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Chrysler/Fiat, Canadian Auto Workers reach deal

04/24/2009, 10:30 PM

By Nick Aziz

The Canadian Auto Workers Union and Chrysler — along with its potential merger partner Fiat — have struck a significant labor agreement that will save the automaker $240 million per year in operating costs. The U.S. government has said it will only offer further loans to Chrysler if it partners with Fiat and reduces costs. Fiat has said it will only partner — and eventually merge — with Chrysler if unions and debtholders agree to concessions, so this is certainly a positive step.

“We are extremely grateful to the CAW leadership and to its hardworking members for their openness in this challenging environment to create a new strategy that will lead this company on a path to success,” said Al Iacobelli, Chrysler’s lead bargainer. “The tentative agreement also helps move the Company one step closer to a partnership with Fiat SpA.”

“We deeply appreciate the CAW leadership’s dedication and commitment to the process by reaching this tentative agreement. The negotiation process is never easy, especially in these historically challenging times,” Iacobelli added.

The agreement includes: the elimination of semi-private hospital coverage; the elimination of a one-time $3,500 vacation buyout negotiated in 2008; the elimination of clawback reimbursement through the SUB program; the elimination of employee car purchase and tuition rebate programs; an increase in the waiting period for sickness & accident benefits; and a reduction in the maximum dispensing fee for prescriptions.

“CAW members supported their union right through this process, rather than allowing themselves to be intimidated by crude threats,” said CAW President Ken Lewenza. “That has allowed us to bargain the very best agreement possible, imposing the minimum possible sacrifice on our members and their families, despite the incredibly tough times.”

In comments made to the Detroit Free Press, however, Lewenza was considerably less upbeat about the outcome. He characterized the negotiations as “the most torturous and unfair process imaginable.”

The CAW is expected to ratify the agreement over the weekend.

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04/25, 3:07 AM

posted by:

BuyUSA

What about the UAW?

04/25, 3:45 AM

posted by:

worst 3

why could they not just have started making them in American and give Americans the jobs and not the CAW

do these pay cut mean more affordable cars for the buyer

04/25, 3:58 AM

posted by:

MiniMan

I ultimately feel bad for anyone who works for Chrysler who would lose their job but Chrysler as a car manufacturer is worthless. The products (Sebring, Patriot, Compass etc), the build quality (better written as lack of quality) and their lack of ingenuity is completely due in part to misguided leadership and a lack of understanding or ignoring the needs of the customer. For anyone that works there all the best but I would never buy a Chrysler.

04/25, 4:46 AM

posted by:

BuyUSA

MiniMan, if Chrysler ignored their customers then why did they come out with the Challenger and the new Ram? Oh sorry…you drive a Mini. Not everybody wants to drive an unsafe little sh*tbox and look like a twinkle-toed import fruitcake in the process.

04/25, 5:24 AM

posted by:

JakeK66

MiniMan -

Your views are obviously misguided and short-sighted and stereotypical. BuyUSA has a good point in that there is good product that Chrysler has – The Ram, the Charger/Challenger/300, Jeep Wrangler, future Grand Cherokee, Grand Caravan and the Journey is a pretty good crossover for the money. True the interiors in some models suffer, but not everything is bad. Jim Press single handedly updated the interior of the Journey in the months before it was released and made the Patriot’s interior from last in 2008 to pretty nice in 2009. Given time improvement would soon occur with the rest of the lineup. Mini’s aren’t the model for great interiors if I recall with poor ergonomics everywhere. The management problems stemmed from the Germans as well, and guess from what nation who runs Mini?

04/25, 8:37 AM

posted by:

F50

I agree, Chrysler cars may not have the best interior, but that seat in the SRT8 Challenger is pretty damn comfy, and its roomy too. And also Chrysler is improving its interior’s, did you see the new Ram and the new Grand Cherokee?

04/25, 9:52 AM

posted by:

golfpunk

If our government and the Canadian government refused to give GM and Chrysler any money, you would be surprised at how fast labor, management and creditors would have made agreements and concessions.

04/25, 9:58 AM

posted by:

hangonbig3

Sounds like MiniMan and NMOFGM need to get together and dry hump.

04/25, 11:02 AM

posted by:

mayer_ray_nagin

… “Lewenza characterized the negotiations as “the most torturous and unfair process imaginable.”

Yeah well welcome to the real world, CAW.

04/25, 11:14 AM

posted by:

zoomzoomer

Way to talk out of both sides of your ass, Lewenza. Stop trying to save face.. I’m sure the majority of the CAW wouldn’t mind conceding semi-private hospitalization if it meant keeping their jobs.

04/25, 11:41 AM

posted by:

Ed103

The 300 is crap. People don’t buy it because it’s a well made car, but because they think it’s a status symbol. Of what? It looks slightly like a Bentley. If you recall, when they first launched, every 300 had their grills swapped to more match the Bentley’s front end. And now the 300 sales have slowed, so Chrysler is trying to figure out how to push them again. Honestly, of the three, Chrysler is the worst. One would have to blatantly lie to others and themselves to say otherwise.

