Saturday, August 04, 2007

Chrysler officially goes private; CEO promises 'laserlike focus' |

Chrysler officially goes private; CEO promises 'laserlike focus' | "Chrysler became an American company again Friday as Cerberus Capital Management gained a controlling share from Chrysler's German owners and started on the long road to restoring the 82-year-old automaker's luster —- and profits.

DaimlerChrysler AG transferred an 80.1 percent stake in Chrysler to New York-based Cerberus, one of the world's largest private equity firms, in a $7.4 billion deal. The German automaker retained a 19.9 percent interest in the new company, Chrysler LLC.

'After months of uncertainty, then a period of transition, we are beginning a new chapter in Chrysler's proud history —- and we have the chance to write a terrific story,' Chrysler Chief Executive Tom LaSorda said in an e-mail to employees.

With the closing, Chrysler becomes the first U.S. automaker in private hands since Ford Motor Co. went public in 1956. Chrysler, which plans a companywide celebration Monday, during which it will revive its five-sided star logo, will be free of the short-term quarterly earnings pressures that public companies face, since there will be no Chrysler shares to be traded."

This will be interesting to watch. By the way, I was following a PT Cruiser the other day noticing the retro Chrysler logo and thinking, "I wonder if they'd ever bring back the old five-sided star logo?" Weird!


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