FRANKFURT, Germany -- DaimlerChrysler said it will sell more than 80 percent of its money losing Chrysler Group to private equity firm Cerberus Capital Management.
The German-American automaker said in a statement on Monday that an affiliate of Cerberus will acquire the new Chrysler Holding LLC but DaimlerChrysler will keep nearly a 20 percent stake.
Obligations for pensions and health care costs will be retained by the Chrysler companies.
A change of name for the company has not been decided upon.
Chrysler lost $1.5 billion last year and is undergoing a restructuring plan that will eventually shed 13,000 jobs.
The deal is likely to be complete by the third quarter.
United Autoworkers President Ron Gettelfinger said the deal is in the best interests of union workers, the Chrysler Group and Daimler.
The German-American automaker said in a statement on Monday that an affiliate of Cerberus will acquire the new Chrysler Holding LLC but DaimlerChrysler will keep nearly a 20 percent stake.
Obligations for pensions and health care costs will be retained by the Chrysler companies.
A change of name for the company has not been decided upon.
Chrysler lost $1.5 billion last year and is undergoing a restructuring plan that will eventually shed 13,000 jobs.
The deal is likely to be complete by the third quarter.
United Autoworkers President Ron Gettelfinger said the deal is in the best interests of union workers, the Chrysler Group and Daimler.