Cereberus is a hedge fund investment group that purchased Chrysler majority share for $7 billion up front from Daimler /Benz. This type of investment group is only in it for the money. A typical "efficiency" plan is to go into a company, sell of assets that are not immediately essential to raise cash, dump un-profitable products or services, cancel adverse contracts regardless of the local or overall impact, develop a balance sheet that shows about 20% gain in value above the purchase price...so that they can walk away richer than before.
Cereberus today finds itself standing in some deep yogurt. Daimler has said that the value of Chrysler stock as a functioning automaker is zero. Common consensus is that Chrysler should be parted out, with viable aspects, like Jeep, to be sold off to foreign automakers. Here is the zinger of the week...they might get the $7 billion bailout as requested. Also, the guidelines of how to use that money are recommended...not binding. There is nothing to prevent Cereberus investors from taking the $7 billion and walking away. What do you think they would do?
Related article:
Cereberus accountants are finding fraud in the Chrysler supply chain: tinyurl.com/4bz6k4
