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    NEW YORK (CNN) -- DaimlerChrysler has agreed to sell controlling interest of its Chrysler division to private equity firm Cerberus Capital Management for $7.4 billion, a statement from DaimlerChrysler Communications said Monday. In the deal, Cerberus will control about 80 percent the new company, Chrysler Holding, with DaimlerChrysler to retain the remaining 20 percent. "We are confident that this transaction will create a standalone Chrysler that is financially stronger, with a winning combination of people, industry know-how, operational expertise and spirit of innovation that will accelerate the company's recovery, and help us regain our position as a competitive industry leader," said Chrysler Group President and CEO Tom LaSorda. "With strong backing from Cerberus and a continued relationship with Daimler, Chrysler must demonstrate once and for all that we can win in this global marketplace. It is ours to win. And Chrysler has it in its DNA to do just that." LaSorda said there are no job cuts planned as part of the deal with Cerberus. United Auto Workers President Ron Gettelfinger said, "The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler." The unit was essentially put up for sale on February 14, when DaimlerChrysler Chairman and CEO Dieter Zetsche said Daimler would look at all options for the company, the same day he and Chrysler executives unveiled a turnaround plan that called for the automaker to close plants and cut 13,000 jobs, about 16 percent of its North American staff. When the merger was announced in May 1998, the value of the combined companies was estimated at $92 billion. "We are doing this merger because we share a passion for building great cars," Juergen Schrempp, the chairman of Daimler-Benz, said at the time, adding the new companies "bottom line focus will make it the most profitable auto company in the world." The Chrysler Group lost $1.5 billion last year. |
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