04/25, 12:45 PM

posted by:

hangonbig3

Ed103….. Go nationwide and ask 500 used car managers what domestic car company has the most problem free used cars. It will overwhelmingly be Chrysler. If you have a good problem free used car, chances are when it was new it was not on the bottom of the heap. You just don’t like thier cars, that is a personal opinion. As for the 300…have you actually driven one? If you have, next time do it without your head up your…..you will likely have a better opinion.

04/25, 12:56 PM

posted by:

carstuff

Facts are that Chrysler is below average for dependability at 3 years. BUT not far from average. It is basically even with Nissan with a Nissan score of 2.2 vs. Chryslers 2.3. A wash. Honda is at 1.8. Again not a huge difference.

http://www.jdpower.com/corporate/news/releases/pressrelease.aspx?ID=2008115

Now at 3 months quality Nissan is at 1.2 (also industry average) and Chrysler at 1.4. Again not a heck of a lot of difference.

Our opinion are just opinions. Data is data.

04/25, 1:02 PM

posted by:

carstuff

a little more data:

” Warranty claims at Chrysler are at their lowest rate ever, with a 30 percent improvement in the last 12 months,”

Does not say Chrysler is a high quality brand but that there has been a big improvement.

04/25, 1:15 PM

posted by:

CanGo87

I wonder how many of the people here defending Chryslers lackluster and repetitive line up actually have one sitting in their driveway right now? The fact of the matter is that people in America and Canada are not buying them. When you think of Chrysler products there is nothing that really stands out like some of the other more popular companies. And things like the Challenger that do stand out to some people are not going to sell in high enough volume to make a difference. As far as Im concerned they were doomed as soon as they replaced the Neon with the Caliber.

04/25, 1:42 PM

posted by:

hangonbig3

New Dodge Ram..argualbly the best all around truck on the market..New Dodge Journey..selling them as fast as they can get them..Jeep wrangler 2 and 4 dr…iconic, well built, selling at a very fast pace..Chrysler and Dodge minivans..still the most versitle vehicle on the planet. Chrysler 300/Dodge Charger still as great as they were when they arrived 5 years ago. Small cars are marginal I will agree with that. On the horizon…Chrysler 200C, looks like a winner. “Lackluster and repetitive” ? Have you driven thru a GM lot lately…C’mon!

04/25, 1:48 PM

posted by:

BuyUSA

CanGo87: “I wonder how many of the people here defending Chryslers lackluster and repetitive line up actually have one sitting in their driveway right now?”

I do. an ‘09 Ram 1500 and I’m also taking delivery of an ‘09 Challenger R/T this week (had to convince the wife because we originally planned on a 2010 Lacrosse.) I have owned a half dozen or so Chrysler products over the years and I can tell you they have been mostly problem free – a couple minor issues here and there (taillight assembly, warped rotors at 30k which the dealer took care of) but I have never had a “lemon” or anything close to being one. This is my second Ram and they are the most comfortable trucks I have ever sat in.

CanGo87: “The fact of the matter is that people in America and Canada are not buying them.”

Fact: Chrysler outsold Honda in the U.S. during the last reported sales month of March, 2009.

Fact: Chrysler is the #2 most popular carmaker in Canada, right behind GM in sales.

I don’t know where you are getting your “facts” from, but you are clearly delusional and you have no idea what the hell you are talking about.

04/25, 2:19 PM

posted by:

johnnycanuck

Are we forgetting that this is good news? And what you’re forgetting CanGo87 is that people aren’t buying much of anything these days. By the way, I do have a 2 Chryslers sitting in my driveway including a 2006 Sebring (remember, before they turned it into a rolling eyesore) and my only complaint is symptomatic of the entire industry in that it’s worth f*ck all. Chrysler products sell very well up here and was in fact the number one line in the country February. I said from the start of this proposed alliance that the unions were going to be the major stumbling block, but with the CAW on board I imagine the UAW won’t be far behind. They’ve made huge strides the last 3 weeks and while the outcome is not yet certain you have to feel that a new chapter is about to be written in Chrysler’s history. They have some good people working under the MOPAR banner and more importantly some good car people. Let’s get this done and watch them move forward.

04/25, 7:46 PM

posted by:

Jon Luc

On a side note, I’m wondering how much money Fiat paid the government to make Chrysler merge with Fiat.

04/25, 9:37 PM

posted by:

carstuff

As I have said, lots of opinions here but little in facts. When facts are listed (like Chrysler outsells Honda) gets awful quiet or some idiot response on how stupid those buyers are.

Honda. American Honda Motor Co., Inc., posted March 2009 vehicle sales of 88,379, a decline of 36.3% by volume compared to March 2008. Car sales were down 33.6% to 52,294 units; truck sales were down 40.4% to 33,085 units.

Honda Motor Co. said it will cut North American production further, reduce the pay of its salaried employees in North America, and for the first time, force its hourly workers to take unpaid leave, as vehicle sales continue to plunge.

Chrysler. Chrysler LLC reported March US total sales of 101,001 units—the first time since Sept. 2008 that the Company has surpassed 100,000 units—representing a 39% decrease year-on-year. Chrysler retail market share increased to an estimated 10.0 percent versus 9.9 percent in March 2008.

