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Changing Course: The Chrysler Deal, Rising Gas Prices and Other Car Talk

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Earlier this month, Cerberus Capital Management bought 80.1% of Chrysler Group from German auto maker Daimler-Chrysler, effectively ending a nine-year marriage between the two that never quite worked out. The expectations created by this acquisition are huge, and revolve in part around Cerberus’s ability to make a deal with the United Auto Workers union that would include restructuring billions of dollars of retirement and health-care benefits — a burden that both Ford and GM — but not Toyota — also carry. We asked Wharton management professor John Paul MacDuffie , co-director of the International Motor Vehicle Program, to give his views about Chrysler, Cerberus, high gas prices and other auto-related issues.…

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