DaimlerChrysler was founded in 1998 when Mercedes-Benz manufacturer Daimler-Benz of Stuttgart, Germany bought the US-based Chrysler Corporation. The deal created a new entity, DaimlerChrysler. However, the buyout failed to produce the trans-Atlantic automotive powerhouse deal makers had hoped for, and DaimlerChrysler announced on 14 May 2007, that it would sell Chrysler to Cerberus Capital Management of New York. On August 3, 2007, DaimlerChysler completed the sale of Chrysler Group to Cerberus Capital Management.
Daimler produces cars and trucks under the brands of Mercedes-Benz, Maybach, Smart, Freightliner and many others.
Profits declined 14 percent in its second quarter amid the sale of Chrysler. Daimler is
taking a $3.38 billion charge from transferring 80.1 percent of Chrysler to private-equity firm Cerberus Capital Management for more than $7 billion.
New Daimler cars now account for just over half of revenues; trucks, vans and buses for one-third; and the lucrative financial-services unit represents the rest. The company employs about 375,000 people worldwide.
The company expects improved cash flow and a better balance sheet, thanks in part to shedding the $20 billion in Chrysler post-retirement health-care liabilities. Meanwhile, the new generation of Mercedes C-Class sedans, the company's best-seller, should help this year's bottom line.
At the end of 2007 with the formal announcement coming in March of the following, India's Tata Group had completed arrangements to purchase Jaguar and Daimler.
The Daimler Company Limited is now The Daimler Motor Company Limited.