Daimler AG is looking to divest itself of its stake in Chrysler.
After selling off control of Chrysler to Cerberus Capital Management in 2007, Daimler retained a 19.9 percent stake in the US automaker. But now, the company wants to sell off its remaining share of the troubled automaker.
"We are still trying to divest our 19.9 percent stake in Chrysler," said a Daimler spokesperson.
On Tuesday, Chrysler and Fiat announced an alliance in which Fiat would take a 35 percent stake in Chrysler in return for investments in retooling a Chrysler plant in the US to produce Fiat models for the US market. It is not clear if those models will be badged as Fiats or will come branded as Chryslers.
According to details of the deal, Fiat may receive its 35 percent stake by the middle of the year. The deal also provides the option for Fiat to increase its stake to 55 percent at a later date.
The Daimler spokesperson commented on the Fiat-Chrysler alliance: "We welcome any initiative that serves to stabilize the situation at Chrysler and preserve jobs at the company."
sub39h
January 21, 2009 1:48 AM
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