Chrysler's savior? Kerkorian stresses his desire to partner with the UAW
As 4,312 hourly Chrysler workers in Canada and the US accepted early retirement and buyout plans, Kirk Kerkorian released a statement again asserting his desire for a "true partnership" with the UAW and Chrysler management that would entail "equal sharing in the 'risks and rewards'" of a sale to his company, Tracinda. While acknowledging that a successful purchase by Tracinda couldn't (or at least, shouldn't) happen without all parties involved welcoming the deal, Kerkorian calls his plan for the company a "transformation" and claims that it takes everyone's best interests into account.
As expected, his public jump into the foray has flushed more details out from other bidders. Magna International, the parts supplier, had apparently registered a bid of $4.7 billion, and according to UAW President Ron Gettelfinger the other bidders have already approached the UAW about equity partnership. The UAW has not yet talked to Tracinda, and he made no comment about whether the union even wants to be an equity partner. With respect to all of the bidders, it is unclear how much the union would be expected to give up in wages and health care in return for just how many board seats and just much equity ownership. With new labor contract negotiations coming up, the UAW has quite a number of possible outcomes to consider.
DaimlerChrysler and its investment adviser, J.P. Morgan, will open deeper discussions with bidders next week.
[Source: Detroit News]
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Reader Comments (Page 1 of 1)
doug 8:30AM (4/08/2007)
So these bidders expect the UAW to give up pay/benefits in exchange for shares in a faultering business??? Good luck with that.
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Buckus 9:02AM (4/08/2007)
The UAW is a cancer on the America Auto Industry. They prevent the manufacturer's from adjusting to declining demand and keep employees paid far more than their job should. Now, I'm all for making $40 an hour to bolt on some wheels, but obviously there are alot of positions inside the factories that are overpaid.
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whofan 9:08AM (4/08/2007)
Employee ownership of Chrysler could be a great thing. It worked well for Harley Davidson.
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Ralph 10:02AM (4/08/2007)
The UAW has much to loose by agreening to an equity ownership deal for Chrysler. In effect, they would both be loaning money to effect the buy-out of Chrysler by someonne else and simultaneously undercutting their bargaining position with GM and Ford over similar "legacy" issues. The leadership of the UAW has evinced absolutely no level of vision for the future, always focusing on the near-term. So, there seems no reason to believe they will figure out that restructuring the industry to give it a future is really in their interests.
It's also impossible to see why anyone would be willing to trust Kerkorian in any deal.
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Tool 10:20AM (4/08/2007)
I think whoever ends up with a stand-alone Chrysler will look back at a major equity agreement with the UAW as the stupidest f*cking thing they ever did . . . if they make an agreement now to shore-up these health care costs.
Who would want the stinkin' thinkin' of the UAW as a so-called "equal" business partner?
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Aaron 11:43AM (4/08/2007)
Before anybody gets too excited, we must consider Kerkorian's 1995 threatened leveraged buyout that set off the whole situation leaving the Bobs (Eaton and Lutz) losing Chrysler to the Germans...Before anybody gets excited [again] lets see if Kerkorian can actually come through with the money...what does Bear Stearns' Ace Greenberg have to say?
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John Cressy 2:18PM (4/08/2007)
I would ask can Chrysler survive Mr. Kerkorians demise. A few years ago there was a guy named Paul Kalmanowitz. He owned three breweries on the west coast. He started buying up other brewing operations late in his life. Falstaff,Pabst,Heilemans,Strohs,and over a hundred other labels he aquired and then died. Mr. Kerkorian is 89, shouldn't he be kicking back in Florida waiting to get recalled.
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RobinCheddarHeader 2:16PM (4/08/2007)
Let's see now.....let's compare last name Kekorian vs. KeVorKian? Hmmm....maybe "Dr. Death" is just the guy that Chrysler needs right now? Or is it GM & Ford that sent the "good Dr." in for the kill? I also have to agree with the post questioning UAW "wisdom" & track record in running a business....no brainer to me.
