Chrysler Group to Be Sold for $7.4 Billion
DaimlerChrysler confirmed today that it will sell a controlling interest in its struggling Chrysler Group to Cerberus Capital Management of New York, a private equity firm that specializes in restructuring troubled companies. The price being paid is $7.4 billion, mostly in the form of capital that Cerberus will put into Chrysler.
Cerberus will take an 80.1% equity position in Chrysler and related financial services business. Daimler will retain the remaining 19.9%. The new “Chrysler Holding” will be privately owned.