The largest employer in Belvidere and the stateline is getting a new boss. A private financial group has purchased the majority of Chrysler from Dailmler Chrysler.
Vehicle sales have been down while pressure from shareholders, particularly in Europe, to sell is up. Now, the world's 3rd largest automaker is saying goodbye to it's money-losing Chrysler unit, selling it to New York equity company Cerberus for 7.4 billion dollars. That's just a fraction of the 37 billion is shelled out for Chrysler back in 1998.
This news comes after about 2 months of negotiations with multiple companies interested in taking over Chrysler's lagging US operations. What it means is the 9 year cross Atlantic partnership between DaimlerChryser and it's Chrysler Unit has come to an end. Now Chrysler Automotive Group will switch to Chrysler Holding LLC.
The new leaders are Cerberus Capital Management. It's a private equity firm founded in 1992. What they do is invest in troubled companies, nearing bankruptcy hoping to make them more profitable but the transition won't be easy.
Cerberus faces the same challenges Daimler had, soaring labor, health care, and pension costs.