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THURSDAY, NOVEMBER 26, 2009
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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

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(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.

CEO of the DaimlerChrysler automobile company Dieter Zetsche speaks during the annual general meeting in Berlin, Wednesday, April 4, 2007.
CEO of the DaimlerChrysler automobile company Dieter Zetsche speaks during the annual general meeting in Berlin, Wednesday, April 4, 2007.   (Associated Press)
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Related articles

Shareholders blast Zetsche, board on merger strategy
BusinessWeek

"If Chrysler is finally led before the divorce court judge, we would be very grateful"—Henning Gebhardt, head of German equities for Deutsche Bank
CNN

Reference

Where it all began: A timeline of the merger
Europe Channel


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private equity • Chrysler • health care costs • Blackstone Group • DaimlerChrysler • Dieter Zetsche • Cerberus Capital Management • Magna International Inc. • Detroit • business

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