UAW Backing Suggests Cerberus's Long-Term Commitment to Chrysler
Bradley Rubin, an auto trading specialist at BNP Paribas, told CNBC’s “Morning Call” that he’s surprised the United Auto Workers Union supports Cerberus Capital Management’s deal for Chrysler.
UAW President Ron Gettelfinger said, “The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler.”
On Monday, DaimlerChrysler said it agreed to sell a majority state in U.S. automaker Chrysler to private equity group Cerberus Capital Management for $7.4 billion.
Rubin said Cerberus appears to be in the deal for the long term.
“Typically, private equity is in it for the short run to make the quick buck,” Rubin said. “It seems here that they’ve put in a longer commitment. In evidence to that (is) UAW President Gettelfinger agreeing to (the deal) as the best of many options. I don’t think (Cerberus) is going to break up the company in the next three to four years.”