Chrysler

DETROIT--After announcing a plan to sell a major U.S. automaker to a private equity firm, officials with DaimlerChrysler AG and buyer Cerberus Capital Management took extraordinary pains yesterday to reassure workers and the public that the Chrysler of the future would be kept whole. No job cuts are planned beyond those announced in a February reorganization, said Chrysler Chief Executive Officer -RDThomas W. LaSorda, who was praised by the new buyers and is expected to remain in charge of the maker of Dodge Ram pickups and Chrysler 300 sedans.

Chrysler Corp., in the midst of a financial recovery after three years of weak performance, reported its best results in four years yesterday, posting profits for 1992's fourth quarter and for the full year.The improvement stemmed from the recovering economy and the successful introduction in the last year of new models with hefty profit margins. Chrysler's restyled minivan has been well-received, as have the new Jeep Grand Cherokee sport utility vehicle and three midsize sedans, the Eagle Vision, Dodge Intrepid and Chrysler Concorde.

WASHINGTON - -In a surprise move, the U.S. Supreme Court ordered a temporary delay Monday in the bankruptcy sale of Chrysler to Italian automaker Fiat, saying it needed more time to decide on complaints that the government-engineered deal is unfair to some bondholders. The one-line order from Justice Ruth Bader Ginsburg raised the possibility that the court could halt the sale and force the Chrysler deal to be renegotiated. Such a move could complicate the much larger General Motors bankruptcy.

DETROIT -- Ford Motor Co. and Chrysler Corp., the nation's No. 2 and No. 3 automakers respectively, reported yesterday strong second-quarter earnings that reflected a sales rebound driven by pent-up demand, low interest rates and incentives.The earnings -- $775 million for Ford and $685 million for Chrysler -- were higher than most analysts expected. General Motors Corp., which will report on its performance today, also is expected to show a sizable profit.The improvement comes after three years of financial difficulties for the Big Three -- and in spite of a slump in consumer confidence and sluggish economic growth overall.

Ford and Chrysler have increased the efficiency of their factories and workers so much in recent years that their basic cost of producing a car is now less than that of their Japanese rivals, according to a study published yesterday.Analysts have long recognized productivity improvements at Ford Motor Co. and Chrysler Corp. But the assumption in the industry has been that a production-cost gap remains between the second- and third-largest automakers in Detroit and the Japanese companies, especially Toyota Motor Corp.

DETROIT -- After a tremendous run-up, shares of DaimlerChrysler AG may have peaked yesterday, as traders appear to have decided that selling Chrysler was fun, but now it's time to cash out and sell those shares. Just three months ago, on Feb. 13, the day before DaimlerChrysler AG first hinted the Chrysler Group might be sold, the stock opened at $63.94. Now that a deal has been announced for private equity firm Cerberus Capital Management to acquire Chrysler, DaimlerChrysler's shares are going for more than $86 - a 34 percent increase in just three months.

NEW YORK -- In the second-largest stock sale ever, Chrysler Corp. raised $1.78 billion late yesterday, aided by a sharp surge in its stock price over the past year.Through underwriters led by First Boston Corp., Chrysler sold 46 million shares at $38.75 each, according to sources on Wall Street, who spoke on condition of anonymity.Signs of strong demand for the new shares were manifest. The issue was 6 million shares larger than Chrysler had estimated when it filed registration documents with the Securities and Exchange Commission on Jan. 11. The selling price was also $2.50 a share higher than the $36.25 target.

AUBURN HILLS, Mich. -- Two U.S. automakers reported strikingly different sales results for October, as Chrysler Corp.'s car and truck sales rose 19 percent while General Motors Corp.'s fell 7.5 percent.Both companies sold as many trucks, minivans and sports utility vehicles as they could build. But GM's car production and sales are down because it's changing over to a lot of new models. Chrysler is using rebates to keep car sales strong.The results were in line with analysts' expectations, keeping the industry on track for a 7 percent rise in sales over October last year.

DETROIT -- With one tart letter to the Chrysler Corp.'s board, Kirk Kerkorian, the largest investor in the company, made $100 million in paper profits yesterday.He said he planned to increase his 9 percent stake in Chrysler, the No. 3 U.S. automaker, and would put pressure on the board to quickly raise the share price.Chrysler stock surged $3.125 on the news, to close at $49, with almost 4 million shares changing hands. It was the second-most-active issue on the New York Stock Exchange.Mr.

DETROIT -- A deal to sell the Chrysler Group likely will get tied up in the contract negotiations between the Detroit Three and the United Auto Workers union, a growing number of auto industry experts say. That means a final deal to sell Chrysler is unlikely to be made before Sept. 14, the day the labor contract expires, complicating both the talks for a new labor agreement and negotiations to sell the Auburn Hills, Mich., unit of DaimlerChrysler AG. Early on, the thinking had been that DaimlerChrysler would sell Chrysler quickly, so the new buyer could negotiate the contract, but that now looks unlikely, experts say. Contract negotiations will begin officially in July and, if history is any guide, will go up to the deadline - if not past it. Any serious buyer for Chrysler likely will want concessions from the union on health care costs - concessions the UAW won't want to accept before it negotiates new contracts with Ford Motor Co. and General Motors Corp.