AFSCME 3357-HOF'S BLOG

Cerebus to Buy Chrysler

About 9:00 PM last night (Sunday) the news flash went out that there was a deal to buy Chrysler. It was confirmed this morning. DCX issued a press release that Cerebus was going to buy 80.1% of the Chrysler division for $7.4 billion, a price that was on the higher end of the speculated value. Contrary to early reports, including in the Wall Street Journal, DCX will be retaining pension obligations, and the deal has the blessings of the UAW. Complete coverage is available on the Detroit News website, www.detnews.com.

Chrysler workers have to feel like a mail-order Russian bride, they're heading off to a new land, and they have no way of knowing whether the new spouse will be true love, or a drunken wife-beater. Of course, it has to be encouraging that Cerebus Capital Management was named after Cerebus, the three-headed dog who guards the gates of hell.

I'll try to post a follow-up late this evening.