Chrysler Group sold to Cerberus

DaimlerChrysler AG has announced that it is selling 80.1 percent of the Chrysler Group for $7.4 billion to Cerberus Capital Management LP, a private equity firm. Daimler Chrysler will keep 19.9 percent. The deal is expected to be completed by the third quarter.

Chrysler reportedly will keep its pension and health care cost obligations.

Tom LaSorda, president and CEO, Chrysler Corporation LLC, said, "We are confident that this transaction will create a standalone Chrysler that is financially stronger, with a winning combination of people, industry know-how, operational expertise and spirit of innovation that will accelerate the company's recovery, and help us regain our position as a competitive industry leader.

"Cerberus is the right strategic buyer for Chrysler, with a long-term commitment to Chrysler's growth and success. They are committed to working constructively with both union leadership and Chrysler's management team to help Chrysler realize its full potential. There are no new job cuts planned in connection with this transaction announced today.

"As a private company, Chrysler will be better positioned to focus on its long-term plan for recovery, rather than just short-term results. It will allow Chrysler to renew its focus on what has always made us special - our passion, creativity and commitment to delivering exciting Chrysler, Jeep and Dodge vehicles and quality Mopar parts to our customers, along with unparalleled customer service.

"With strong backing from Cerberus and a continued relationship with Daimler, Chrysler must demonstrate once and for all that we can win in this global marketplace. It is ours to win. And Chrysler has it in its DNA to do just that."