It didn't take long for the news to hit the mass media: Private equity firm Cerberus Capital Management is purchasing a controlling stake in the Chrysler division of DaimlerChrysler, which is selling 80 percent of the Chrysler Group for $7.4 billion. The financial genius' at Daimler purchased Chrysler for $36 billion in 1998.

The following is a summary of the deal from DaimlerChrysler's website:

• Affiliate of Cerberus to acquire 80.1% equity interest in new company Chrysler Holding LLC; DaimlerChrysler AG to retain 19.9%
• Obligations for pensions and healthcare costs to be retained by Chrysler companies
• Transaction expected to result in net cash outflow of EUR 0.5 billion for DaimlerChrysler
• DaimlerChrysler’s net profit according to IFRS in 2007 to be reduced in a range of EUR 3-4 billion
• Equity ratio of DaimlerChrysler’s industrial business is expected to be over 40% by the beginning of 2008
• Extraordinary Shareholders’ Meeting to decide on change of name to Daimler AG
• DaimlerChrysler CEO Dieter Zetsche on the realignment of DaimlerChrysler AG: "We will be the leading manufacturer of premium vehicles and a provider of premium services in every market segment we serve worldwide."
• UAW President Ron Gettelfinger: "The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler."
• Cerberus Capital Management Chairman John Snow: "Cerberus believes in the inherent strength of U.S. manufacturing and of the U.S. auto industry. Most importantly, we believe in Chrysler."

More info is available at DaimlerChrysler.com here.

Here's an excerpt of the press release. You can read the full press release over at CARSCOOP.

DaimlerChrysler: An incident, in which nobody got injured, occurred during the DTM presentation programme at Düsseldorf’s Königsallee. The rear of a former DTM race car (Mercedes-Benz CLK-DTM from the year 2002), driven by Bruno Spengler, caught fire due to an overheated brake. The car was a five-year-old race car that had been fitted with the bodywork of the new C-Class for demonstration runs.

Here's the video from YouTube (Warning: the video includes an MP3/music overlay that's not rated G; turn your sound off if you prefer):

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According to the information WestLB provided, these are purely financial transactions, which are completely hedged with futures. The number of DaimlerChrysler shares held by WestLB is to be reduced again to well below 3% of the capital stock in the foreseeable future. The transactions therefore do not result in any shift in DaimlerChrysler’s shareholder structure. 

A special AMG performance package will be available in March 2007 ex factory for the E63 AMG Saloon. The package, priced at 7,140 euros, includes various technical components that enhance the handling dynamics and the vehicles motorsport potential. It was developed for those interested in driving on closed-circuit racetracks.

The AMG Performance Studio in Affalterbach developed the package, the vehicles are built at the DaimlerChrysler production plant in Sindelfingen.

• 18-inch 5-spoke multi-piece AMG alloy wheels, painted titanium silver, front wheels size 8.5 x 18 with 245/40 R 18 tires, rear wheels size 9.5 x 18 with 265/35 R 18 tires
• AMG performance suspension with firmer tuning, based on AIRMATIC DC
• Multi-disc rear locking differential with 40% locking effect, providing more traction when accelerating out of corners
• AMG ergonomic sports steering wheel in leather/black Alcantara with silver-colored aluminum shift paddles

AMG Optional Extras Available Ex Factory

For the SLK 55 AMG, SL 55 AMG, E 63 AMG, CLS 63 AMG and CLK 63 AMG models, exclusive individual optional extras from the AMG Performance Studio are now for the first time also available ex factory.

SLK 55 AMG

• 18-inch twin-spoke AMG light-alloy wheels, multi-piece
• AMG performance suspension
• AMG carbon trim parts
• Velour floor mats with AMG lettering

SL 55 AMG

• 19-inch twin-spoke AMG light-alloy wheels, multi-piece
• Velour floor mats with AMG lettering

E 63 AMG Saloon and Estate

• 18-inch five-spoke AMG light-alloy wheels, multi-piece
• AMG performance suspension, based on AIRMATIC DC (only for saloon)
• AMG rear locking differential
• Velour floor mats with AMG lettering

CLS 63 AMG

• 19-inch five-spoke AMG light-alloy wheels, multi-piece
• AMG performance suspension, based on AIRMATIC DC
• AMG rear locking differential
• Velour floor mats with AMG lettering

CLK 63 AMG

• Velour floor mats with AMG lettering