DaimlerChrysler AG (ISIN: DE0007100000) is a German car corporation and the world's fifth largest car manufacturer. As well as automobiles, DaimlerChrysler manufactures trucks and provides financial services through its DaimlerChrysler Financial Services arm. The company also owns a major stake in aerospace group EADS.
DaimlerChrysler was formed in 1998 when Mercedes-Benz manufacturer Daimler-Benz of Stuttgart, Germany merged with US-based Chrysler Corporation. However, the merger failed to produce the trans-Atlantic automotive powerhouse dealmakers had hoped for, and DaimlerChrysler announced on 14 May 2007 that it would sell Chrysler to Cerberus Capital Management of New York, a private equity firm that specializes in restructuring troubled companies, effectively unwinding the original transaction. The US company adopted the name Chrysler Holding LLC when the sale completed on 3 August 2007.
DaimlerChrysler produces cars and trucks under the brands of Mercedes-Benz, Maybach, Smart, Freightliner, GEM and many others.
DaimlerChrysler was reportedly in negotiations with other carmakers and investment groups since early 2007 to sell Chrysler. General Motors was reported to be a suitor while Volkswagen, the Renault-Nissan auto alliance, and Hyundai Motor Company had said that they weren't interested in buying the company.
On August 3, 2007, DaimlerChysler completed the sale of Chrysler Group to Cerberus Capital Management. The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler will change its name to Daimler AG and retain the remaining 19.9% stake in the separated Chrysler.
The terms will see Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. This is a remarkable reverse in fortunes on the US$36 billion paid to acquire Chrysler in 1998. Of the US$7.4 billion, purchase price, Cerberus Capital Management will invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler's financial unit. The de-merged Daimler AG will receive US$1.35 billion directly from Cerberus but will invest US$2 billion in Chrysler itself.
Sale of Chrysler
Dieter Zetsche has been the Chairman of DaimlerChrysler and the President and CEO of Mercedes Car Group since January 1, 2006. The former President and CEO of the Chrysler Group, he is best known in the United States as Dr. Z from a Chrysler advertising campaign.
Current members of the supervisory board of DaimlerChrysler are: Heinrich Flegel, Nate Gooden, Earl Graves, Thomas Klebe, Erich Klemm, Hilmar Kopper, Arnaud Lagardère, Jürgen Langer, Robert Lanigan, Helmut Lense, Peter Magowan, William Owens, Gerd Rheude, Udo Richter, Wolf Röder, Manfred Schneider, Stefan Schwaab, Bernhard Walter, Lynton Wilson, and Mark Wössner.
The largest voting shareholder DaimlerChrysler is the State of Kuwait, with 7.1% (as at 31 December 2006). Deutsche Bank, with 4.35% (as at 2 May 2007). United Arab Emirates, with 2.0% (as at 31 December 2005).
30.9% Other Europe
8.3% Rest of world DaimlerChrysler shareholders
DaimlerChrysler sells automobiles under the following marques worldwide:
Mercedes Car Group
Commercial Vehicle Brands
- Thomas Built Buses
Mercedes-Benz (truck group)
Orion Bus Industries
Global Electric Motorcars (GEM)
- DaimlerChrysler Financial Services
- Thomas Built Buses