Speculations over Chrysler stake sale by Daimler were put to rest with the German auto giant confirming that it is in talks with Cerberus to sell its 19.9 per cent stake in its former partner.

The company has said that it is in discussions with Cerberus Capital Management regarding the redemption of its remaining 19.9 per cent stake in Chrysler. The stake sale confirmation comes close on the heels of Chrysler unveiling of three electric car prototypes in the US. The move came as a surprise when it lifted the wraps off these three electric prototypes this week.

It, however, is a known fact that the company is in deep financial trouble on the back of reduced US sales. The shortcoming the company faces includea product range that lacks the smaller fuel-efficient vehicles that the US car enthusiasts are now swearing by.

Talking more of the stake sale, it has been reported that legacy technology agreements between the two automotive companies may not be affected by the stake sale by Daimler. Meanwhile, Cerberus hs reiterated that that it expected all existing industrial relationships between Daimler and Chrysler to continue. DaimlerChrysler, once upon a time, the biggest industrial merger in history ceased to exist as the company broke up soon after when private equity firm Cerberus puchased 80.1per cent of Chrysler.

Speculations of late suggest that Cerberus may also go with a goal of pocketing 100 per cent ownership prior to a sale. However, this has not been confirmed beyond doubt.