You didn't want to cross paths with Canadian Auto Workers President Buzz Hargrove on Monday after he found out that Chrysler had been sold to the private equity firm Cerberus Capital Management. The CAW prez was absolutely livid, pissed even, that the CAW was never consulted, not even informally, about the deal. Well, Chrysler Corp. CEO Tom LaSorda and Cerberus CEO Stephen Feinberg met with Hargrove today to smooth things over. They guaranteed Hargrove in writing that no Canadian auto worker jobs would be lost as a result of the sale. We think "as a result of the sale" is the key phrase in that sentence, as there are plenty of other reasons one could imagine for reducing a workforce: slow sales, high material costs, etc.
Nevertheless, it appears Cerberus isn't planning to come in and dramatically reduce Chrysler's CAW or UAW workforces. Hargrove sounded particularly pleased that Feinberg seemed to know what he was talking about and expressed his company was in it for the long haul.
[Source: Automotive News, sub. req'd]
Subaru Exiga heading to production, teaser leaks out
Racer dies at Altamont 24 Hours of LeMons
VIDEO: Danica Patrick hits crew member on pit lane at Indy
Nick Hogan sentenced to 8 months in jail
Pontiac El Cami-"NO"
Future Classic: 1984 Chrysler Minivans
Autoline on Autoblog with John McElroy
First Drive: 2009 Volkswagen Jetta Sportwagen
Project Track Slut, Part One: Pick a weapon on the cheap
By the Numbers: April 2008
_thumbnail.jpg "Lamborghini Reventon unboxed in Las Vegas")
Reader Comments (Page 1 of 2)
JGN @ May 15th 2007 6:47PM
Chryslers survival depends on its ability to get competitive vehicles to the market place, any way it can. It's not just a matter of cutting costs, it's a matter of developing vehicles that people will buy and continue to buy.
I'm interested to see what will be done with the company. At this point in time, I'm pessimistic about the survival as a whole.
Brian @ May 15th 2007 7:06PM
I can see his frustrations. I hope he doesn't act to quickly though. He should wait to see what kind of deal is worked out with the Union. My Dad has worked for GM for almost 30 years now. I have been very worried for his job until GM starting turning things around. The Union was good to us when I was growing up. I have seen what other people have gone through when working in some non-union manufacturing jobs. Things are changing now though. In order to have a sucessful future Chrysler. Their is gonna have to be some give and take. If it ment me taking a bit of a cut to ensure my retirement I would. Health care is killing the American 3. I hope a good deal can be worked out with when GM/UAW contract ends.
Tool @ May 15th 2007 7:08PM
If anything, Chrysler would move more production to Canada because health care costs are significantly lower than here in the U.S.
Why do you think all the Big 3 have significant operations there?
On another note, if the new Chrysler is making all these promises to not change anything, why in the heck did Cerberus buy it in the first place? It seems like they are boxing themselves in with all these promises, when in reality, the new Chrysler needs to make more drastic changes.
AJR @ May 15th 2007 7:50PM
It is such a shocking (a good one at that) sight seeing the words Chrysler Corp. used in articles and titles again. I almost forgot what it looked like, but it sure is a sweet sight to behold. Thank goodness DCX will eventually be thrown away into the trash can of history.
Ok, now back to the story at hand.
Lithous @ May 15th 2007 8:00PM
Does Daimler keep all the truck companies like Detroit Diesel, Sterling, etc? Out of curiosity, which ones, if any, of those truck companies did Daimler get because of the merger?
Aprime @ May 15th 2007 8:16PM
Stop whining about unions, morons.
jckirlan @ May 15th 2007 8:22PM
Only one person did and rightfully so, idiot!
dakota @ May 15th 2007 8:27PM
"Out of curiosity, which ones, if any, of those truck companies did Daimler get because of the merger?"
None. Chrysler didn't own any of them. Only thing that Daimler gets now is the rebadged Ram, Sterling Bullet with the Cummins.
