STEVE INSKEEP, host:
NPR's business news starts with the sale of the number three carmaker in Detroit.
(Soundbite of music)
INSKEEP: The German automaker known at the moment as DaimlerChrysler has found a buyer for most of the parts called Chrysler. A private equity firm called Cerberus Capital Management announced this morning that it will buy an 80-percent stake in the struggling Chrysler group.
NPR's Jack Speer reports.
JACK SPEER: The 1998 marriage of Daimler and Chrysler never really lived up to expectations. And now, nine years later, Daimler, which spent $36 billion for ht U.S. automaker, says it will sell its majority stake in Chrysler to the private equity firm Cerberus for %7.4 billion. Because of offsets and other moving parts of the deal, however, Daimler chairman Dieter Zetsche acknowledged getting out from under Chrysler will actually cost Daimler money in the near term.
Dr. DIETER ZETSCHE (Chairman, DaimlerChrysler): The transaction will result in a net cash outflow for DaimlerChrysler of (0.5 billion. Net profit, according to IRS(ph) in 2007, is likely to be reduced by (3 billion and (4billion.
SPEERS: Much of that is due to the $18 billion in pension and health care liabilities Chrysler carries. The sale is expected to close in the third quarter of this year. Jack Speer, NPR News.
NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.