Daimler reduces its stake in Chrysler by two-thirds

After Daimler sold its majority control in Chrysler to Cerberus Capital Management in August 2007, it retained a 19.9 percent stake in the American automaker. However, Daimler has now reduced its stake in Chrysler by almost two-thirds after Chrysler made a 340 million euro punch to Daimler’s pretax profits in the first quarter of 2008.

According to Wall Street Journal, Daimler now values its stake at 547 million euros, down from the original 1.4 billion euros when it sold Chrysler to Cerberus.

In response to Daimler, Chrysler said that it has “enjoyed positive operating earnings” under Cerberus control. The U.S. automakers said that under U.S. accounting rules, Chrysler’s financial results are ‘substantially better’ than the international standard used by Daimler.


Source: Automotive News (Subscription Required)

[tags]Cars, Car, Auto, Automobile, Vehicles, Technology, Auto News, News, Automotive, Daimler, Chrysler[/tags]