Bert @ May 15th 2007 8:36PM
Hey Tool,
this is why there are auto plants here. http://en.wikipedia.org/wiki/Canada-United_States_Automotive_Agreement
Chrysler could make all the gold-plated diapers they want, they will never have enough cowbell!
Solo Racer @ May 15th 2007 8:46PM
"4. e'ffing Union, to think that their that important, that they should have been involved. I hope that the 3 headed dog rips their e'ffing throats out!!!"
YEAH, HOW DARE THESE PEOPLE EXPECT A DECENT WAGE AND WORKING CONDITIONS.
Here's a little history, JD, the benefits and payments to retired workers were the carmakers' idea back in the 1970s.
And if YOU were so concerned about health care costs, where were you when alternatives were proposed to letting profiteering drug and insurance companies control it all?
Big Rocket @ May 15th 2007 9:31PM
#11 (Solo Racer): "...THESE [UAW] PEOPLE EXPECT A DECENT WAGE AND WORKING CONDITIONS."
Things would have been a lot better for the Big 3, if the union boys have been earning a *decent* compensation package. But no, the union parasites have been raking in an *indecent* compensation package. Here are the facts.
NY Times:
"On average, U.A.W. members at G.M and Delphi cost the equivalent of $67 an hour, including pay of about $27 an hour plus pensions and health care expenses."
http://www.nytimes.com/2006/03/23/business/23auto.html?ex=1300770000&en=57ea081b0a798618&ei=5088&partner=rssnyt&emc=rss
CNN Money:
"...the gap between Japanese and American carmakers' profits average out to about $2900 per vehicle... A big reason is the cost of labor..."
http://money.cnn.com/2007/01/26/news/companies/pluggedin_taylor_ford.fortune/index.htm?postversion=2007012611
#11 (Solo Racer): "Here's a little history, JD, the benefits and payments to retired workers were the carmakers' idea back in the 1970s."
Right. After the union parasites have gone on strikes to shut down the automakers' production lines, thus using financial sabotage to force the automakers to agree to any demand. That's blackmail.
#11 (Solo Racer): "And if YOU were so concerned about health care costs, where were you when alternatives were proposed to letting profiteering drug and insurance companies control it all?"
Once again, a UAW apologist blames someone else for the UAW's greed. Yes, healthcare is expensive. Yes, CEO's have exorbitant compensation packages. Yes, the Big 3's fixation on SUV's has come back to bite them now that gas prices are at historic highs in this country.
And yet, the average UAW worker still cost a lot more than his non-union counterpart, as the NY Times and CNN Money have shown. And this higher labor cost translates into a higher purchase cost for union-built domestic vehicles, which makes them less competitive.
It is precisely this uncompetitiveness for the Big 3 that has led to a reduction in sales, a reduction in market share, a reduction in production, and ultimately, a reduction in jobs. The UAW's own greed played a big role in the elimination of union jobs. The UAW is the disease, not the cure.
FrankTheCrank @ May 15th 2007 10:07PM
What does this mean for the Challenger?
I hope they don't cheap it out. I'm really looking forward to this car as a possible next purchase.
Barney @ May 15th 2007 10:35PM
"rebadged Ram, Sterling Bullet" It's ironical that Sterling was Ford before Daimler bought the rights to class 5 and up, from Ford.
JD @ May 15th 2007 11:21PM
Hey Solo Racer, you're either in the Union Management and KNOW how e'ffing corrupt it is. Or you're just some minion on the assembly floor to blind to see it.
Union Management DOESN'T care about ANYTHING but getting your dues and TELLING YOU WHAT TO DO and how their going to spend it.
I know people in Union management, but that's all hearsay.
By the way in the 70's, I was in GRADE SCHOOL.
Glenn @ May 15th 2007 11:35PM
Great news, granted it is a statment of intent only.These are almost crazy GOOD jobs, I wonder if the people who have them know the rest
of us (like me) work for about 25% of their pay, have longer hours, and way less benefits and job security. My job stress is also way
higher because I have severe sales targets (can loose even my some income or job)and they will go after me for even minor mistakes or poor judgement I make.
