Douglas Andrew Fraser (December 18, 1916 – February 23, 2008) was a Scottish–American union leader. He was president of the United Auto Workers from 1977 to 1983 and an adjunct professor of labor relations at Wayne State University for many years.
124-569: He is best remembered for helping to save Chrysler from bankruptcy in 1979 by heavily lobbying the US Congress for a loan and convincing workers to make concessions. He received the Walter P. Reuther Humanitarian Award from Wayne State University in 2006. Fraser was born in Glasgow, Scotland , on December 18, 1916. His father, Samuel, was an electrician and an active and vocal trade unionist. The family
248-576: A 60 Minutes interview with Steve Kroft , Sergio Marchionne responded "just to rectify the record I paid back the loans at 19.7% Interest. I don't think I committed to do to a commercial on top of that" and characterized the Republican reaction as "unnecessary and out of place". In 2014, Chrysler started using a new slogan, "America's Import" in ads introducing their all-new 2015 Chrysler 200 , targeting foreign automakers from Germany to Japan with such ads (German performance and Japanese quality), and at
372-679: A $ 2 million investment could be leveraged into $ 1.3 billion in lending. Congressional deregulation exacerbated the S&;L crisis. The Economic Recovery Tax Act of 1981 led to a boom in commercial real estate. The passage of the Depository Institutions Deregulation and Monetary Control Act and the Garn–St. Germain Act expanded the authority of federally chartered S&Ls to make acquisition, development, and construction real estate loans, and
496-401: A $ 50 million stock offering. $ 180 million was to come from concessions from dealers and suppliers. Also in 1978, Iacocca offloaded the ailing European operation to PSA Peugeot Citroën for a nominal $ 1, taking with it the group's substantial losses and debts which had been dragging the rest of the business down. After a period of plant closures and salary cuts agreed to by both management and
620-460: A 19.9% stake. The economic collapse during the Financial crisis of 2007–2008 pushed the company to the brink. On April 30, 2009, the automaker filed for Chapter 11 bankruptcy protection to be able to operate as a going concern, while renegotiating its debt structure and other obligations, which resulted in the corporation defaulting on over $ 4 billion in secured debts. The U.S. government described
744-585: A March 27 mediation to try to settle the lawsuit over the clothing company's use of "Imported from Detroit" slogan. Pure Detroit stated that Chrysler has made false claims about the origins of three vehicles - Chrysler 200, Chrysler 300 and Chrysler Town & Country - none of which are built in Detroit. Pure Detroit also said that Chrysler's Imported From Detroit merchandise is not being made in Detroit. In 2012 Chrysler and Pure Detroit came to an undisclosed settlement. Chrysler's Jefferson North Assembly , which makes
868-423: A bad time for banks because of a recent wave of deregulation . The Depository Institutions Deregulation and Monetary Control Act of 1980 had phased out a number of restrictions on their financial practices, broadened their lending powers, and raised the deposit insurance limit from $ 40,000 to $ 100,000, which caused moral hazard . Banks rushed into real estate lending, speculative lending, and other ventures as
992-536: A combination of deficit spending and the lowering of interest rates would slowly lead to economic recovery. Many economists also insist that the significantly-lower tax rates significantly contributed to the recovery. From a high of 10.8% in December 1982, unemployment gradually improved until it fell to 7.2% on Election Day in 1984. Nearly two million people left the unemployment rolls. Inflation fell from 10.3% in 1981 to 3.2% in 1983. Corporate income rose by 29% in
1116-719: A combination of negotiations with creditors, filing for Chapter 11 bankruptcy reorganization on April 30, 2009, and participating in a bailout from the U.S. government through the Troubled Asset Relief Program . On June 10, 2009, Chrysler emerged from the bankruptcy proceedings with the United Auto Workers pension fund, Fiat S.p.A. , and the U.S. and Canadian governments as principal owners. The bankruptcy resulted in Chrysler defaulting on over $ 4 billion in debts. In May 2011, Chrysler finished repaying its obligations to
1240-462: A comprehensive health-and-safety program, significant improvement to the early retirement plan, and a new dental care benefit. A new streamlined arbitration process was also negotiated, which reduced the time for resolving grievances. Fraser was president of the UAW from 1977 to 1983. He was elected president after Woodcock had reached the mandatory retirement age of 65, according to the UAW constitution. He
1364-519: A cost advantage over another. Some deeply criticized Fraser's 1979 negotiations, however. They argued that the Chrysler agreement set off a wave of concessionary bargaining among automobile manufacturers that then spread into steel, mining, trucking, meatpacking, airlines and rubber. They also claim that a thirty-year truce between labor and management broke down after 1979, leading automobile manufacturers to abandon pattern bargaining and seek an end to job protections and cost-of-living increases. Fraser
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#17330558343261488-880: A deeper downturn from July 1981 to November 1982. One cause was the Federal Reserve 's contractionary monetary policy , which sought to rein in the high inflation . In the wake of the 1973 oil crisis and the 1979 energy crisis , stagflation began to afflict the economy. Unemployment had risen from 5.1% in January 1974 to a high of 9.0% in May 1975. Although it had gradually declined to 5.6% by May 1979, unemployment began rising again. It jumped sharply to 6.9% in April 1980 and to 7.5% in May 1980. A mild recession from January to July 1980 kept unemployment high, but despite economic recovery, it remained at historically high levels (about 7.5%) until
1612-417: A deeply-divided vote of the UAW executive council voted 13-to-12 against him, Fraser withdrew his name, and Leonard Woodcock became union president. Fraser led a nine-day strike against Chrysler that began on September 14, 1973, the first against the automaker in decades. The collective bargaining agreement hammered out five days later and ratified on September 23 contained restrictions on mandatory overtime,
1736-406: A new FCA logo were announced. The most challenging launch for this new company came immediately in January 2014 with a completely redesigned Chrysler 200 . The vehicle's creation is from the completely integrated company, FCA, executing from a global compact-wide platform. On December 16, 2014, Chrysler Group LLC announced a name change to FCA US LLC. On January 12, 2017, FCA shares traded at
1860-456: A number of years afterwards. Northern Ireland was the hardest-hit region, with unemployment standing at nearly 20%. The rate exceeded 15% in much of Scotland and Northern England . By April 1983, Britain became a net importer of goods for the first time in modern times. Areas of Tyneside , Yorkshire , Merseyside , South Wales , Western Scotland and the West Midlands were hit hard by
