DaimlerChrysler Wants Divorce

Detroit legend's fate may be decided in a German boardroom -- but tk can't seem to get out of first gear
By J. Kelman,  Newser User
Posted Apr 4, 2007 4:22 PM CDT
CEO of the DaimlerChrysler automobile company Dieter Zetsche speaks during the annual general meeting in Berlin, Wednesday, April 4, 2007.   (Associated Press)

(Newser) – DaimlerChrysler is trying to unload its clunky Detroit half, its CEO (and occasional company mascot) Dieter Zetsche confirmed at a shareholder's meeting today. The news, which comes after nearly two months of eager speculation, was a relief to frustrated German shareholders, who have long seen Chrysler as a drag on the Daimler-Benz brand. Now Chrysler just needs to find a suitor.

Three potential buyers have emerged: Canadian auto parts manufacturer Magna International and private equity firms Blackstone Group and Cerberus Capital Management. But with $20 billion in pension and health care costs to cover, some analysts are speculating that the 82-year-old company may go super cheap: as low as the price of debt.