Daimler ignores Iacocca, sells off Chrysler to Cerberus

[kostby]

The most interesting fact in the article is in the first sentence.Quote »Cerberus Capital Management, a private equity firm named after the three-headed hound that guarded the gates of hell in Greek mythology, got its start 15 years ago buying securities of distressed companies.Yes, folks, the 'buyout firm from hell' just increased their stake in Chrysler!Suppose they'll resurrect the Dodge Demon now??? Another interesting tidbitQuote »Most of Cerberus' cash will go into rebuilding Chrysler's auto production operations, not into the pocket of DaimlerChrysler AG (nyse: DCX - news - people ). The German-based maker of Mercedes-Benz autos was so anxious to get rid of its money-losing U.S. unit that it essentially agreed to kick in as much as $650 million in cash to unwind the controversial 1998 takeover of the parent company of Chrysler, Jeep and Dodge brands.Still, the deal represents a quantum jump in risk for New York-based Cerberus, which will now find itself on the hook for $19 billion in retiree health care costs at Chrysler, which has been losing market share to Asian competitors for years. Cha-ching!Link to full story at Forbes (actually an AP feed) --> http://www.forbes.com/feeds/ap....html

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[scott_h]

Wow - the company I work for was involved with Cerberus in buying Albertsons. (properties were split among our two companies along with CVS)

[Atomic]

A Google search:"Cerberus guarded the gate to Hades and ensured that spirits of the dead could enter, but none could exit (additionally no living person was to come into Hades). Among his siblings are his sister, Chimera and his brother, Hydra."So NO LIVING person can enter, and NO DEAD can ever leave.Exactly what does that say for (or about) Chrysler's relationship with their new owner?Think anyone at a Chrysler plant is concerned?

[ZubenElGenubi]

Why would any company name itself after the three-headed monster of Greek mythology is completely beyond me. OTOH, it doesn't seem to be hurting its business model.