Autoblog

UPDATE: Statement from Chrysler Vice Chairman and President Tom LaSorda added after jump. One detail LaSorda mentioned was that Chrysler would be establishing an "independent retiree health care trust" like the GM is pumping billions into. The amount Chrysler will contribute is still unknown.

Photo by Bill Pugliano/Getty

Whaddya know? Apparently Forbes knew something everyone else didn't, as the UAW has just released a statement saying that it has reached a tentative agreement with Chrysler LLC on a new four-year contract. All of the 49,000 some UAW workers who walked off the line will return to building cars at their next available shift. No details of the arrangement have been released yet, but speculation as to what it entails has probably already started. We'll see if the UAW finds its new Chrysler contract a harder sell to the rank and file than the GM contract that was just officially ratified today.

[Source: Automotive News, sub. req'd]

UPDATE: A more fleshed out report from Forbes was published at 4:25 PM EST that still maintains the strike is over. The new report claims a tentative agreement was in UAW president Ron Gettelfinger's hands an hour after the strike started. This report has not been confirmed by other sources.

click above pic for more images from the UAW's strike against Chrysler

We're not sure how a mistake like this happens. Forbes published a report online at 1:45 PM EST claiming that "Chrysler and the United Auto Workers union have reached a tentative agreement on a new labor deal," even going so far as to state that the strike ending had been confirmed by both the company and union officials. Of course, Forbes was unable to provide any details as to what the agreement contained, most likely because such an agreement doesn't exist.

Neither Automotive News, The Detroit News nor the Detroit Free Press have reported that the strike has ended. Automotive News, in fact, reported at 3:42 PM EST that negotiators have left the table for the day and not even scheduled another sit down. The Detroit Free Press, meanwhile, has already published a counter-story denying Forbes' claim that the strike is over.

We're entirely puzzled as to where this bogus Forbes report came from. Our honest guess is that it was written in case the strike actually did end quickly today and was published on Forbes' servers where it was then found by an intrepid member of the GM Inside News forums. We'll never know for sure, though.

[Source: Forbes via GM Inside News]

Here we go again. CNN is showing live video of UAW workers walking off the job at Chrysler various plants across the country. Both the Detroit Free Press and The Detroit News are also confirming that an agreement has not been reached and the strike has begun. We'll bring you more updates throughout the day as they happen.

The UAW strike against Chrysler involves around 49,000 people, compared to the some 73,000 union workers involved in the strike against General Motors last month.

Twenty-four Chrysler plants across the nation are involved in the strike, though according to the Detroit Free Press, one plant in Toledo is not covered by the national agreement and it's not known if those workers will join the strike.

Chrysler's famously large inventory of vehicles could finally work in its favor during the strike. Though around 3,000 cars per day will go unbuilt at first, the automaker should be able to meet demand for its cars in the near future. Hot-selling cars like the Jeep Wrangler, however, could be affected first. Analysts are also concerned how the strike will affect the launch of the Dodge Grand Caravan and Chrysler Town & Country minivans, two very important vehicles to Chrysler's bottom line.

UPDATE 4: Images of the strike from Getty photographer Scott Olson have been published in a gallery.

UPDATE 3: 9,000 Canadian auto workers will be affected by the strike within less than 24 hours.

UPDATE 2: Five Chrysler plants were not involved because they happen to be idled right now.

UPDATE: Automotive News reports that 31 plants and technical centers are involved in the strike, while the work stoppage will eventually shut down Canadian facilities within the first day.

[Photos: Scott Olson/Getty]

As we reported earlier, the UAW is continuing its negotiation talks with Chrysler LLC for a new contract, having chosen the Auburn Hills-based automaker as its next dance partner after reaching a tentative agreement with General Motors on September 26th. The UAW's contract with Chrysler LLC expired on September 14th, but the union extended the deadline for Chrysler (and Ford) while it was focusing on negotiations with General Motors. As we all know, the UAW chose to strike against GM, and it may do the same to Chrysler if a tentative agreement isn't reached by tomorrow Wednesday. Sometime yesterday the union gave Chrysler a required 72-hour notice that the extension would end. While Bloomberg didn't mention at what time Wednesday the extension would expire, we're guessing 11AM EST, which is the same time of day the UAW chose to begin its strike against General Motors on Sept. 24th.

Though the UAW hopes to use its agreement with GM as a template for one with Chrysler, there are additional factors to consider. First and foremost is the fact that Chrysler was not given concessions on retiree health care back in 2005 that were given to both GM and Ford. Even if a VEBA account like the one in the UAW-GM contract is agreed upon, chances are retirees will be forced to accept concessions in their level of coverage to make up for the slight two years ago.

Of course, everyone is curious how well Chrysler's new owner, Cerberus Capital Management, is working with the UAW during these negotiations. Current Co-Vice Chairman of Chrysler, Tom LaSorda, who has seen his title dwindle down from CEO since the purchase, has an opportunity to shine in this talks. Handling negotiations with the UAW is part of his new job description, and considering Chrysler's stumble in the marketplace under his stewardship, now would be a good time for him to prove his worth to Cerberus.

[Source: Bloomberg, The Detroit News]