1984-490: A short period of expansion, in turn, followed by a steeper, longer period of economic contraction starting sometime in 1981 and ending in November 1982. Most of these countries experienced stagflation , a situation of both high inflation rates and high unemployment rates. Globally, while some countries experienced downturns in economic output in 1980 and/or 1981, the broadest and sharpest worldwide decline of economic activity and
2108-565: A steep 3.2% decline in real GDP for 1982. As with other G7 countries, Canada had two separate economic contractions in the early 1980s. These were a shallow drop in GDP and a slowing in employment growth for five months between February and June 1980, and a deeper 17-month contraction in both GDP and employment between July 1981 and October 1982, although both contractions were driven by the same desire of governments to reduce inflation by increasing interest rates. Real Canadian GDP declined by 5% during
2232-401: A strong likelihood of winning its case. Therefore, Pure Detroit's owner, Detroit retailer Moda Group LLC, can continue selling its "Imported from Detroit" products. Tarnow also noted that Chrysler does not have a trademark on "Imported from Detroit" and rejected the automaker's argument that trademark law is not applicable to the case. In March 2012, Chrysler Group LLC and Pure Detroit agreed to
2356-412: A vice-president of the international union in 1970. As a key member of Reuther's staff, Fraser was involved in a number of successful collective bargaining agreements, early retirement program in 1964, and wage parity for both US and Canadian members in 1967. Reuther died in a plane crash during the 1970 contract talks, leading many to speculate that Fraser might be tapped to lead the union. However, after
2480-401: Is available on several current and was available on several discontinued Chrysler models including the current Dodge Dart , Chrysler 300 , Aspen , Sebring , Town and Country , Dodge Avenger , Caliber , Grand Caravan , Challenger , Charger , Journey , Nitro , and Ram . Early 1980s recession The early 1980s recession was a severe economic recession that affected much of
2604-529: Is best known for his role in negotiating a greater voice for the union in corporate governance with Chrysler during the company's 1979 bankruptcy crisis and subsequent government-sponsored loan. Fraser mobilized UAW members and heavily lobbied Congress in a move that proved critical to convincing the government to provide $ 1.2 billion in federally-guaranteed loans, which enabled Chrysler to avoid bankruptcy. He used Reuther's "equality of sacrifice" formula to convince UAW members that major concessions were needed to save
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#17330558343262728-400: Is documented in historical materials housed within the Walter P. Reuther Library at Wayne State University . His time as UAW president and vice-president and as university professor are chronicled in individual collections. The archival materials include personal correspondence, administrative memoranda, photographs, and other record types. Researchers are encouraged to find the collections at
2852-415: Is non-transferable. After Chrysler's restructuring, the warranty program was replaced by five-year/100,000 mile transferable warranty for 2010 or later vehicles. In 2008, as a response to customer feedback citing the prospect of rising gas prices as a top concern, Chrysler launched the "Let's Refuel America" incentive campaign, which guaranteed new-car buyers a gasoline price of $ 2.99 for three years. With
2976-500: Is the smallest of the "Big Three" U.S. automakers (Stellantis North America, Ford Motor Company , and General Motors ). In 2020, FCA US sold just over 1.8 million vehicles. Chrysler was the world's 11th largest vehicle manufacturer as ranked by OICA in 2012. Total Chrysler vehicle production was about 2.37 million that year. The company has since become a wholly-owned subsidiary and no longer reports global sales. In 2007, Chrysler began to offer vehicle lifetime powertrain warranty for
3100-641: The Buick division at General Motors. He then acquired Fargo Trucks and the Dodge Brothers Company , and created the Plymouth and DeSoto brands in 1928. Facing postwar declines in market share, productivity, and profitability, as GM and Ford were growing, Chrysler borrowed $ 250 million in 1954 from Prudential Insurance to pay for expansion and updated car designs. Chrysler expanded into Europe by taking control of French, British, and Spanish auto companies in
3224-780: The Chrysler , Dodge , Jeep , and Ram Trucks nameplates. It also includes Mopar , its automotive parts and accessories division, and SRT , its performance automobile division. The division also distributes Alfa Romeo , Fiat , and Maserati vehicles in North America. The original Chrysler Corporation was founded in 1925 by Walter Chrysler from the remains of the Maxwell Motor Company . In 1998, it merged with Daimler-Benz , which renamed itself DaimlerChrysler but in 2007 sold off its Chrysler stake. The company operated as Chrysler LLC through 2009, then as Chrysler Group LLC. In 2014, it
3348-515: The Chrysler Voyager in Austria for European markets in 1992. In 1998, Chrysler and its subsidiaries entered into a partnership dubbed a "merger of equals" with German-based Daimler-Benz AG, creating the combined entity DaimlerChrysler AG . To the surprise of many stockholders, Daimler acquired Chrysler in a stock swap before Chrysler CEO Bob Eaton retired. Under DaimlerChrysler, the company
3472-620: The Executive Office of the President . In financial circles, the FHLBB and FSLIC were called "the doormats of financial regulation". The FHLBB relied heavily on its persuasive powers and the US states to enforce banking regulations. One consequence of the FHLBB's lack of enforcement abilities was the promotion of deregulation and of aggressive, expanded lending to forestall insolvency . In November 1980,
3596-526: The Garn–St. Germain Depository Institutions Act of 1982 , which further deregulated banks, savings and loans. The Act authorized banks to begin offering money market accounts in an attempt to encourage deposit in-flows, and it also removed additional statutory restrictions in real estate lending and relaxed loans-to-one-borrower limits. That encouraged a rapid expansion in real estate lending while
3720-567: The Jeep/Eagle division as a "specialty" arm to market products distinctly different from the K-car-based products with the Eagle cars targeting import buyers. Former AMC dealers sold Jeep vehicles and various new Eagle models, as well as Chrysler products, strengthening the automaker's retail distribution system. Eurostar , a joint venture between Chrysler and Steyr-Daimler-Puch , began producing
3844-562: The Latin American debt crisis , long-lasting slowdowns in the Caribbean and Sub-Saharan African countries, the US savings and loans crisis , and a general adoption of neoliberal economic policies throughout the 1990s. The Canadian economy experienced overall weakness from the start of 1980 to the end of 1983, with low yearly real GDP growth rates of 2.1% and 2.6% in 1980 and 1983, respectively, and