That said -- I'm jealous -- I wish there were more great jobs like the domestic car companies have.
It is really a sad thing when people praise the foreign companies etc and get mad at the domestic brands -- when that the better profitability of the foreign brands largely comes from giving the workers (ie society) less.
The other worry too, is that when the domestics used to make money, it stayed in Canada or the US -- not entirely, but to a good degree. The foreign brands almost all the profit goes back to the home country.
It depends on how you look at it. Consumer-wise, I understand why peole like foreign; but gosh we should really feel sad about loosing these dream jobs, and replacing them with lower quality ones.
person935 @ May 16th 2007 12:58AM
Bill:
This isn't the late 1800s or early 1900s. Times have changed. Unfortunately, people like you don't seem to understand this fact, so the big 2.5 is on it's way down thanks in part to the insanely good and expensive benefits given to the union workers.
Myself @ May 16th 2007 3:32AM
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/05/16/cnchrysler16.xml
Do not know if this went through the 1st time I posted( did not get the"you did it" message)....
Seems these guys can do pretty much what they want to do?
Big Mike Wood @ May 16th 2007 8:12AM
If you have a 40 hour work week, paid sick time, paid holidays, healthcare (in the U.S. anyway) and a non-lethal work environment, thank the unions.
It saddens me that so many citizens have such a tenuous grasp on recent American history. Of course we learned nothing from our past mistakes in Vietnam so I guess labor relations shouldn't be any different.
Biff Baxter All American @ May 16th 2007 8:17AM
The UAW is worse than bad, it is IRRELEVANT. Their opinon, approval, forbearance, whatever, is not worthy of even discussing. In 10 years they will be as good as dead.
If Solidarity House wanted to do something constructive, it could start fashioning an exit strategy from the industry along the lines that was created for Goodyear Tire. Assume all current and future health care and pension costs in return for a lump-sum buy-out from the car companies. Then all of America and the world would get to see "just how good things would be if the workers ran the place".
66coronet @ May 16th 2007 11:26AM
Like the first person said, "Chryslers survival depends on its ability to get competitive vehicles to the market place." Will Chrysler div anounce the sale of VW diesels in the US market in 5 vehicles that currently use them in over seas market? Will they also anounce MB diesels in all rear wheel & 4x4 drive vehicles, except what cummins is slated for?
Will they make diesel (plug in option with extra lithium battery pack) electric hybrids which also reduces diesel emissions?
They say it's too expensive to sell if it adds $5,K to $10,K to the price. I say offer it and you may find that with government tax cuts and fuel & maintenance savings may off set the price of the plug in diesel hybrid. Some people & businesses just want to have a vehicle that will travel under 10 (+/- 3 miles depending on driving habbits) miles (under 35mph)without the motor starting. That would get most people to the store and back without useing fuel. Then when fuel is needed, biofuel friendly motor during the summer time. Fleet use runabouts that go from building to building would bennifit from this too. Plug in at the building at each stop and recharge. More fuel savings for the company. If the company puts solar cells on their building roof and recharges battery packs for power storage, the electricity may be free to recharge vehicles and building lighting - except the price of the system.
Plug in diesel electric sprinter technology can also be used for dodge dakota for fleet use. In my opion the dodge dakota isn't used in fleets much do to the other companies supply vehicles that provide better fuel mileage with same or larger payload in bed. Plus in my opion, a dodge dakota with a pt cruiser like nose and cab would be a HOT selling vehicle. They want the fat fender truck to be edgy. I want it to be round agin, like the 2nd generation version. Just blend in the head light to the fender unlike the 3rd generation. 4th generation is better in blending into the fender, but what's with the silver outline around the headlight? It makes it look like the truck has glasses. It kinda makes it look ugly at first glance.