Just when the things are extremely dark for GM, Chrysler, the cross-town competitor is having lots of luck. After getting unions finally in the U.S. and Canada for agreeing to concessions, Daimler â€“ which is the ex owner of Chrysler â€“ agreed to hand over all its piece of the Michigan carmaker.
The press release says Daimler reached finally an agreement on Monday with Cerberus Capital Management, U.S. Pension Benefit Guaranty Corp. and Chrysler to shed the 19.9 % piece in the ailing carmaker. Daimler, from 1998 right until 2007, owned Chrysler, retaining a 19.9 percent minority, since its sale, in the firm.
The agreement terms will forgo also any loans, this due to Daimler up from Chrysler written off for the previous fiscal year. So, Daimler will contribute also with 200 million Dollars per year to the pension plan of Chrysler from this year to 2011, per the agreement terms.
Daimler wants to end the Chrysler relationship for a few months, but could not find any common ground having the present owner Cerberus. With the viability deadline from the government just 3 days away, apparently a fire, under all those parties involved, was lit. Daimler's loss is a small cost to pay, considering its share value of Chrysler at 0 Dollars, a far cry coming from its value in 2007 of over 2 billion Dollars.
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