Chrysler’s top-seller, the Ram pickup, posted 19,328 units, down 27% year-on-year. The Caravan posted sales of 11,358, down 19%. Sales of the Jeep Wrangler climbed 16% to 10,000 units, while sales of the Dodge Journey increased 127% to 5,987 units.

04/25, 11:30 PM

posted by:

sprockkets

The Journey is you example of Dodge? Great, it has the same grille style from the past 15 years + poor build quality + cheap plastic. They still haven’t figured it out.

I guess they didn’t learn people don’t like Pacifica’s, the “next big hit”. Why not call it what it really is, a stupid “SUV” that really is a minivan? Oh wait, that’s the Durango. How well is that doing? It’s worth 25% of its original value after 3 years.

But hey, at least you get a lifetime power train warranty, which at the very least means you’ll be getting your warranty from Fiat/or the US Gov soon lol.

Doomed the day they replaced the Neon? They buried that nameplate for one reason: Neon = POS. All the ones I see on the road are accompanined by blue smoke, along with every 2 generation old Caravan as well, due to crappy head gaskets.

The majority of the Neons still running on the road are the SRT versions, and they will die too, along with the driver, when the high schoolers that buy them run them into 50+ year old oak trees.

And if Chrysler outsold Honda, is this Chrysler + Dodge + Jeep, or just Dodge? Does Honda include then Acura? What about Honda Bikes? Hell, why not include their lawn mowers?

Why not quote to me how well an Accord is doing vs. the Avenger? I think it is safe to say the Caravan beat the Odyssey.

S*** all you want on a Mini there BuyUSA; it keeps 68% of its value after 3 years, the best of any vehicle on the road, PERIOD. But I would never get one because they are overpriced to begin with and are kept that way due to low supply.

But hey, at least a Wrangler holds its value at 61%!

“I do. an ‘09 Ram 1500 and I’m also taking delivery of an ‘09 Challenger R/T this week (had to convince the wife because we originally planned on a 2010 Lacrosse.) I have owned a half dozen or so Chrysler products over the years and I can tell you they have been mostly problem free – a couple minor issues here and there (taillight assembly, warped rotors at 30k which the dealer took care of) but I have never had a “lemon” or anything close to being one. This is my second Ram and they are the most comfortable trucks I have ever sat in.”

Good for you. But Chrysler has a reputation for crap, Honda doesn’t. Civics last, Neon’s don’t. Intrepids never sold, the Accord always was around number 1 or 2 as the best selling vehicle in its class. Chrysler is set to die again, Honda will probably survive!

04/26, 4:23 AM

posted by:

wildgoose

I’m from Australia and I really can’t understand all the hate in comments about GM, Chrysler and Ford about what sh**ty products they make and how the U.S. gov should just just let these companies go bankrupt. I assume most of the comments are made by americans. Regardless of what cars these companies currently produce (which i think alot are very good) don’t you have any pride in your countires companies and the heritage of these companies.

Even if their products aren’t great right now it doesn’t mean they won’t turn the corner and create an awesome generation of new cars in years to come. All companies in the auto sector go through high periods and lows. If we can get these companies back on track they can continue to employee hundreds of thousand of people (millions when taking into account suppliers) for generations to come, it doesn’t seem like much of price we have to pay to achieve this.

04/26, 7:36 AM

posted by:

carstuff

wildgoose, we Americans are a different kind. I guess that is what made us what we are. Not sure why that is. No wonder other countries hate us since we seem to not even like ourselves, even though we are proud of what we are.

Even when the data does not agree with our opinion we continue on with our opinions against all odds. Probably why we win the wars and persevere.

04/26, 7:40 AM

posted by:

carstuff

Sprocketts, it said it right there in the quotes.

Honda Motor Co. includes Honda and Acura automobile Marques. Honda Motor Co. numbers quoted do not include motorcycles, nor lawn mowers.

Chrysler LLC includes Chrysler, Dodge and Jeep marques.

04/26, 4:33 PM

posted by:

Bosco

@wildgoose

It’s simple. As Americans, we don’t like things just because they’re American. We like quality, and we like capitalism That’s why so many of us are frustrated by “Made in China” toys that fall apart or poison our kids with lead paint. We buy an iPhone instead of a Nokia, not because it’s American, but because it has a superior design. On the contrary, Europeans love Nokia because of its origin. The Japanese are notorious for loving their own stuff.

But that’s what makes us different. We saw these companies produce **** for the past 15 years, and this is their reward. GM needs bankruptcy reorganization, and Chrysler needs liquidation. Ford at least had the foresight to stock up on cash years ago. In this business, you survive off of reputation. Any remaining U.S. manufacturers will need to rebuild their brand for the next decade.

We’re not living in ignorant, post-war times anymore. This is capitalism. You make a good product, or you go out of business. We don’t want an overgrown swine living off of our tax dollars.

04/26, 5:04 PM

posted by:

1c3d0g

About d@mn time, if you ask me! :evil:

04/27, 1:30 PM

posted by:

shaver

Tony Soprano would be proud. Now that your new master, Fiat has told you what you are worth go sit down and behave.

 
 
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