Subject: Re: [MB] Chrysler "Sold" DCAG just announced that it will sell Chrysler to an investment firm, Cerberus, for $7.5 billion. The deal is complicated, as DCAG (to be renamed Daimler AG--whatever happened to Benz?) will keep a 19.9-percent interest and loan money back to Chrysler Holdings, a subsidiary of Cerberus. This isn't the deal that the unions wanted, but they didn't get their employee ownership dealtogether fast enough. The net of the deal seems to be that nobody gets much significant money, but Cerberus will end up being able to ditch some of Chrysler's money-losing operations, and Daimler can go its merry way building Mercedes-Benzes again.
> -----Original Message----- > From: @mbusi.daimlerchrysler.com > Sent: Monday, May 14, 2007 9:13 AM > To: undisclosed-recipients: > Subject: Fw: Zur Neuausrichtung von DaimlerChrysler / Re > Realignment of > DaimlerChrysler > > > From Dr. Z: > > Dear Colleagues, > > this afternoon in Stuttgart we will present to the public our > concept for > the future of Daimler and Chrysler. > > Following a broad strategic review, we have decided to sell a majority > interest in the Chrysler Group and its related financial services > business > to Cerberus. This decision was not easy to make - and it was > particularly > difficult for me personally. But from an objective point of view, > it is the > right thing to do. > > We will retain an equity interest of 19.9% in Chrysler, in part to > secure > the continuity of our common projects. As trusted business partners, > Mercedes and Chrysler will continue to take advantage of > collaborative work > in the future. To do so we do not need to be an integrated company. > > We are convinced that we have found the best solution for Chrysler > and its > employees; one that will ensure the long-term viability of the > company. > With the new ownership structure, Chrysler will have more > flexibility and > will be ideally positioned to implement its comprehensive Recovery and > Transformation Plan and to sharply focus on its target markets and > segments. > > Daimler will also benefit from the new concept: We will fully focus > our > company on manufacturing and marketing premium products and delivering > premium services in all of our businesses worldwide. That is our > traditional strength. It's also where we have the best > opportunities for > sustained and profitable growth. At the same time, we'll > substantially > reduce our dependence on the volatile volume market segments in the > U.S.. > > To reflect this new alignment of our business, we will change our > company's > name. We will call an Extraordinary Shareholders' Meeting and > propose that > we do business in the future as "Daimler AG". > > The Board of Management will be scaled down from nine to six > members. Tom > LaSorda, Eric Ridenour and Tom Sidlik will leave the Board of > Management by > amicable agreement. There will no longer be a separate board > position for > procurement; Bodo Uebber will assume these duties in addition to > his other > responsibilities. > > The leadership teams of the Mercedes Car Group, the Truck Group and > Financial Services will remain unchanged, as will the teams in the > vans and > buses businesses. All of these businesses will continue as integral > parts > of our company. > > The new Daimler AG is well positioned for the future. In all of our > divisions - the Mercedes Car Group, the Truck Group and Financial > Services > - we have the right organizations and strategies, which you are > implementing with positive results. > > We have set clear and ambitious goals for the future: > > - We want to be the world's leading manufacturer of premium > passenger cars > and commercial vehicles. > - We want to fully focus on the needs of our customers and inspire > them > with fascinating products and strong, unique brands. > - We want to offer the best service and first-class, customer-oriented > financial services. > - And we want to live a culture of excellence, ensuring sustained and > profitable growth. > > We are convinced that together, we have the innovative power and the > pioneering spirit to achieve these goals. Our company invented the > automobile. Today, in Mercedes we have the strongest automotive > brand in > the world linking our businesses. And last but not least, we have > in all of > you the right team to deliver top performance. > > With our new organization, we can now focus all of our attention and > efforts on the tasks ahead of us, to bring Daimler AG where it > belongs - at > the top of the auto industry. My colleagues and I look forward to > traveling > this road together with you. > > Sincerely, > > Dieter Zetsche ************************************** See what's free at http://www.aol.com.
