companies rather pay compensation for the death then actually pay to get the car repaired beforehand.

Just because you like american don’t mean everyone help has to. Ever wonder why american rather buy japanese or european. Wonder why Mercedes sell almost the same amount of cars as Cadillac even though they are way more expensive or that out of 10 american 9 would easily take a Mercedes over the cadillac equivlant or even the fact that american car can’t sell outside of america because they are well below rival such as the Saab and volvo let alone BMer and Mercs.

Seriously **** suck do your maths. Ask 5 people you know what they would rather take any cadillac or their Mercedes equivlant and find out for yourself.

07/03, 1:05 AM

posted by:

Stuart

Hey GrandNational also probably known as AMGoff, what points are actually good you poor excuse for a turd. People that tend to take the mickey out of “queers” (or gays as civilised people say) tend to be unsure about their own sexuality. Mind you. you are probably more the sort of guy who likes to feel connected to the car via the exhaust pipe.

As for the american industry, any person (unlike sheep shagging uneducated fools like you) will see that americans cars are too truck dependent and struggle to turn corners. Notice how the japanese are selling more cars because they are more fuel efficient and plain better. American cars are the worst out of the european, Korean and japanese. Thats why the american big three’s days are limited.

As for choking on a scone, you should be careful for what you wish for pussy cos it might just come back and happen to you. I could see it now, you set on fire after your supposedly brilliant american car blow up after hitting the tree cos it could handle any corner and had no brakes even with a 6.0ltr engine. Personally I think the sooner the better. GHood ridence to bad rubbish

07/04, 12:57 AM

posted by:

Stuart

Well you say im ignorant but then you tried to point out that Mercedes makes unreliable cars. As you said without actually owning the car over a period of time yourself, you cannot pass judgement about any Mercedes as I shouldn’t American cars. Any and every person has their own opinion and thats their choice but saying that Mercedes is unrealiable using information from the last decade about their prior generations does not necessarily mean the new generation are automatically unrealiable. Just look at the JD power survey from a few days ago that says Mercedes is most realiable in the E-class, S-class and GL categories.

07/04, 11:43 AM

posted by:

AMGoff

I believe if we look at what I said in the last post… “If they are finally getting their act together then good for them but for the past decade have never ranked towards the top in reliability surveys.” So again, if this is the case then good for them. Why are you so protective of Mercedes, is it because you own one? I own Mopars, while all of mine have been good to me, I can atleast admit they’ve made some real blunders. Does six-months of good reliability ratings, on new, yet to be tested models somehow make up for the last ten years? I’m just fascinated by the fact that you seem unable to say anything bad about Mercedes.

07/05, 12:13 PM

posted by:

Stuart

Well to tell you the truth my E320 CDi is now two years old and I couldn’t actually have brought a better car. Personally I still believe I brought the best car in its class back then and now. mercedes is probably my favourite brand and to say it unrealiable when you don’t own one is unjustified. So maybe there were some unsatified customer but there are alot more satisfied customers and thats why they keep coming back.

With domestics you should have notice that I left out Chryslers for obvious reasons. Plus as I mentioned I left out Ford EUROPEANs as they are actually decent cars (shown by the fact I have two). I don’t like the fact the american GM and ford cars are so lazy. Like come on 8.3ltr for 600bhp in a viper. I guess ford are actually learning by using the european counterparts in the next few years so at least thats something.

07/05, 5:26 PM

posted by:

AMGoff

Fair enough, but how can you explain the JDPower surveys from 2006 and back? You’re are completely correct, I’ve never owned a Mercedes as I can’t justify the cost. But my Buick Regal GS is three years old now and it’s never been in the shop once. It’s quiet (Lexus quiet), fast (3.8L supercharged V6 that produces 240hp and whopping 280lb-ft of torque at a low 3200rpm), comfortable heated leather buckets with good lateral support, and all the electronic goodies I could ask for (dual electronic climate control, power sunroof, hands free calling, etc..). It’s the nicest car I’ve ever owned and we got it for a little under $26-grand. That’s a whole lot of car for that kind of money. The same goes with my wife’s ‘99 Chrysler 300M, the only thing that has ever gone wrong with it was a broken tie-rod that was completely her fault, I replaced the part myself for $71. We still have our Sebring Convertible that we bought ten years ago, again with no major problems even though it still enjoys weekend use every summer. So I will concede that I can’t comment on Mercedes first hand much like you can’t comment on mine first hand. Perhaps the Mercs that make their way to England are built better than the ones that wind up in the States. But I never really saw the point of insulting me for preferring to buy cars made in my own country just as I thought it was uncalled for insulting the entire American car industry knowing full well you’ve never driven the cars over here. I’ve test driven a lot of different imports but to me I don’t feel I’m getting that much more for the extra money. I think you and I just got off on the wrong foot as we’re both rather blunt with our opinions. But other than the fact that you don’t like American cars and I do, we’re probably not all that different. So right now I am apologizing to you for any of the childish, personal name calling.

08/26, 5:37 PM

posted by:

Stuart

you full of so much ****

 
 
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