New contracts for the United Auto Workers union that actually help save money for the Big Three domestic have been wrapped up for some time, but $100/barrel oil and continually despressed housing market are contributing to tough times for U.S. automakers. Those harsh realities don't seem to be getting UAW top dog Ron Gettelfinger down, though, as he likes the future of Ford and Chrysler. Union Ron acknowledges that the next six months will be tough, but once the new contracts begin taking effect, Detroit will have a lot more cash for future vehicle development.

Automotive News sites analyst predictions of $1,000 savings per vehicle that could give Ford $2.4 billion per year and Chrysler $2.0 billion per year to fund their respective turnarounds. Gettelfinger sees both domestics putting the money back into vehicle development, which would mean more and better new product. Although Gettlefinger feels Cerberus will invest money into Chrysler, he seems to think Ford is in better shape saying that it especially has a bright future. Hopefully we'll see reason for hope next week at the 2008 Detroit Auto Show, as both Ford and Chrysler have the chance to show the world what they have up their sleeves for the coming years.

[Source: Automotive News]

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