Daimler actually paying $700 million to dump Chrysler.

[Dr.Phool]

I suspect that the employees and retirees are gonna get screwed royally in this deal. Former Treasury Sec. John Snow Heads Cerberus. Dan Quayle is involved.

This smells like a Frank Lorenzo style deal to me.

http://money.cnn.com/2007/05/14/news/companies/chrysler_sale/index.htm?cnn=yes

Daimler pays to dump Chrysler
German automaker will end up actually paying $700 million to unload Chrysler ending its exposure to billions in ongoing losses, healthcare costs.
By Chris Isidore, CNNMoney.com senior writer
May 14 2007: 11:16 AM EDT

NEW YORK (CNNMoney.com) -- DaimlerChrysler moved to undo the most expensive and one of the least successful mergers in auto industry history Monday as it agreed to essentially pay to dump the money-losing Chrysler unit which it paid $37 billion for nine years ago.




But the German automaker, which will be renamed simply Daimler, will not actually get most of the money that Cerberus is paying for the once proud automaker. Instead Cerberus will contribute $5 billion to the Chrysler auto operations it will now control, with just over another $1 billion going to Chrysler's finance arm.

While Daimler will receive the remaining $1.4 billion of Cerberus' capital contribution to the sale, Daimler expects to have to cover another $1.6 billion in Chrysler losses before the deal closes. So Daimler estimates that it will end up paying out almost $700 million to close the deal, and that its earnings for 2007 will take a $4 billion to $5.4 billion profit hit due to charges related to the transaction.

(snip)

[AndyA]

1. Anyone wanna bet that the CEO of Daimler somehow manages to get a

multi-million dollar bonus from this? After all, he saved the company billions by unloading Chrysler at a loss, right?

I'm gonna :puke: if this guy gets anything other than a kick in the ass from Daimler.