Big surprise, the United Auto Workers union does not intend to be majority owner of the New New Chrysler for very long. Outgoing UAW president Ron Gettelfinger confirmed in a press conference yesterday that the union's Voluntary Employee Beneficiary Association (VEBA) will likely sell part or all of its 55% stake in the newly formed automaker once its stock appreciates, that is, if its stock appreciates.
And why would the UAW want to keep its shares? Despite owning a majority of the company, the UAW's shares are nonvoting and they may only get one seat on the company's board, if that. The sole purpose of the VEBA is to fund retiree healthcare, not run an automaker, so ditching its shares at some point to replenish the fund's coffers sounds like the right thing to do. The funny thing is that before the VEBA was even set up, both General Motors and Ford wanted to fund their contributions partly with company stock instead of cash. Looks like they may get their wish if Chrysler's situation is anything to go by.

[Source: Automotive News - Sub. Req.]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2015 Toyota Highlander
    MSRP: $29,765 - $44,140
    2015 Jeep Grand Cherokee
    MSRP: $29,995 - $64,895
    2015 Honda Accord
    MSRP: $22,105 - $33,630
    2015 Honda Civic
    MSRP: $18,290 - $26,740
    2015 Mazda Mazda3
    MSRP: $16,945 - $25,545
    Share This Photo X