The Freep reports that Chrysler bankruptcy judge Arthur Gonzalez has given creditors permission to sue Daimler for diverting $9 billion from the automaker two years ago. Gonzalez only put one restriction on the suit: creditors may not use government funds for the effort. According to the Freep report, the suit is being brought by “AutoNation Inc., the nation’s largest auto retailer; DARCARS Imports Inc., a Maryland-based dealer group, the UAW and two people with personal injury cases pending against Chrysler.” What we still don’t understand is exactly which “important assets” Daimler allegedly stripped, and how they were worth $9 billion. The allegations have apparently been redacted to the point that they are not identifiable, and Daimler asserts the claims are “without merit.” Since Daimler is already out over $37 billion on its Chrysler misadventure, it could be hard to prove that Daimler benefited from any aspect of the transaction.
6 Comments on “Chrysler Creditors Given Green Light to Sue Daimler...”
Back to TopLeave a Reply
You must be logged in to post a comment.
You can also login using Facebook Connect.
lol, thanks for bringing back memories of yet another lame Detroit marketing campaign….using Dieter as the new Joe Isuzu.
“creditors may not use government funds for the effort.”
They won’t continue, unless they can find a lawyer willing to front the work.
I’m more interested in the billions they diverted over 8 years ago from Chrysler. I don’t think Chrylser had 9 billion 2 years ago, unless they’re talking about the selling price to Cerberus, but, I thought that was for 7 bil and change. Color me confused.
When Daimler bought it, Chrysler had an exclusive, state-of-the-art cad/cam system that was not yet fully integrated with their assembly plants. That might have been one asset removed from the Chrysler sale, though I doubt that it alone would be worth $9 billion. There might have been other proprietary assets along a similar vein that Daimler kept when it sold out to Cerberus.
I could be wrong, but I would find it a bit odd if the judge would give a green light to such a suit if it were totally without merit.
I mean, they DO allow and even rule favorably when enviro fanatics file a totally frivilous\baseless lawsuit. But this is different, this is a bunch of evil greedy business types… Maybe it has something to do with the fact Daimler is foreign.
Sue Diamler? Wasn’t that Gottlieb’s wife?