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3968-527: The Penn Square Bank , which had partnered with Continental Illinois in a number of high- risk lending ventures, collapsed. However, federal regulators were reassured by Continental Illinois executives that steps were being taken to ensure the bank's financial security. After its collapse, federal regulators were willing to let the bank fail to reduce moral hazard and so other banks would rein in some of their more risky lending practices. Members of Congress and
4092-502: The Super Bowl . Its two-minute February 5, 2012 Super Bowl XLVI advertisement was titled "Halftime in America". The ad drew criticism from several leading U.S. conservatives , who suggested that its messaging implied that President Barack Obama deserved a second term and, as such, was political payback for Obama's support for the federal bailout of the company. Asked about the criticism in
4216-637: The Walter P. Reuther Library website . Chrysler FCA US, LLC , doing business as Stellantis North America and known historically as Chrysler ( / ˈ k r aɪ s l ər / KRY -slər ), is one of the " Big Three " automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan . It is the American subsidiary of the multinational automotive company Stellantis . Stellantis North America sells vehicles worldwide under
4340-470: The wealthy . Pressured to counteract the increased deficit caused by the recession, Reagan agreed to a corporate tax increase in 1982. However, he refused to raise income tax or to cut defense spending. The Tax Equity and Fiscal Responsibility Act of 1982 instituted a three-year, $ 100 billion tax hike, the largest tax increase since the Second World War . According to Keynesian economists ,
4464-482: The 17-month 1981-82 recession with the unemployment rate peaking at 12%. In-between the two downturns, Canada had 12 months of economic growth. With growth between October 1980 and June 1981 being relatively robust with the total GDP and employment in June 1981 actually surpassing their pre-recession peaks and 1981 having a yearly increase in real GDP of 3.5%. Canada had higher inflation, interest rates, and unemployment than
4588-409: The 1960s; Chrysler Europe was sold in 1978 to PSA Peugeot Citroën for a nominal $ 1. The company struggled to adapt to changing markets, increased U.S. import competition, and safety and environmental regulation in the 1970s. It began an engineering partnership with Mitsubishi Motors , and began selling Mitsubishi vehicles branded as Dodge and Plymouth in North America. On the verge of bankruptcy in
4712-757: The 47% ownership of AMC that was held by Renault . The remaining outstanding shares of AMC were bought on the NYSE by August 5, 1987, making the deal valued somewhere between US$ 1.7 billion and US$ 2 billion, depending on how costs were counted. Chrysler CEO Lee Iacocca wanted the Jeep brand, particularly the Jeep Grand Cherokee (ZJ) that was under development, the new world-class manufacturing plant in Bramalea, Ontario , and AMC's engineering and management talent that became critical for Chrysler's future success. Chrysler established
4836-572: The Big 3 US automakers, Chrysler lacked the financial resources to meet all of these challenges. In 1976, with the demise of the reliable Dart/Valiant, quality control declined. Their replacements, the Dodge Aspen and Plymouth Volare , were comfortable and had good roadability, but owners soon experienced major reliability problems which crept into other models as well. Engines failed and/or did not run well, and premature rust plagued bodies. In 1978, Lee Iacocca
4960-685: The British economic recovery after the early 1980s recession included the introduction of enterprise zones on deindustrialised land in which traditional industries were replaced by new industries as well as commercial developments. Businesses were given temporary tax breaks, and exemptions as incentives to set up base in such areas. Like Canada, the early 1980s recession in the United States technically consisted of two separate downturns, one commencing in January 1980 which yielded to modest growth in July 1980 with
5084-573: The Chalmers automobile was ended. In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler Six was designed to provide customers with an advanced, well-engineered car, at an affordable price. Elements of this car are traceable to a prototype which had been under development at Willys during Chrysler's tenure The original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication, and an oil filter, features absent from most autos at
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5208-665: The Chrysler Corporation began dividing its vehicle offerings by price class and function. The Plymouth brand was introduced at the low-priced end of the market (created essentially by once again reworking and rebadging the Chrysler Series 50 four-cylinder model). At the same time, the DeSoto brand was introduced in the medium-price field. Also in 1928, Chrysler bought the Dodge Brothers automobile and truck company and continued
5332-476: The Chrysler Corporation. The company was headquartered in the Detroit enclave of Highland Park , where it remained until completing the move to its present Auburn Hills location in 1996. Chrysler had arrived at the ailing Maxwell- Chalmers company in the early 1920s, hired to overhaul the company's troubled operations (after a similar rescue job at the Willys -Overland car company). In late 1923, production of
5456-485: The Chrysler brand as an upscale brand. In October 2009, Dodge's car and truck lines were separated, with the name "Dodge" being used for cars, minivans, and crossovers and "Ram" for light- and medium-duty trucks and other commercial-use vehicles. In 2011, Chrysler unveiled their "Imported From Detroit" campaign with ads featuring Detroit rapper Eminem , one of which aired during the Super Bowl. The campaign highlighted
5580-424: The Chrysler umbrella. In 1998, Chrysler merged with German automaker Daimler-Benz to form DaimlerChrysler AG ; the merger proved contentious with investors. As a result, Chrysler was sold to Cerberus Capital Management and renamed Chrysler LLC in 2007. Like the other Big Three automobile manufacturers, Chrysler was impacted by the automotive industry crisis of 2008–2010 . The company remained in business through
5704-420: The FHLBB lowered net worth requirements for federally insured S&Ls from 5% of deposits to 4%. The FHLBB lowered net worth requirements again to 3% in January 1982. Additionally, the agency required S&Ls to meet those requirements only over 20 years. The rule meant that S&Ls less than 20 years old had practically no capital reserve requirements. That encouraged extensive chartering of new S&Ls since
