Daimler’s 19.9 percent stake in Chrysler LLC that was worth $1.17 billion at the end of 2007 is now worth zero. According to Daimler CEO Dieter Zetsche the value of zero “is a function of accounting.” There is no reason for the drop in the value of its Chrysler stake besides the way the Germans handle their accounting.
Daimler said that it lost a total of $450 million in Chrysler in its third-quarter results. In August 2007, Daimler sold 80.1 percent of its Chrysler stake to Cerberus for $7.4 billion. Chrysler down not disclose its financial results as it is a private company. However, it said that the $450 million loss reported by Daimler would translate into $113 million loss under GAAP accounting standards.
Daimler is no finishing up transferring the rest of its stake to Chrysler and says that the only thing it can say right now is that the two are in talks to get the deal done as soon as possible.
Source: Detroit News