Many conflicting reports are emerging on the web regarding Chrysler's new and unexpected owner. Cerberus Capital Management, a private equity firm headed by Kerkorian, is likely to be the winning bidder. The Detroit News is reporting that the firm has been already chosen as the new owner, whilst Reuters and The Wall Street Journal doesn't confirm. The final decision will be announced on Monday.
Daimler-Chrysler put the Chrysler brand up for bids quoting that "the brand is out for all options." In February, Chrysler reported a $1.5 billion loss and a restructuring plan that would cost 13,000 jobs.
Reports suggest Tom LaSorda, current chief of Chrysler, is likely staying and Wolfgang Bernhard will also find himself a board position. David Cole, chairman for the Center of Automotive Research stated that a private-equity buyer is the "worst nightmare" for the UAW.
[Source: Motor Authority via The Wall Street Journal]
Sunday, May 13, 2007
Almost Official: Cerberus most likely to be new Chrysler buyer
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