5828-468: The FHLBB was a relatively small agency, overseeing a quiet, stable industry. Also, the FHLBB was unable to add to its staff because of stringent limits on the number of personnel that it could hire and the level of compensation it could offer. The limitations were placed on the agency by the Office of Management and Budget and were routinely subject to the political whims of that agency and political appointees in
5952-591: The Federal Reserve increase interest rates to reduce high inflation. Each time, once inflation fell and interest rates were lowered, unemployment slowly fell. Determined to wring inflation out of the economy, Federal Reserve chairman Paul Volcker slowed the rate of growth of the money supply and raised interest rates . The federal funds rate , which was about 11% in 1979, rose to 20% by June 1981. The prime interest rate , an important economic measure, eventually reached 21.5% in June 1982. The recession came at
6076-470: The French Simca , British Rootes , and Spanish Barreiros companies, merging them into Chrysler Europe in 1967. In the 1970s, an engineering partnership was established with Mitsubishi Motors , and Chrysler began selling Mitsubishi vehicles branded as Dodge and Plymouth in North America. Chrysler struggled to adapt to the changing environment of the 1970s. When consumer tastes shifted to smaller cars in
6200-501: The Japanese called "the lost decade",in the mid-1980s, Japan's economy began a period of expansion in 1986 that continued until it again entered a recessionary period in 1992. But the property market still never returned to its “pre-boom” levels. [1] The Tokyo stock exchange doubled in 1983 from Y8,800 to Y16,401 in 1986. But the surge that hit its peak of Y26,646 was temporarily halted by “Black Monday” on October 14th, 1987. “Black Monday”
6324-578: The Jeep Grand Cherokee and Dodge Durango, is the only car manufacturing plant of any company remaining entirely in Detroit (General Motors operates a plant that is partly in Detroit and partly in Hamtramck). In 2011, Eminem settled a lawsuit against Audi alleging the defendant had ripped off the Chrysler 300 Super Bowl commercial in the Audi A6 Avant ad. Again in 2012, Chrysler advertised during
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#17330558343266448-641: The Marshall Mathers Foundation. In March 2011, Chrysler Group LLC filed a lawsuit against Moda Group LLC (owner of Pure Detroit clothing retailer) for copying and selling merchandise with the "Imported from Detroit" slogan. Chrysler claimed it had notified defendant of its pending trademark application February 14, but the defendant argued Chrysler had not secured a trademark for the "Imported From Detroit" phrase. On June 18, 2011, U.S. District Judge Arthur Tarnow ruled that Chrysler's request did not show that it would suffer irreparable harm or that it had
6572-562: The New York Stock Exchange lost value after the EPA accused FCA US of using emissions cheating software to evade diesel-emissions tests, however the company countered the accusations, and the chairman and CEO Sergio Marchionne sternly rejected them. The following day, shares rose as investors played down the effect of the accusations. Analysts gave estimates of potential fines from several hundred million dollars to $ 4 billion, although
6696-676: The Rambler ran fine in warm weather, but suffered hard starting in cooler temperatures and AMC decided not to use this EFI system on its 1957 Rambler Rebel production cars that were sold to the public. Chrysler also used the Bendix "Electrojector" fuel injection system and only around 35 vehicles were built with this option, on its 1958 production-built car models. Owners of EFI Chryslers were so dissatisfied that all but one were retrofitted with carburetors (while that one has been completely restored, with original EFI electronic problems resolved). The Valiant
6820-405: The S&L crisis was more than $ 160 billion. The recession was nearly a year old before President Ronald Reagan stated on October 18, 1981, that the economy was in a "slight recession". The recession coupled with budget cuts, which were enacted in 1981 but began to take effect only in 1982, led many voters to believe that Reagan was insensitive to the needs of average citizens and favored
6944-541: The S&L problem. Furthermore, the Reagan administration did not want to alarm the public by closing a large number of S&Ls. Such actions significantly worsened the S&L crisis. The S&L crisis lasted well beyond the end of the economic downturn. The crisis was finally quelled by passage of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 . The estimated total cost of resolving
7068-482: The U.S. government five years early, although the cost to the American taxpayer was $ 1.3 billion. Over the next few years, Fiat S.p.A. gradually acquired the other parties' shares. In January 2014, Fiat acquired the rest of Chrysler from the United Auto Workers retiree health trust, making Chrysler Group a subsidiary of Fiat S.p.A. In May 2014, Fiat Chrysler Automobiles was established by merging Fiat S.p.A. into
7192-481: The U.S. purchase of eligible Chrysler, Jeep, and Dodge vehicles, customers could enroll in the program and receive a gas card that immediately lowers their gas price to $ 2.99 a gallon, and keeps it there for the three years. Chrysler plans for Lancia to codevelop products, with some vehicles being shared. Olivier Francois, Lancia's CEO, was appointed to the Chrysler division in October 2009. Francois plans to reestablish
7316-512: The US introduced credit controls producing a slump in demand for Canada's housing and auto industry exports in early 1980 thereby triggering the early first portion of the recession in Canada. Most Canadians were also hit hard financially by a steady rise in oil and gas prices during the 1970s, especially their acceleration in 1979 when the worldwide oil supply was disrupted by the Iranian revolution, with
7440-453: The United States and Canadian governments. The US Treasury, through the Troubled Asset Relief Program (TARP), invested $ 12.5 billion in Chrysler and recovered $ 11.2 billion when the company shares were sold in May 2011, resulting in a $ 1.3 billion loss. On July 21, 2011, Fiat bought the Chrysler shares held by the US Treasury. The purchase made Chrysler foreign-owned again, this time as
7564-555: The United States during the early 1980s recession. While inflation accelerated across North America in the late 1970s, it was higher in Canada because of the US decision to switch to a floating exchange rate , which lowered the value of the Canadian dollar to US$ 0.85 by 1979, which made US imports more expensive for Canadians to purchase. Canada's inflation rate was 10.2% for 1980 overall, rising to 12.5% for 1981 and 10.8% for 1982 before dropping to 5.8% for 1983. To control its inflation,
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#17330558343267688-440: The agency. Despite the failures and mergers, there were still 415 S&Ls at the end of 1982 that were insolvent. Federal action initially caused the problem by allowing institutions to get involved in creating wealth by unhealthy fractional reserve practices, lending out much more money than they could ever afford to pay back out to customers if they came to withdraw their money. That ultimately led to S&Ls' failure. Later,
