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Chrysler Exits Daimler JV in China. Daimler Pays.

It's no real surprise that Daimler and Chrysler have agreed to disband their three-way joint venture in China, and that Chrysler will withdraw from Beijing Benz-DaimlerChrysler.

What does come as a surprise is the cost. Daimler will now 'invest' an extra $1 billion in the Chrysler free operation, as compensation for the withdrawal.

This falls into the nice work if you can get it category; a billion to be rid of Chrysler seems like a pretty good bargain to us. To be paid a billion to be rid of Chrysler; Father Christmas is on the roof and it's still only August. Whether or not the presence of BAIEC as both a shareholder in BBDC and Beiqi Foton has anything to do with this, we know not.

However, this does offer us some notion of the going rate in the Chinese Automotive Divorce courts, and will, presumably, be regarded in Gothenburg with some angst. AB Volvo will, we assume, have to get out of bed with China National at some point, and if Zetsche's leg can be lifted for a billion for Chrysler, who knows what figure will be attached to CNHTC's demands, likely to be dropping into Johansson's in-tray any time soon.

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