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Cerberus To Daimler: Let's Go Our Separate Ways

Cerberus Capital Management, Chrysler's majority owner, wants to buy out Daimler AG's remaining stake to clear the way for it to seek closer alliances with other car companies.

Daimler bought Chrysler in 1998 in a $36 billion "merger of equals" that sparked a flurry of automotive tie-ups, many of which proved unsuccessful. Cerberus acquired 80.1% of Chrysler a year ago. Daimler's remaining stake has emerged as a stumbling block for automakers interested in forming a global alliance with Chrysler. It is unclear whether Chrysler has any potential partners prepared to engage in talks.

While we're on the subject of once-promising automotive relationships gone sour, the Detroit Free-Press reports that General Motors will distribute marketing materials next month for the sale of its Hummer brand (and a French transmission plant) as part of its previously announced plan to get in fiscal trim.

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