7812-503: The already high rates of inflation in several major advanced countries to new double-digit highs, with countries such as the United States , Canada , West Germany , Italy , the United Kingdom and Japan tightening their monetary policies by increasing interest rates in order to control the inflation. These G7 countries each, in fact, had " double-dip " recessions involving short declines in economic output in parts of 1980 followed by
7936-746: The auto unions, the loans were repaid with interest in 1983. In November 1983, the Dodge Caravan/Plymouth Voyager was introduced, establishing the minivan as a major category, and initiating Chrysler's return to stability. In 1985, Diamond-Star Motors was created, further expanding the Chrysler-Mitsubishi relationship. In 1985, Chrysler entered an agreement with American Motors Corporation to produce Chrysler M platform rear-drive, as well as Dodge Omnis front wheel drive cars, in AMC's Kenosha, Wisconsin , plant. In 1987, Chrysler acquired
8060-586: The beginning of the 1980s. That followed a string of crises that had plagued the British economy for most of the 1970s. Consequently, unemployment had gradually increased since the mid-1960s. When the Conservative Party , led by Margaret Thatcher won the general election of May 1979 , and swept James Callaghan 's Labour Party from power, the country had just witnessed the Winter of Discontent in which numerous public sector workers had staged strikes. Inflation
8184-486: The board of directors of an important American company. Fraser negotiated another round of concessionary contracts in 1982. The early 1980s recession hit the Ford Motor Company particularly hard. To help save the company, Fraser negotiated significant wage and benefit cuts. The same wage concessions were given to General Motors , as Fraser sought to keep wages uniform across the industry to avoid giving one company
8308-787: The company's action as a "prepackaged surgical bankruptcy". On June 10, 2009, substantially all of Chrysler's assets were sold to "New Chrysler", organized as Chrysler Group LLC. The federal government provided support for the deal with US$ 8 billion in financing at nearly 21%. Under CEO Sergio Marchionne , "World Class Manufacturing" or WCM, a system of thorough manufacturing quality, was introduced and several products were re-launched with quality and luxury. The Ram, Jeep, Dodge, SRT, and Chrysler divisions were separated to focus on their own identity and brand, and 11 major model refreshes occurred in 21 months. The PT Cruiser , Nitro , Liberty and Caliber models (created during DCX) were discontinued. On May 24, 2011, Chrysler repaid its $ 7.6 billion loans to
8432-527: The company's traditional four-make lineup to five (in order of price from bottom to top): Plymouth, Dodge, DeSoto, Chrysler, and the now-separate Imperial. In 1954, Chrysler was the exclusive provider of its Hemi engine in the Facel Vega , a Paris coachbuilder that offered their own line of hand-built luxury performance cars, with the PowerFlite and TorqueFlite transmissions offered. The Facel Vega Excellence
8556-528: The company. Chrysler Group LLC remained a subsidiary until December 15, 2014, when it was renamed FCA US LLC, to reflect the Fiat-Chrysler merger. As a result of the merger between FCA and PSA , on 17 January 2021 it became a subsidiary of the Stellantis Group . The Chrysler company was founded by Walter Chrysler on June 6, 1925, when the Maxwell Motor Company (est. 1904) was re-organized into
8680-427: The company. Fraser then negotiated wage cuts of $ 3 an hour and waived restrictions on layoffs, which allowed Chrysler to shed nearly 50,000 jobs, about half its workforce. In an unprecedented move, Chrysler Corporation named Fraser to its board of directors, on which he served from 1980 to 1984. He had pressed for automobile manufacturers to put UAW members on their boards in 1976. He was the first labor leader to sit on
8804-403: The deep global recession of that year, which caused oil prices to plummet, with Alberta then suffering a drop of 7.2 percentage points in its employment ratio of all the provinces by mid-1983. Yukon's mining industry was also hit hard and more than 70,000 of 115,000 miners across the country were out of work by the end of 1982. Canada's GDP increased markedly in November 1982 officially ending
8928-457: The early 1970s, particularly after the 1973 oil crisis , Chrysler could not meet the demand, although their compact models on the "A" body platform, the Dodge Dart and Plymouth Valiant , had proven economy and reliability and sold very well. Additional burdens came from increased US import competition, and tougher government regulation of car safety, fuel economy, and emissions. As the smallest of
9052-494: The economy soured. By mid-1982, the number of bank failures was rising steadily. Bank failures reached 42, the highest since the depression, as both the recession and high interest rates took their toll. By the end of the year, the Federal Deposit Insurance Corporation (FDIC) had spent $ 870 million to purchase bad loans in an effort to keep various banks afloat. In July 1982, the US Congress enacted
9176-411: The end of 1981. In mid-1982, Rockford, Illinois , had the highest unemployment of all metro areas, at 25%. In September 1982, Michigan led the nation with 14.5%, Alabama was second with 14.3%, and West Virginia was third with 14.0%. The Youngstown–Warren Metropolitan Area had an 18.7% rate, the highest of all metro areas, and Stamford, Connecticut , had the lowest unemployment, at 3.5%. The peak of
9300-455: The ending of selected ads, the advertisement will say, "We Built This", indicating being built in America, instead of overseas. First introduced as MyGig, Chrysler Uconnect is a system that brings interactive ability to the in-car radio and telemetric-like controls to car settings. As of mid-2015, it was installed in hundreds of thousands of Fiat Chrysler vehicles. It connects to the Internet via
9424-473: The entire S&L industry was virtually zero. The Federal Home Loan Bank Board (FHLBB) regulated and inspected S&Ls and administered the Federal Savings and Loan Insurance Corporation (FSLIC), which insured deposits at S&Ls. The FHLBB's enforcement practices were significantly weaker than those of other federal banking agencies. Until the 1980s, savings and loans had limited lending powers and so
9548-528: The fall of 1955 at its Sandusky Ohio plant. On September 28, 1957, Chrysler announced the first production electronic fuel injection (EFI), as an option on some of its new 1958 car models (Chrysler 300D, Dodge D500, DeSoto Adventurer, Plymouth Fury). The first attempt to use this system was by American Motors on the 1957 Rambler Rebel . Bendix Corporation 's Electrojector used a transistor computer brain modulator box, but teething problems on pre-production cars meant very few cars were made. The EFI system in
9672-452: The federal agency which insured the deposits of S&Ls, spent $ 3.5 billion to make depositors whole again (in comparison, only 143 S&Ls with $ 4.5 billion in assets had failed in the previous 45 years, costing the FSLIC $ 306 million). The FSLIC pushed mergers as a way to avoid insolvency. From 1980 to 1982, there were 493 voluntary mergers and 259 forced mergers of savings and loans overseen by
