Magna & Blackstone Muscled-out by Cerberus with $7.4 billion bid.

I’ve been intently following this story for the past few weeks because DaimlerChrysler (DCX) is a very large part of my company’s business. Interestingly enough, Magna is also a valued customer to ITW. It could have been a great situation for the future of the robotic paint equipment division had Magna won the bidding war to take control of DCX.

This morning, the Detroit News reported in an article that Cerberus Capital Management will purchase 80.1% stake of the automaker for $7.4 billion after a bidding war against Magna International Inc. and Blackstone Group.

I don’t care to regurgitate the story the link is there for you to check out if you so choose, but being that I’m a proud Michigander and understanding my passion for the rebirth of Detroit, I can’t help but wonder what this may mean for the economic progression of our great state. In short I doubt it’ll have any positive impact at all.

The fact that the UAW feels this is a good situation for them concerns me. Although it is true I am a UAW member in good standing and the majority of my relatives are UAW members, I strongly believe the union has played a major role in the current state of Michigan’s horrific economy. Of course I don’t see an end to the union anytime soon, but I certainly wouldn’t be too upset to wake up and hear it dissolved overnight. Either that or they get a grip on the reality of over paying under educated employees.

According to the article most of Chrysler’s top management will remain the same in the new Chrysler Holdings LLC. Does anyone else see how this may not promote the idea of change and/or organizational advancement? I hope I’m wrong and my pessimistic feelings surrounding this sale prove inaccurate.