An affiliate of US private investment firm Cerberus has acquired an 80.1% majority interest in the Chrysler Group from Germany’s DaimlerChrysler for €5.5 billion ($7.4 billion). DaimlerChrysler will retain a 19.9% interest in the new company, Chrysler Holding LLC, which will hold 100% of the future Chrysler Corporation LLC, which will produce Chrysler, Dodge and Jeep vehicles, and the future Chrysler Financial Services LLC, which will provide financial services for these vehicles in the NAFTA region.

Of the total capital contribution of €5.5 billion, €3.7 billion will flow into the industrial business and €0.8 billion will flow into the financial services business. DaimlerChrysler will receive the balance of €1 billion. In addition, DaimlerChrysler will grant a loan of €0.3 billion to the new company.

Due to the new corporate structure, the name DaimlerChrysler AG will be changed to Daimler AG.