Daimler Values Chrysler Stake at Zilch. Nothing. $0
You may recall that Daimler maintained a minority share of Chrysler when it sold the American automaker to Cerberus. About a year ago, ChryCo’s German “partner” (and author of the abortive DaimlerChrysler “merger of equals”) valued its 19.9 percent Chrysler stake at $2.2b. At the end of June, the number slid to a scarecely creditable $268m. And now The Detroit Free Press says Daimler believes that its ChyrCo position is without any financial value whatsoever. Which should make Cerberus’ negotiating position re: buying back that stake so it can “sell” the whole kit and caboodle to GM, or just C7 Chrysler, a little easier. But in fact, it’s important to note that Chrysler has long-term liabilities to its unionized workforce, and lots of ‘um. Billions of dollars worth. If/when Chrysler goes Tango Uniform, you can bet the United Auto Workers, jilted suppliers and other debtors will come knocking on Daimler’s door. So I’m thinking Daimler may have to pay Cerberus to rid themselves of this troublesome man. Watch this space.