The April 30th deadline to reorganize looms larger by the second, and Chrysler is scrambling to make deals that could theoretically help it stave off a bankruptcy filing next week. For that to happen. Chrysler needs to get concessions from labor unions and lenders that make the financial situation palatable enough for Fiat to step in and make the automaker "financially viable" in the eyes of the President's auto industry task force. To that end, it appears that the contentious situation north of
It boils down to this: In 12 days, Chrysler's fate is likely to be sealed, one way or another. Both the United States and Canadian federal governments have told the automaker that in order to get continued funding, it must restructure dramatically. After consulting with his task force on the auto industry, President Obama made it abundantly clear at the end of March that this meant a Fiat deal needed to be in place within 30 days, otherwise it's basically curtains for Chrysler as we all know it.
To ensure long-term viability, General Motors has pledged an arm and a leg (and maybe an eye) to satisfy conditions imposed by the federal government after the automaker received billions in taxpayer-funded loans. In addition to reducing debt and condensing the number and type of vehicles it produces, GM has promised to revamp labor contracts -- not an easy task. With that in mind, GM is entering historic talks and negotiations this week with the United Auto Workers, bondholders, dealers and oth
Buzz Hargrove isn't mincing words about his opinion of Chrysler LLC's strategy. Calling the decision to send the Magnum and Pacifica models out to pasture and cut shifts and jobs at the Brampton, Ontario plant "stupid," Hargrove has said the Canadian Auto Workers aren't interested in the type of concessions the UAW recently agreed to. While the UAW is allowing new hires to be given a lower pay level, as well as taking on a health care trust fund, the CAW will be having none of that, according to
It's amazing how quickly one's view of things can shift when facing an uncertain future. Such is the case for members of the Canadian Auto Workers union at the Chrysler Group's Brampton, Ontario plant. The union there has "overwhelmingly" voted to accept pay cuts and the outsourcing of some janitorial jobs not one month after rejecting the concessions put forward by Chrysler. The pay cuts in question are actually "premium pay" that was negotiated by the unions during better times. It amounts to
Chrysler no doubt felt a little burned by the United Auto Workers Union after being told it would receive no concessions for health care like the ones offered to both General Motors and Ford. At the time, the UAW cited the Chrysler Group's better financial health as the reason for the snubbing, but apparently the automaker's $1.5 billion loss last quarter and its expected loss of $1.2 billion for the year is enough to convince UAW president Ron Gettelfinger (shown at right with then Chrysler Gro
UAW President Ron Gettelfinger is apparently done being pushed around by the domestic auto industry. Despite having given landmark cost-saving concessions on health care to both General Motors and Ford, Gettelfinger indicated to Reuters the same offer would not be extended to The Chrysler Group. The UAW considers Chrysler to be in a better financial state than GM and Ford, and therefore has disregarded the time honored tradition of pattern bargaining and not accepted Chrysler's latest concession