9796-474: The first registered owner or retail lessee. The deal covered owner or lessee in U.S., Puerto Rico, and the Virgin Islands, for 2009 model year vehicles, and 2006, 2007, and 2008 model year vehicles purchased on or after July 26, 2007. Covered vehicles excluded SRT models, Diesel vehicles, Sprinter models, Ram Chassis Cab, Hybrid System components (including transmission), and certain fleet vehicles. The warranty
9920-456: The following year but then edged higher. By 1979, inflation reached a startling 11.3% and in 1980, it soared to 13.5%. A brief recession occurred in 1980. Several key industries, including housing, steel manufacturing, and automobiles, experienced a downturn from which they did not recover until the end of the next recession. Many of the economic sectors that supplied the basic industries were also hit hard. Each period of high unemployment saw
10044-627: The government's inaction worsened the industry's problems. Responsibility for handling the S&L crisis lay with the Cabinet Council on Economic Affairs (CCEA), an intergovernmental council located within the Executive Office of the President. At the time, the CCEA was chaired by Treasury Secretary Donald Regan . The CCEA pushed the FHLBB to refrain from re-regulating the S&L industry and adamantly opposed any governmental expenditures to resolve
10168-458: The inflation rate still averaged more than 12% in 1981-82. Alberta, the prime location of Canada's oil industry at the time, experienced a boom in the late 1970s, 1980 and early 1981, with rapid employment growth, attaining, at 76%, the highest percentage of persons aged 15–64 being employed (defined as the "employment ratio") of all the provinces in early 1981. By the start of 1982, however, Alberta's oil boom had ended due to over-expansion and
10292-474: The largest increase in unemployment was in 1982, with the World Bank naming the recession the "global recession of 1982". Even after major economies, such as the United States and Japan exited the recession relatively early, many countries were in recession into 1983 and high unemployment would continue to affect most OECD nations until at least 1985. Long-term effects of the early 1980s recession contributed to
10416-433: The late 1970s, it was saved by $ 1.5 billion in loan guarantees from the U.S. government. New CEO Lee Iacocca was credited with returning the company to profitability in the 1980s. In 1985, Diamond-Star Motors was created, further expanding the Chrysler-Mitsubishi relationship. In 1987, Chrysler acquired American Motors Corporation (AMC), which brought the profitable Jeep , as well as the newly formed Eagle , brands under
10540-565: The likelihood of a hefty fine was low. Senior United States Senator Bill Nelson urged the FTC to look into possible deceptive marketing of the company's diesel-powered SUVs. Shares dropped 2.2% after the announcement. FCA US would in 2022, plead guilty to a criminal charge of conspiring to defraud the US, to wire fraud, and to violate the Clean Air Act. On July 21, 2018, Sergio Marchionne stepped down as chairman and CEO for health reasons, and
10664-614: The loss of industry and subsequent sharp rise in unemployment. Only in Southeast England did unemployment remain below 10%. Despite the economic recovery that followed the early 1980s recession, unemployment in the United Kingdom barely fell until the second half of the decade. As late as 1986, unemployment exceeded 3 million, but it fell below that figure the following year. By the end of 1989, it had fallen to 1.6 million. The mass unemployment and social discontent resulting from
10788-478: The luxury division. The Chrysler 300 was badged Lancia Thema in some European markets (with additional engine options), giving Lancia a much-needed replacement for its flagship. On January 21, 2014, Fiat bought the remaining shares of Chrysler owned by the VEBA worth $ 3.65 billion. Several days later, the intended reorganization of Fiat and Chrysler under a new holding company, Fiat Chrysler Automobiles , together with
10912-408: The mobile network of AT&T , providing the car with its own IP address. Internet connectivity using any Chrysler, Dodge, Jeep or Ram vehicle, via a Wi-Fi "hot-spot", is also available via Uconnect Web . According to Chrysler LLC, the hotspot range extends approximately 100 feet (30 m) from the vehicle in all directions, and combines both Wi-Fi and Sprint's 3G cellular connectivity. Uconnect
11036-406: The personal staff of UAW President Walter Reuther in 1951, where he was a personal administrative assistant to Reuther. In 1959, he was elected co-director of UAW Region 1A, and a member-at-large of the international UAW board of directors in 1962. Reuther soon thereafter appointed him director of the UAW's Chrysler, Skilled Trades, and Technical, Office and Professional Departments. He was elected
11160-555: The press, however, felt that Continental Illinois was " too big to fail ". In May 1984, federal banking regulators finally offered a $ 4.5 billion rescue package to Continental Illinois. The American banking system had been significantly weakened by the severe recession and the effects of deregulation. Had other banks been forced to write off loans to Continental Illinois, institutions like Manufacturer's Hanover Trust Company , Bank of America , and perhaps Citicorp would have become insolvent. The recession also significantly exacerbated
11284-456: The price of oil reaching almost $ 40 a barrel compared to $ 3 a barrel at the start of the decade. The Bank of Canada raised its prime interest rate throughout 1980 and early 1981 in an attempt to rein in inflation, with the deeper second portion of the recession beginning in July 1981. The Bank of Canada's interest rate peaked at 21% in August 1981 and was kept at high levels until spring 1982, but
11408-551: The real estate market was collapsing, increased the unhealthy competition between banks, savings and loans, and encouraged too many branches to be started. In 1983, another 50 banks failed. The FDIC listed another 540 banks as "problem banks", on the verge of failure. In 1984, the Continental Illinois National Bank and Trust Company , the nation's seventh-largest bank (with $ 45 billion in assets), failed. The bank had first approached failure in July 1982, when
11532-607: The recession occurred in November and December 1982, when the nationwide unemployment rate was 10.8%, the highest since the Great Depression . In November, West Virginia and Michigan had the highest unemployment with 16.4%, Alabama was in third with 15.3%. South Dakota had the lowest unemployment rate in the nation, with 5.6%. Flint, Michigan , had the highest unemployment rate of all metro areas, with 23.4%. In March 1983, West Virginia's unemployment rate hit 20.1%. In spring 1983, thirty states had double-digit unemployment. When Reagan
