Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Chrysler Sale Suggests New Deal for Detroit

Ford, GM see hope for restructuring labor costs

By Peter Fearon,  Newser Staff

Posted May 15, 2007 7:41 AM CDT

(Newser) – The sale of Chrysler to private-equity firm Cerberus Capital Management could be a watershed for the entire industry, the Wall Street Journal predicts. Cerberus thinks it can make the embattled carmaker profitable by restructuring its debilitating $18-billion health care and pension liability. If it succeeds without resorting to bankruptcy—which the airlines have found necessary—GM and Ford will surely follow.

The very possibility sent stock in GM and Ford soaring yesterday. Cerberus chairman John Snow said running Chrysler privately could afford automakers the patience to effectively restructure. Detroit's big three are hoping to sell the UAW a more favorable group insurance package this summer.

'
'   (Associated Press)
'
'   (Associated Press)
'
'   (Associated Press)
A row of Chrysler minivans are seen on display at a Chrysler dealership in Springfield, Ill., Monday, May 14, 2007. Blue chip stocks managed a modest increase, thanks to DaimlerChrysler AG's announcement that it will sell 80.1 percent of money-losing Chrysler Group to Cerberus Capital Management LP, a private...
A row of Chrysler minivans are seen on display at a Chrysler dealership in Springfield, Ill., Monday, May 14, 2007. Blue chip stocks managed a modest increase, thanks to DaimlerChrysler AG's announcement...   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Automakers Pushing 'Connected' Cars

Car Sales Jumped 14% Last Month

Chrysler Suspends Workers Accused of Drinking

Obama Should Campaign on Auto Bailout

Chrysler Turns 1st Profit Since Bankruptcy


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne