下载

This was the company the merger was Daimler about 9 years ago hasn't been overly successful, the company paid more than 30 billion dollars back then. this deal was 7.4 billion dollars for 80% of the company. In effect, Chrysler is coming home the name will change, Daimler Chrysler will change back to Daimler AG and, and in some sense that savings can be achieved and Chrysler can get back on a road to health. Here in the United States, even the unions are supporting this deal, there's been a number of suitors about two months ago on Valentine's day Daimler Chrysler had announced there was, there was looking for a buyer for Chrysler. This deal has been done. It's the frist time a deal of the sides has been done, where a private equity firm, a firm that doesn't have to report to shareholders in any public way is taking over something is major as a, as a big car company like this but there some sense as the sunrises here in O*. This might actually be a new future for Chrysler. Chrysler is a company that it is still heavily dependent on its track unit and while it hasn't done is badly overtime is the other Detroit-based automakers. The delayed reponse in, in * will announce earlier this year indicated the Chrysler is in trouble. It's bleeding money and needs to have a better outcome. Unclear yet, how it's going to change the CEO and president Tom S under this agreement is staying honestly for sometime and there're no further job cuts 30,000 job cuts were announced earlier this year. But the sense around here is that this new leadership at Chrysler might be what it needs to turn it around. Chrysler is coming home to the United States again. Daimler Chrysler will become Daimler and this will become Chrysler holding its corporation. Tod.

Ali, * where you know, private equity firms, they'll tend to take a long term view, they're trying restructure and then sell it onto somebody else. Er, there is a lot of fear in it you say, the union is welcome this because they * past, there is lot fear about b* what that mean, might mean for jobs. Here my question is you know, my question is what can they do that hasn't been done because you know, you have a structure or problem here in the sense that the Japanese automakers just that much more efficient the sense, they have the cars that, that Americans want. So why does this private equity firm think they can accomplish but Chrysler hasn't been able to accomplish?

Yeah, you pop the question there, there are three things that the Japanese automakers have one at least they got the cars that Americans buying to. If they don't have those legacy cars, the health-care cars that the US automakers are settling within, Chrysler was the case about 19 billion dollars worth of liability. And they have price advantage because there are not unionized steps, depending on how you calculate it, it could be 30 bucks an hour, that is the price advantage. How...where do these savings come from it's unclear. In Tom S words the president CEO of Chrysler he says Chrysler will be better positioned to focus on its long term plan for recovery rather than just short term results. I r* what he means is that the short term results that sharesholders look at, the cor* results that haven't been showing from Chrysler. They are thinking service is going to be able to take a longer term view that you're right. These private equity firms are looking for the longest term view where they maybe able to take something more than a quarterly view allowing to turn it surround. This is what these private equity firms do as you said, they buy this company, they turn them around and they get ready of it. There is no sense that the private equity firms are looking to be in the car business for any long here at the time.