There were few modern business deals more mystifying to the gearhead universe than the purchase of Chrysler from Daimler by Cerberus Capital Management. The private equity firm jumped feet-first into the swimming pool of automotive manufacturing. Problem was, the pool was empty, and they dove headfirst into the concrete.
Cerberus management thought that they’d be able to do things the way they have done with their other acquisitions, but they were mistaken, almost from day one. The company was in worse shape than they thought once the ink dried on the sale paperwork, the economy was starting the puke in its mouth a little and the vehicle line-up did not include one compact car.
Dave Wallace tipped us off to a killer story on the deal at the New York Times website. These boys definitely bit off a hell of a lot more than they could chew.
