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New York – Nine years ago DaimlerBenz bought Chrysler for $37 billion. Today they sold the bulk of the company to a private equity firm for the bargain basement price of $7.4 billion.

Lee Iaccoca, who famously engineered a government bailout of Chrysler in 1979, is “broken hearted.”

The new owners of Chrysler are faced with billions of dollars in employee costs thanks to retiree pensions and health plans.

Chrysler said it  would keep its heavy obligations for pensions and health care costs, a key issue complicating DaimlerChrysler’s effort to sell the division.

Daimler will retain a 19.9% share of Chrysler, leaving it with
Mercedes-Benz.

Shareholders will decide on changing the company’s name to Daimler AG.