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Deals on Wheels: It's Rush Hour for Germany's Auto Industry

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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For the last couple of years, auto analysts and others have focused most of their attention on Detroit, the home of General Motors and Ford, two iconic American car companies that have been losing money, shedding workers by the tens of thousands and looking for strategies that will help them back on track. But what has been going on in Wolfsburg, the headquarters of Volkswagen, a quintessential German automaker, and in Stuttgart, headquarters of DaimlerChrysler, a German-American hybrid? Quite a bit, actually. VW’s relationship with Porsche, a much smaller company than VW, has gotten cozier, now that Porsche has upped its ownership stake in VW. But the major story in Germany’s auto sector is the still-unknown fate of yet a third iconic U.S. car brand, Chrysler. Acquired by DaimlerBenz in a much-ballyhooed deal nine years ago under Jürgen Schrempp, Daimler’s former chief executive, Chrysler is being eyed for purchase by several private equity firms.…

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