REPORT: UAW backs Chrysler-Fiat partnership
According to The Detroit News, the United Auto Workers is giving its blessings to a potential Chrysler-Fiat tie-up. Chrysler honcho Bob Nardelli earlier pegged the possible union as a $10 billion bonanza for Chrysler, since the Pentastar would save money on developing a range of platforms, engines, and cars. The UAW's interest is, of course, the job savings: the partnership has been said to be worth 5,000 jobs that might otherwise be lost.
But with current timelines, the question is where Chrysler and the UAW will be by the time such a partnership gets to the next stage. Fiat expects to complete its due diligence of Chrysler by the end of this month. But by that time, Chrysler will need to have secured concessions from the UAW and bondholders in order to get additional money from the U.S. government. Whether it will get the concessions from both parties – and what the government will do when it comes time to write a check – are all things that remain to be seen.
[Source: The Detroit News]
Reader Comments (Page 1 of 1)
Aprime 12:31PM (3/20/2009)
Oh wow you guys.
You needed a Detroit News report to confirm this?
Have you even bothered watching that Nardelli video you posted earlier?
lol...
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BigMcLargeHuge 3:52PM (3/20/2009)
I do like the graphic!
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Dude 12:35PM (3/20/2009)
Hello FAIL!
Here's your sign.
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xtasi 12:41PM (3/20/2009)
Getting Chrysler access to nice small cars is good. I like Fiat interiors. The perception of both Chrysler and Fiat doesn't scream "reliability". While both have made strides in quality, perception has a long way to catch up. The Fiat Bravo would be nice
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Bloke 12:49PM (3/20/2009)
Chrysler's likely to benefit far more from this deal than Fiat -large Fiats just don't sell.
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Luis 12:57PM (3/20/2009)
I think Chrysler will be out of business before they sell a single Fiat in the US. The dealer network may be used to sell Fiats though.
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Steve Lopez 1:12PM (3/20/2009)
I don't think Chrysler will fold.
In my opinion I think it will do well. Unless, top management gets stupid again.
Remember, Fiat has an alliance now with Peugeot and Citroen. All these automakers can benefit by all this.
Chrysler needs to improve the quality of its products. When it was with Mercedes they had issues with their own vehicles let alone Chryslers. I believe that this alliance can help Chryslers comeback.
I think it will be a good idea. Global marketing for Chrysler and entry to the US market for Fiat and probably Peugeot and Citroen. If they decide to that with Fiat.
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BigTeebo 1:27PM (3/20/2009)
Great, we have mom in law's approval!
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MajorGeek 1:49PM (3/20/2009)
Hmmm, maybe it IS a bad idea then.
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another_one 1:57PM (3/20/2009)
If the UAW approves does this = bad for the company?
I wonder...
Fiat 500 is a cool little car
(as is the Challenger)
But I can afford neither so it matters little.
patrick clement 2:25PM (3/20/2009)
I don´t care who they go together with, even if it is the "Fix It Again Tony" brand, as long as the Challenger and the V8 stays in production.
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Tony 5:25PM (3/20/2009)
AY! Itza not Tony, itza Antonio to you okay. You betta watcha who you messa round. SI?
Rufus 3:02PM (3/20/2009)
I imagine whoever gets paid to fix those things would make a fortune.
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Jeff 4:23PM (3/20/2009)
Run, Fiat, run.
I just can't see any benefit for Fiat to get in bed with Chrysler, other than inheriting an established dealer network. Even then, Fiats sharing floorspace (and sales personnel... shudder) with Chrysler's wonderful products is a laugh. Much better to invest the money that would be thrown at Chrysler into establishing shiny new dealerships in key markets. Chrysler brings nothing to this table.
Things get interesting if Fiat is considering bringing some production here, since they'd have an existing and under-utilized factory infrastructure. Thanks to the weak dollar, US-produced Fiats could be a bargain on both sides of the pond.
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jamie 4:39PM (3/20/2009)
I can't for the life of me figure out what FIAT sees in Chrysler.
Chrysler gains big time with ready to roll small car technology and they have the production facilities to do so.
FIAT would be inheriting a lot of 'ill will' that it does not need to launch their products here in America. Sergio Marchionne would be wise to reconsider the plight his fledgling new enterprise could be facing.
FIAT would be much better off scooping up highly praised Saturn's dealership network and possibly the Springhill TN manufacturing facility from GM. That would fit well with the Alfa Romeo and Ferrari stores. FIAT does not need to be another bloated dealership ship.
Chrysler's manufacturing facilities are a worthy consideration, but their dealers are not. It looks as though Chrysler may shut down their Canadian ventures (Brampton and Windsor) and then perhaps FIAT could scoop those up for a song. Yeah, the CAW will be short changed in the whole affair and likely without a leg to stand on either. Busted.
David W. 4:11PM (3/21/2009)
Is there anyone who really wants either of these company's cars?
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