“Old Chrysler” creditors are filing suit against Daimler AG saying that they “stripped billions from the company since they acquired it in 1998″.

Chrysler was worth roughly 38 billion dollars in 1998 and was widely known as a cash cow and the most profitable car company.  Daimler basically gave it away to Cerberus Capital Management in 2007 for a fraction of what they paid in 1998.

The creditors state that Daimler knew its acquisition of Chrysler was a huge mistake and started stripping assets from Chrysler to help cover their losses.

It is speculated that Daimler was hurting in the mid-late 1990’s and acquired Chrysler for its bank account, and Sport Utility Vehicle building know how.

In other recent court cases, then Daimler CEO Jurgen Schrempp has stated that the acquisition of Chrysler in 1998 was “vital” to Daimler long term success.

I guess we know what that means now….

• Jim Press to leave Chrysler
• New 3G Aluminum Hemi blocks from Mopar
• Holley files for bankruptcy protection, Again.