Daimler to Unload Remaining Chrysler Stake.

[hawk20]

Daimler to Unload Remaining Chrysler Stake

Daimler are in negotiations to sell off their remaining near 20% stake in ailing Chrysler Group.
http://news.bbc.co.uk/1/hi/business/7634616.stm

And here’s a really interesting article on Chrysler: -
http://news.bbc.co.uk/1/hi/business/7186915.stm

 

[grober]

Interesting news indeed, but you wonder where Cerberus will get the money from in today's fiscal climate? Probably not the USA for sure. I'm looking towards the Far East while I am saying this by the way.

 

[hawk20]

Indeed. And I am surprised there is anyone prepared to talk about buying because of the long-term pension and healthcare costs.

Chrysler have more retired people, and people made redundant in the past, claiming pensions and healthcare than the number of people they currently employ. A real ouch! I should think that is one good reason why MB want to sever all ownership links.

 

[Mudster]

The thing is, the economic climate we find ourself in now might be the savior of deals like this.

As this situations worsens, the deals and arrangements being allowed to slip through the ethical and moral net nevermind monopolies (HBOS - LLoydsTSB) is an eyeopener.

Chrysler is not in good shape, if allowed to wallow on in it's own way it will eventually fold..therefore the pensioners etc will get nothing.

This puts any potential buyer in a good position to barter with the dependents of the company....they'll buy them out at a reduction of benefits, the alternative is you get nothing when it goes bust......

 

[hawk20]

The thing is, the economic climate we find ourself in now might be the savior of deals like this.

As this situations worsens, the deals and arrangements being allowed to slip through the ethical and moral net nevermind monopolies (HBOS - LLoydsTSB) is an eyeopener.

Chrysler is not in good shape, if allowed to wallow on in it's own way it will eventually fold..therefore the pensioners etc will get nothing.

This puts any potential buyer in a good position to barter with the dependents of the company....they'll buy them out at a reduction of benefits, the alternative is you get nothing when it goes bust......

I agree. Makes sense. But so far the US car unions have been very reluctant to do any deals however bad the situation financially. Ford and GM have both tried and made little progress. But as you say, a new owner can say we do a deal or it folds.

 

[Defiant]

Before you can sell something, don't you need to have someone who'll buy it?

 

[hawk20]

Before you can sell something, don't you need to have someone who'll buy it?

Yes indeed. That could be a problem.