Cerberus taps Nardelli to run Chrysler

(Reuters) - Chrysler's current chief executive, Tom LaSorda, will stay on as president and vice-chairman and continue to lead ongoing talks with the United Auto Workers union as the automaker's No. 2 executive and a consultant to Cerberus.




In a further shake-up, Chrysler's current chief operating officer, Eric Ridenour, will leave and his post responsible for production and product planning will not be filled.


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Chrysler Offers to Pay Higher Interest on Loans Sought for Finance Unit

(Bloomberg) -- Chrysler raised the proposed interest
rates on $6 billion of loans it is seeking for its finance unit
as investor demand slumps for high-yield debt.

The increase follows the carmaker's decision earlier this
week to boost rates it is offering on $12 billion more in loans
for its auto unit, said three investors, who declined to be named
because terms aren't public. Both are related to its takeover by
Cerberus Capital Management LP.


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Chrysler sweetens pricing on loans: sources

(Reuters) - Call language on both term loans also is being tightened. The first-lien piece is now callable at 102, 101 and par , while the second-lien loan is now callable at 103, 102, 101, par . Both term loans are being offered at discounts of 99.5 and 99, respectively.




Chrysler Financial removed the incremental term loan basket. Also, the debt to net worth covenant governing the first-lien loan will be added to the second-lien loan, which will be governed by the borrowing base.


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German Stocks Increase, Led by ThyssenKrupp on Upgrade; BMW, Daimler Climb

(Bloomberg) -- Germany's benchmark DAX Index rose,
recovering some of yesterday's decline. ThyssenKrupp AG paced
gains after Goldman, Sachs & Co. recommended buying the stock.

Bayerische Motoren Werke AG climbed after the world's
largest maker of luxury cars said sales increased to a record
last month. Shares of DaimlerChrysler AG also increased.


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Chery-built Chrysler cars aim to reach US in 30 mths

(Reuters) - The first auto built by Chery Automobile Co. for Chrysler could be exported to North America, but not the United States, said LaSorda, who made the forecast at a Beijing signing ceremony marking a strategic alliance between the two auto makers.




Chrysler -- which is being sold by DaimlerChrysler AG to Cerberus Capital Management -- and Chery will develop, manufacture and distribute Chery-made small and sub-compact cars in North America, Europe and other major automotive markets, they said.


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Ingersoll-Rand, Daimler Lead Gains in World Stock Markets by Shrinking

(Bloomberg) -- Some of the best-performing shares
worldwide this year belong to companies that are beating the
stock market by getting smaller.

Temple-Inland Inc., whose products range from paper to
loaning money, Ingersoll-Rand Co., a producer of construction
equipment and trucks, and German carmaker DaimlerChrysler AG are
leading gains worldwide as they spin off or sell units to
concentrate on more profitable businesses.


Read more at Bloomberg Exclusive News