The United Auto Workers union is pushing Chrysler to sell 16.6 percent of its stock to investors in an attempt to establish the value of the shares. The UAW is currently locked in a lawsuit with Chrysler parent company Fiat over how much the Italian automaker should pay to buy shares from the trust fund. Last year, Fiat told the trust it intended to exercise its right to purchase 3.3 percent of the union's shares at issue. But the union contended the 54,154 shares were worth closer to $381 million instead of the $155 million Fiat offered.

Currently, the UAW owns 41.5 percent of Chrysler while Fiat holds 58.5 percent of the company. Currently, it's unclear whether the UAW could force Chrysler to put the shares on the open market. Doing so would be the first step toward a much-anticipated initial public offering. Chrysler has said it will comply with its shareholders agreement, and Fiat has echoed that tune. According to The Detroit Free Press, the UAW Retiree Medical Benefits Trust has declined to comment on the situation.


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
  • 10 Comments
      • 1 Year Ago
      [blocked]
      zoom_zoom_zoom
      • 1 Year Ago
      I don't think FIAT should give the UAW 1 cent for their shares.
      artso06
      • 1 Year Ago
      While I think the push towards public offering is great... UAW scares me and frankly I think should be dismantled. They have become a conflict of interest to many of these organizations and their workers. The UAW has grown into a large company, touting services that can be handle by the parent organization. There is to much UAW money involvement for their main prerogative to remain the "common interest" of the worker.
      Xi Gua
      • 1 Year Ago
      UAW is scared that if FIAT takes 100% of Chrysler than Sergio fires UAW and replaces them with normal workers.
        Alfonso T. Alvarez
        • 1 Year Ago
        @Xi Gua
        You have made many, many ludicrous comments - but this, this, is so far over the top that it deserves an award for stupidity that supersedes all of your previous trolling comments altogether! Normal workers?? Wow, that is so asinine that if defines understanding!
          tinted up
          • 1 Year Ago
          @Alfonso T. Alvarez
          Normal workers? That one could go either way so there is no reason to get but hurt. Maybe he was implying that UAW workers are great and that they'll get the boot for merely "normal" workers. Maybe he was suggesting that UAW workers are real hard workers, and that they will get replaced with "normal" work ethic employees. Oh wait, even YOU have negative thoughts towards the UAW.
      Drew
      • 1 Year Ago
      Worked out so well for GM investors the last go around, so why not stick it to future Chrysler investors? Down the road when the next Government/US taxpayer bailout happens again. The investor walks away and gets squat, UAW gets additional shares of the company and the US taxpayer picks up the tab "again". Surprise the UAW hasn't sued the US Government since the bailout hurt their investment numbers, "Ala AIG"
      Scr
      • 1 Year Ago
      Why would FIAT do that? They are trying to obtain as much of the stock as possible, as cheaply as possible. I wouldn't be surpirsed if they just took it private in a few years.
      Val
      • 1 Year Ago
      So the UAW thinks chrysler is valued at around $10 billion if i am reading this correctly. So for the small sum of $4 billion, the UAW can acquire FIAT's share of the company and hold 100% of chrysler... Fiat may or may not achieve any significant synergies with chrysler in the future, and they can use the money to concentrate on their european offerings, like design new models, pay for closing plants due to overcapacity and so on. And we will finally see what it's like for the workers to own their own company, the dream of noam chomsky. Sergio, think about it!
      gordan
      • 1 Year Ago
      Xi Gua take notes. I have to presume that your idea of normal workers are those who work in 'Right to work for peanut states' while their European counterparts will live longer, get free health care, 4 week vacations and a generous retirement.