DaimlerChrysler will shed about US$18 billion in pension and healthcare obligations by selling a majority interest in Chrysler.

An affiliate of private equity firm Cerberus Capital Management will make a capital contribution of $7.4 billion in return for an 80.1% stake in Chrysler.

DaimlerChrysler will own the remaining interest and also change its name to Daimler AG.

The transaction is expected to close during the third quarter of this year.

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