Friday, August 03, 2007

Chrysler American Again

Sorry for the lack of updates, but I've been working some long hours lately. While this blog is important, paying bills comes first until I'm back in school.

Some big news here. Chrysler is sold to Cererbus Capital. It's official. From the AP

DETROIT (AP) — Chrysler became an American company again Friday as Cerberus Capital Management gained a controlling share from Chrysler's German owners and started on the long road to restoring the 82-year-old automaker's luster — and profits.

DaimlerChrysler AG transferred an 80.1 percent stake in Chrysler to New York-based Cerberus, one of the world's largest private equity firms, in a $7.4 billion deal. The German automaker retained a 19.9 percent interest in the new company, Chrysler LLC.

"After months of uncertainty, then a period of transition, we are beginning a new chapter in Chrysler's proud history — and we have the chance to write a terrific story," Chrysler Chief Executive Tom LaSorda said in an e-mail to employees.

With the closing, Chrysler becomes the first U.S. automaker in private hands since Ford Motor Co. went public in 1956. Chrysler, which plans a companywide celebration Monday where it will revive its five-sided star logo, will be free of the short-term quarterly earnings pressures that public companies face, since there will be no Chrysler shares.

This is a riceburner free zone.

While I'm a Ford family and only buy Ford products, I always root for all of the Big 3. When the Big 3 does well, there's more jobs and more wealth in Michigan, especially East Michigan. I hope Chrysler does well, and hope to see a return of the days when the Big 3 dominated.


keithr said...

I always buy cars made by the "big 3" because the money gets plowed back into the Michigan economy. Foreign ompanies like Toyota may be building many of their cars in American facilities, but all the profit they make goes straight back to Japan.

Help support Michigan's economy by buying Michigan made products!

djtyg said...

You know we're both in agreement on wanting The Big 3 to do well, RM, but I don't see this working out well.

Cerebrus was the same company that was managing Walter Reed. They're a company that won't hesitate to downsize more workers to make their stock go up. said...

Although they did just out Lasorda and bring in the former head of Home Depot who'll be paid via performance.

So here's hoping, anyways.