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Cerberus on Friday closed its $7.4 billion purchase of a 80% stake in the automaker from DaimlerChrysler AG. The deal, announced in May, unwinds a disastrous $36 billion trans-Atlantic merger struck in 1998. With the entire domestic industry struggling under the weight of high costs and foreign competition, many auto execs are eager to see what fresh ideas a private equity owner might inject. Former U.S. Treasury Secretary and current Cerberus chairman John Snow told Congress last month that his firm has a “five year or faster” turnaround plan for Chrysler. Wolfgang Bernhard, a former Chrysler executive who is now a senior adviser to Cerberus, is expected to be named the company’s chairman. Bernhard, according to the Detroit News, has already made his presence felt inside the company, killing the planned relaunch of its fabled Imperial luxury sedan and "poring over product plans, brainstorming with executives, checking on even routine events like press previews for the minivan launch." Bernhard is expected to push for a design resurgence at Chrysler, hoping to recapture the progress made during the early years under German control when the brand made sales gains thanks to eye-turning vehicles that helped boost its image. Longer term, Cerberus is expected to increase Chrysler’s overseas ties. The automaker is already committed to selling Chinese-made compacts in the U.S., and according to reports, could strengthen an alliance with Hyundai Motor Co. and look to Russian partners for growth. Chrysler currently sells about 90% of its production volume in ultra-competitive North America. The domestic automakers are also hoping Cerberus can strike a precedent-setting cost-cutting accord with the United Auto Workers, which would assist them in their own efforts to bring down labor costs. Those talks are expected to heat up in the weeks to come. —Lou Whiteman See Daimler's announcement that the deal has closed Tags: Chrysler, Cerberus Capital, acquisition, deals, m&a, mergers, private equity CategoriesPrivate capital video
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With the handover of Chrysler Group from the Germans to private equity complete, all eyes in the industry are watching what Cerberus Capital Management LP has planned for the struggling Detroit automaker. 
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