After months of speculation, the Chrysler sale happened without too much fanfare on Monday morning, as Cerberus came out as the top bidder, and several potential investors came away empty-handed. One of the few groups vying for control of Chrysler was its own employees, and Automotive News is reporting that those UAW members feel they never got a real chance.
Members of Toledo's Jeep plant tried to get together a bid for the beleaguered Chrysler group, but they felt as though the folks in Stuttgart and Auburn Hills stalled in order to keep the workers at bay. The members were also angered by Ron Gettlefinger's comments that the sale to Cerberus was "in the best interest of the membership" only a few weeks after stating that the UAW was opposed to any sale to a private equity group. President of the Chrysler Employee Buyout Committee (CEBC) Michele Mauder also criticized Daimler for basically paying $650 million to get out from under Chrysler's liabilities. CEBC claims that they aren't as upset by the fact that they didn't win the right to purchase Chrysler as they were that they never got a fair chance to bid.
[Source: Automotive News - sub. req'd]
In the end, we have a hard time imagining a scenario where the UAW would come away with ownership of the Chrysler group. White collar employees wouldn't want to be a part of a company where the union had 100% control, and few companies would invest capital in another company that would be more interested in jobs than profits.
Reader Spy: Chevy Volt caught on set of Transformers 2
Spy Shot: Production interior of Chevy Volt (maybe)
Rumormill: Lexus LF-A... Stillborn?
Ford reveals 2010 Mustang badge
REPORT: Chrysler may sell Dodge Viper rather than kill it
In the Autoblog Garage: 2009 Nissan Murano
In the Autoblog Garage: 2009 Dodge Journey R/T
In the Autoblog Garage: 2008 Jeep Compass Sport 4x2
In the Autoblog Garage: 2008 Porsche Carrera S
First Drive: 2009 Honda Fit Sport
Reader Comments (Page 1 of 3)
bmoredlj @ May 15th 2007 12:41PM
No more Dr. Z commercials...that's all that matters.
JC3 @ May 15th 2007 12:47PM
My friends think the new owners are going to chop it up and sell it off.Any reassurance from the new owners as to their plans?
jw @ May 15th 2007 12:49PM
THE UNION WOULD TUBE CHRYSLER!!!
ahkmel @ May 15th 2007 1:05PM
Maybe those in the union who oppose the sale should strike, or just quit. That's what people in unions do, right? They never actually work, that's for sure.
The Other Bob @ May 15th 2007 1:09PM
"THE UNION WOULD TUBE CHRYSLER!!!"
Becuase management has done such a great job?
One thing I have noticed because I know a lot of autoworkers, no matter what you think of their union, is the pride they take in their product.
Employee ownership is a powerful thing, which has sucessfully happened elsewhere. It's too bad they did not get the opportunity, it would have been a great experiment.
The Other Bob @ May 15th 2007 1:11PM
"They never actually work, that's for sure."
I am guessing you sit on your ass at a desk all day for a living. You wouldn't last a minute working on a line.
Biff Baxter All American @ May 15th 2007 1:19PM
The only thing worse than a UAW organized plant is a UAW owned plant.
The UAW should be creating and planning an exit strategy. Because, like it or not, they will cease to exist within 10 years.
mr.ed @ May 15th 2007 1:25PM
Cerberus is a Republican criminal gang that will strip as many assets as possible and leave the bones to dry in the Michigan sun. Lube up, guys. They're puttin' on the cock rings now.
Calebe @ May 15th 2007 1:33PM
Bring back the Straight six.
End of rant
Nick @ May 15th 2007 1:40PM
Maybe the purchase of chrysler by the UAW and its subsequent failure would teach the union members a lesson about the difficulties in running an automotive enterprise. Oh wait, that would mean assuming some of the blame for problems that they've brought on themselves. Sorry about the rant, former 'white collar' Ford employee here who saw firsthand the UAW's obstructionist tactics which were killing the hands that were feeding them.
Kumar @ May 15th 2007 1:44PM
Maybe Porshe is still looking to buy a car company?
Seriously though, this may be the beginning of the end for unions at Chrysler. Think the wal-mart of car companies.
jordan @ May 15th 2007 1:45PM
The simple question is: could they beat the offer Cerberus made? Honestly, as much as I'd like to see that happen, I don't believe they could. No, maybe it wasn't fair that they didn't get a real chance to bid and, no, it's probably not in the company's best interests (as already pointed out) to sell to a private party, but welcome to capitalism...sell to the highest bidder.
phatj @ May 15th 2007 1:45PM
"One thing I have noticed because I know a lot of autoworkers, no matter what you think of their union, is the pride they take in their product."
So that's why American cars are so relaible...
The UAW needs to seriously go away.
phatj @ May 15th 2007 1:47PM
"One thing I have noticed because I know a lot of autoworkers, no matter what you think of their union, is the pride they take in their product."
So that's why American cars are so relaible...
The UAW needs to seriously go away.
Quickreach @ May 15th 2007 1:48PM
I'm no oracle, but here's what I predict...
- Cerebrus keeps Chrysler Financial.
- Cerebrus merges Chrysler Financial with GMAC
- Cerebrus sells manufacturing arm to Magna
- Month 18 Wolfgang takes over as CEO
FLR @ May 15th 2007 1:52PM
From what I've read, Cerberus will probably bundle Chrysler financial and it's 51% stake of GMAC together. The rest of the company will probably sold off.
I agree with above, Jeep is the most valuable brand. The new plant they built in Toledo is extremely flexible and valuable to another company.
Watch the Chinese or Indian's bid for it. I hope GM buys it to return it to it's former glory as an American company.
Richard @ May 15th 2007 1:55PM
Biff Baxter All American wrote (No. 7) "The only thing worse than a UAW organized plant is a UAW owned plant."
So you believe that the UAW wanted to buy the company just so it could put its members out of work? I guess those evil wage workers take a backseat only to suicide bombers in their zeal to wreck havoc on American manufacturers. Please.
Mike @ May 15th 2007 1:56PM
"Cerberus is a Republican criminal gang"
damned roght wing conspiracies I tell ya! BDS what? watch out for the black helicopters....
"it's probably not in the company's best interests (as already pointed out) to sell to a private party"
Wrong. It isn't in the best interest of the UAW, it IS in the best interest of the company.
Quickreach: that's not that bad of a timeline at all... the problem is the separation of GMAC and ChryFi. Chrysler Financial is solely automotive, GMAC has their fingers in every financial/investment/loan business there is. Keeping that separation will be difficult, if not impossible.
iQuack @ May 15th 2007 1:58PM
Inglorious end to Mercedes' attempt under Schrempp to go global via interests in both Mitsubishi and Hyundai, as well as Chrysler.
Seems that bigger isn't always better and Merecedes' return to its roots should result in improved cars.
Cerberus will make decisions based on sound economics and if that means weakening the UAW, so much the better.
jg @ May 15th 2007 2:00PM
'Bring back the Straight six.
End of rant
'
Buy a BMW. :)
Its amazing how right wing talk radio has ruined this country. People don't even think about issues anymore they just parrot the latest or oldest right wing talking points. Unions are not the problem in this country people. They are not the reason american car companies make crappy cars (neither is health care).
The right represents the people who OWN businesses and they hate unions because unions give workers power. They then use radio and FOX News as a club to beat you over the head that unions suck (usually by simply stating that liberals support unions), which makes folks hate unions, which sends us back to about 1906 to 1929, the glory years of the rich. "Sixteen tons and what do you get, another day older and deeper in debt." Open a history book instead of repeating what Rush said yesterday.