11656-505: The recession were widely seen as major factors in widespread rioting across Britain in 1981 in parts of towns and cities including Toxteth , Liverpool , as well as a number of districts of London . In 1985, the economy had been out of recession for three years, but unemployment remained stubbornly high. Another wave of rioting occurred across numerous areas of Britain, including several areas across London. Poor employment opportunities, and social discontent were once again seen as factors in
11780-563: The recession, although employment growth did not resume until December 1982 before faltering again in 1983. The average unemployment rates for 1982 and 1983 averaged 11.1% and 12%, respectively, steep rises from 7.6% in 1981. A slowdown in productivity in Canada also emerged during the recession as average output per worker slowed by 1%. The lingering effects of the recession combined with mechanization and companies downsizing to complete internationally, kept Canada's unemployment rates above 10% until 1986. Despite this, Canada's GDP growth rate
11904-620: The rejuvenation of the entire product lineup, which included the new, redesigned, and repackaged 2011 model year 200 sedans and 200 convertibles, the Chrysler 300 sedan, and the Chrysler Town & Country minivan. As part of the campaign, Chrysler sold a line of clothing items featuring the Monument to Joe Louis , with proceeds being funneled to Detroit-area charities, including the Boys and Girls Clubs of Southeast Michigan, Habitat for Humanity Detroit and
12028-687: The rioting. In the UK, economic growth was re-established by the end of 1982, but the era of mass unemployment was far from over. By the summer of 1984, unemployment had hit a new record of 3.3 million although the Great Depression had seen a higher percentage of the workforce unemployed. It remained above the 3 million mark until the spring of 1987, when the Lawson Boom , seen as the consequence of tax cuts by Chancellor Nigel Lawson , sparked an economic boom that saw unemployment fall dramatically. By early 1988, it
12152-412: The savings and loan crisis. In 1980, there were approximately 4590 state and federally chartered savings and loan institutions (S&Ls), with total assets of $ 616 billion. From 1979, they began losing money because of spiraling interest rates. Net S&L income, which had totaled $ 781 million in 1980, fell to a loss of $ 4.6 billion in 1981 and a loss of $ 4.1 billion in 1982. The tangible net worth for
12276-477: The states that deregulated S&Ls were also soft on supervision and enforcement. In some cases, state-chartered S&Ls had close political ties to elected officials and state regulators, which further weakened oversight. As the risk exposure of S&Ls expanded, the economy slid into the recession. Soon, hundreds of S&Ls were insolvent. Between 1980 and 1983, 118 S&Ls with $ 43 billion in assets failed. The Federal Savings and Loan Insurance Corporation,
12400-512: The statutory limit on loan-to-value ratios was eliminated. The changes allowed S&Ls to make high-risk loans to developers. Beginning in 1982, many S&Ls rapidly shifted away from traditional home mortgage financing and into new, high-risk investment activities like casinos , fast-food franchises, ski resorts , junk bonds , arbitrage schemes, and derivative instruments . Federal deregulation also encouraged state legislatures to deregulate state-chartered S&Ls. Unfortunately, many of
12524-480: The strong pound made British products more expensive in export markets. Inflation fell below 10% by the turn of 1982, having peaked at 22% in 1980, and by spring 1983, it had fallen to a 15-year low of 4%. Strikes were also at their lowest level since the early 1950s, and wage growth rose to 3.8% by 1983. However, unemployment reached 12.5% of the workforce by January 1982, a level that had not been seen for some 50 years. The unemployment rate remained similarly high for
12648-493: The successful Dodge line of automobiles and Fargo range of trucks. By the mid-1930s, the DeSoto and Dodge divisions would trade places in the corporate hierarchy. The Imperial name had been used since 1926 but was never a separate make, just the top-of-the-line Chrysler. However, in 1955, the company decided to offer it as its own make/brand and division to better compete with its rivals, Lincoln and Cadillac . This addition changed
12772-403: The time. Among the innovations in its early years were the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to Lockheed , and rubber engine mounts, called " Floating Power " to reduce vibration. Chrysler also developed a wheel with a ridged rim , designed to keep a deflated tire from flying off the wheel. This wheel
12896-528: The union in 1936. He was twice fired for his union beliefs and activities and participated sitdown strikes at Chrysler. Fraser was elected president of UAW Local 227 in 1943, and served in the US Army during World War II . After the war, Fraser quickly rose through the ranks in the UAW. He was appointed an international representative in 1947. During a difficult 104-day strike at Chrysler in 1950, he deeply impressed UAW staff with his negotiating skills. He joined
13020-572: The world between approximately the start of 1980 and 1982. It is widely considered to have been the most severe recession since World War II until the 2007–2008 financial crisis . The recession had multiple causes including the tightening of monetary policies by the United States and other developed nations. This was exacerbated by the 1979 energy crisis , mostly caused by the Iranian Revolution which saw oil prices rising sharply in 1979 and early 1980. The sharp rise in oil prices pushed
13144-428: Was re-elected in 1984 , the latest unemployment numbers (August 1984) showed that West Virginia still had the highest rate in the nation (13.6%) followed by Mississippi (11.1%) and Alabama (10.9%). Inflation , which had averaged 3.2% annually since World War II had more than doubled after the 1973 oil shock, to a 7.7% annual rate. Inflation reached 9.1% in 1975, the highest rate since 1947. Inflation declined to 5.8%
13268-402: Was a crash that ended up hitting the US stock market, causing it to plummet.Then by April 1988, the stock reached past its October record breaking peak and hit Y38,915. [2] Japan’s recession was prolonged into the 90s and they were not able to recover from the increased prices until the early 2000s. Where it finally officially ended in 2002. [3] Eventually recession hit the United Kingdom at
13392-488: Was a four-door hardtop with rear-hinged coach doors that listed for US$ 12,800 ($ 135,175 in 2023 dollars ). On April 28, 1955, Chrysler and Philco announced the development and production of the World's First All-Transistor car radio. The all-transistor car radio, Mopar model 914HR, developed and produced by Chrysler and Philco, was a $ 150 option on the 1956 Imperial automobile models. Philco began manufacturing this radio in
13516-475: Was about 10% and some 1.5 million people were unemployed, compared to some 1 million in 1974, 580,000 in 1970 and just over 300,000 in 1964. Thatcher set about controlling inflation with monetarist policies and changing trade union legislation in an attempt to reduce the strikes of public-sector workers. Thatcher's battle against inflation raised the exchange rate, resulting in the closure of many factories, shipyards and coal pits because imports were cheaper and
