DaimlerChrysler has recently announced that they will be selling a large portion of the company to a New York based private equity firm, Cerberus Management.

Cerberus will make a capital contribution of $7.4 billion in return for an 80.1% equity interest in the future new company, Chrysler Holding LLC.

DaimlerChrysler will hold a 19.9% equity interest in the new company. Chrysler Holding LLC will hold 100% each of the future Chrysler Corporation LLC, which produces and sells Chrysler, Dodge and Jeep® vehicles.

Despite uncertainty about the purchase, Belvidere leaders believe that the 2005 investment DaimlerChrysler made at the Belvidere Assembly Plant puts the facility in a good position during the transition.

"We are confident the $419 million investment, the small fuel efficient vehicles, and the strong workforce employed at the Belvidere plant, all point to a bright future, state City of Belvidere Mayor Fred Brereton. "The city will continue to look for ways to capitalize on Chrysler's presence as a good corporate citizen."

The sales of the Jeep and Dodge models that are assembled at the Belvidere plant have been performing well. That positive element, coupled with the Chrysler Group's recent re-tooling investments at the Belvidere Assembly plant, has other community leaders believing that the plant is now in a stronger, competitive position.

"We feel that today's announcement will create a financially strong new company that will produce and sell Chrysler, Dodge and Jeep products, "stated Mark Williams, executive director of Growth Dimensions for Belvidere-Boone County. "Considering the investments that have already been made, the wrinkles in the smart manufacturing process ironed out, our initial feel is that the local operations of the Belvidere plant is in a much better position going into this corporate transition."

Cerberus Chairman John Snow said that he plans to work together with Chrysler's management and union to give the company the financial stability it's been lacking.

"We welcome Chrysler into the Cerberus family of companies and believe Cerberus will be a good home for Chrysler, expressed chairman Snow. "Cerberus believes in the inherent strength of U.S. manufacturing and of the U.S. auto industry. Most importantly, we believe in Chrysler."