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BOB 3:30PM (4/08/2007)
VERY SIMPLE -- will Union leadership be strong enough to make sure there are jobs for workers still employed, or will the retirees and the total a-holes in the membership stop it?
NOT VERY SIMPLE -- if Kerkorian gets Chrysler at a more reasonable labor cost, GM and Ford UAW will be under the gun to match it. Now that GM is starting to look less sick, this does not look so easy.
VERY OBVIOUS -- there MAY be some time left for the Union to decrease costs, so that the US makers will continue to produce, but there is not much time.
NOT SO OBVIOUS TO ALL -- it looks like GM is covering itself as an international producer, including China, planning to stay in business with offshore sourced vehicles, if necessary.
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throwback 7:05PM (4/08/2007)
Does the UAW really belive Kirk?
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whathe? 10:36PM (4/08/2007)
Check big Kirk's record with buying and selling MGM several times and the pattern of his other investments isn't about making the companies viable beyond what makes him money. He's more a short- termer. Everyone keep buying stuff from his Costco enterprise as a show of support. lol.
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ANWAR ALI SHAIKH 4:13PM (4/11/2007)
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MY BIO DATA IS HERE:-I AM ANWAR ALI SHAIKH. DATE OF BIRTH 01/01/1971 GENDER:-MALE OCCUPATION &BUSINESS:-POWER OFCOMMAND .Research,Strategy. & NATIONAL SECRET AGENCY. MY CONTACT E-MAIL:- NATIONALSECRETAGENCY@YAHOO.CO.UK &POWEROFCOMMAND@HOTMAIL.COM FRESH PASSPORT NUMBER : KF082312. MY BANK ACCOUNT : 5453-5 ,HABIB BANK LTD PAKISTAN,BRANCH 1931,KHAIRPUR NATHAN SHAH,DISTRICT DADU,SINDH ,PAKISTAN. MY CONTACT ADRESS:-AB133 SHAIKH MUHALLA .KHAIRPUR NATHAN SHAH.DADU.SINDH.PAKISTAN. POSTCODE:- 76260 WELL COME MY ALL SINCERE,AND MY NETWORKS TO ACTION ON BEST FUTURE STRAGEY. GOOD LUCK. DAWN ANWAR ALI SHAIKH.
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ANWAR ALI SHAIKH 2:19PM (4/11/2007)
*NATIONAL SECRET AGENCY* DEAR ALL SINCERE FACT OF MY NETWORKS COMMAND ON WORLD ACTION BEST OF UTILISE CONCERN LAWS OF COUNTRY AND UTILISE SECRET COMMAND IN ACTION ON TIME RECOVER BEST FUTURE RESULTS.
MY BIO DATA IS HERE:-I AM ANWAR ALI SHAIKH. DATE OF BIRTH 01/01/1971 GENDER:-MALE OCCUPATION &BUSINESS:-POWER OFCOMMAND .Research,Strategy. & NATIONAL SECRET AGENCY. MY CONTACT E-MAIL:- NATIONALSECRETAGENCY@YAHOO.CO.UK &POWEROFCOMMAND@HOTMAIL.COM FRESH PASSPORT NUMBER : KF082312. MY BANK ACCOUNT : 5453-5 ,HABIB BANK LTD PAKISTAN,BRANCH 1931,KHAIRPUR NATHAN SHAH,DISTRICT DADU,SINDH ,PAKISTAN. MY CONTACT ADRESS:-AB133 SHAIKH MUHALLA .KHAIRPUR NATHAN SHAH.DADU.SINDH.PAKISTAN. POSTCODE:- 76260 WELL COME MY ALL SINCERE,AND MY NETWORKS TO ACTION ON BEST FUTURE STRAGEY. GOOD LUCK. DAWN ANWAR ALI SHAIKH.
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