13640-473: Was acquired by Fiat S.p.A. ; it subsequently operated as a subsidiary of the new Fiat Chrysler Automobiles ("FCA"), then as a subsidiary of Stellantis , the company formed from the 2021 merger of FCA and PSA Group (Peugeot Société Anonyme). After founding the company, Walter Chrysler used the General Motors brand diversification and hierarchy strategy that he had become familiar with when he worked in
13764-554: Was active in politics his entire life. A Democrat , he was an unabashed liberal . Socially progressive, he was a vocal supporter of the Civil Rights Movement . He defied most UAW in his strong support of desegregation busing in public schools . Despite resistance from both staff and members, he began initiatives within the UAW and the auto industry to recruit more minorities and women. He also pushed for national health insurance . Fraser retired as UAW president in 1983. He
13888-624: Was again fined for the 2017 model year for not meeting the minimum domestic passenger car standard. FCA described the $ 79 million civil penalty as "not expected to have a material impact on its business." As part of a January 2019 settlement, Fiat Chrysler was to recall and repair approximately 100,000 automobiles equipped with a 3.0-liter V6 EcoDiesel engine having a prohibited defeat device , pay $ 311 million in total civil penalties to US regulators and CARB , pay $ 72.5 million for state civil penalties, implement corporate governance reforms, and pay $ 33.5 million to mitigate excess pollution. The company
14012-521: Was also introduced for the 1960 model year as a distinct brand. In the U.S. market, Valiant was made a model in the Plymouth line for 1961 and the DeSoto make was discontinued in 1961. With those exceptions per applicable year and market, Chrysler's range from lowest to highest price from the 1940s through the 1970s was Valiant, Plymouth, Dodge, DeSoto, Chrysler, and Imperial. From 1963 through 1969, Chrysler increased its existing stakes to take full control of
14136-547: Was also to pay affected consumers up to $ 280 million and offer extended warranties on such vehicles worth $ 105 million. The total value of the settlement was about $ 800 million, though FCA did not admit liability, and it did not resolve an ongoing criminal investigation. In February 2024, Chrysler unveiled a concept for its first electric vehicle, the Chrysler Halcyon , a battery-electric sedan. As of 2022 , management positions of Stellantis North America include: Chrysler
14260-531: Was among the highest of the OECD countries from 1984 to 1986, although growth was by far strongest in Ontario and Quebec. Throughout the 1970s, Japan had the world's third largest gross national product ( GNP )—just behind the United States and Soviet Union—and ranked first among major industrial nations in 1990 in per capita GNP at US$ 23,801, up sharply from US$ 9,068 in 1980. After the relatively mild economic slump that
14384-668: Was an adjunct professor at Wayne State University for many years, teaching labor relations and labor history . A major research and study center, the Douglas A. Fraser Center for Workplace Issues, was named after him. Fraser received The International Center in New York's Award of Excellence for his significant contributions to life in America. Douglas Fraser died on February 23, 2008, of complications from emphysema at Providence Hospital in Southfield, Michigan . His life and professional career
14508-435: Was below 2.5 million; by early 1989, it fell below 2 million. By the end of 1989, it was just over 1.6 million, almost half the figure of three years earlier. However, the unemployment figures did not include benefit claimants who were placed on Employment Training schemes, an adult variant of the controversial Youth Training Scheme , who were paid the same rate of benefit for working full-time hours. Other incentives that aided
14632-582: Was brought in to turn the company around, and in 1979 Iacocca sought US government help. Congress later passed the Loan Guarantee Act providing $ 1.5 billion in loan guarantees. The Loan Guarantee Act required that Chrysler also obtain $ 2 billion in concessions or aid from sources outside the federal government, which included interest rate reductions for $ 650 million of the savings, asset sales of $ 300 million, local and state tax concessions of $ 250 million, and wage reductions of about $ 590 million along with
14756-426: Was deeply influenced by the Great Depression . His father was out of work for long periods, and he admitted that the poverty and social disorder that he witnessed changed his life. He dropped out of high school when he was 18, worked in a machine shop , and took several jobs in the automobile industry. Fraser eventually found work as a metal finisher in one of Chrysler's DeSoto factories, where he became active in
14880-423: Was eventually adopted by the auto industry worldwide. The Maxwell brand was dropped after the 1925 model year, with the new, lower-priced four-cylinder Chryslers introduced for the 1926 year being badge-engineered Maxwells. The advanced engineering and testing that went into Chrysler Corporation cars helped to push the company to the second-place position in U.S. sales by 1936, which it held until 1949. In 1928,
15004-493: Was named DaimlerChrysler Motors Company LLC, with its U.S. operations generally called "DCX". The Eagle brand was retired soon after Chrysler's merger with Daimler-Benz in 1998 Jeep became a stand-alone division, and efforts were made to merge the Chrysler and Jeep brands as one sales unit. In 2001, the Plymouth brand was also discontinued. Eurostar also built the Chrysler PT Cruiser in 2001 and 2002. The Austrian venture
15128-526: Was replaced by John Elkann and Michael Manley, respectively. As a result of ending domestic production of more fuel-efficient passenger automobiles such as the Dodge Dart and Chrysler 200 sedans, FCA US elected to pay $ 77 million in fines for violating the anti-backsliding provision of fuel economy standards set under the Energy Independence and Security Act of 2007 for its model year 2016 fleet. It
15252-487: Was so poor that his father, who worked at a brewery, would sometimes fuel the family stove with stolen whiskey. Samuel Fraser moved to Detroit, Michigan , while his son was still a young boy, in 1922. Samuel, his mother, Douglas, his sister, and his brother sailed to New York City aboard the SS ; Cameronia and were inspected at Ellis Island on April 23, 1923. They travelled to their new home in Detroit by train. Douglas
15376-487: Was sold to Magna International in 2002 and became Magna Steyr . The Voyager continued in production until 2007, whereas the Chrysler 300C , Jeep Grand Cherokee , and Jeep Commander were also built at the plant from 2005 until 2010. On May 14, 2007, DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management , L.P., thereafter known as Chrysler LLC, although Daimler (renamed as Daimler AG ) continued to hold
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