BBC News reports that German carmaker Daimler has reached a deal to give up its 19.9% stake in Chrysler, the company has said. The deal, which will also see Daimler forgive Chrysler’s outstanding loans, marks a definitive separation of the German and US firms, Daimler said.
Daimler bought Chrysler in 1998 but sold most of the loss-making unit to Cerberus Capital Management in 2007.
Earlier, Chrysler announced a cost-cutting deal with its main US union as it tries to restructure its business.
The struggling Detroit carmaker has until 30 April to complete its restructuring in order to gain further state loans, without which it may have to enter bankruptcy protection.
Chrysler has already received a $4bn loan from the US government. Full story…