Chrysler and the United Auto Workers union struck a deal on Sunday that satisfies the U.S. government’s April 30th deadline for labor cost reductions. Details of the agreement have not been disclosed, and it still must be ratified by workers. Meanwhile, Canadian Auto Workers union on Sunday ratified the agreement negotiators struck on Friday, which promises to save the automaker $240 million per year. Chrysler says the two developments will enable it to continue pursuing a partnership with Fiat. As such, it appears getting debtholders to agree to concessions is the final hurdle to avoid bankruptcy.
“We are pleased that the men and women of the CAW have voted to ratify this contract,” said chief bargainer Al Iacobelli in regard to the Canadian deal. “We know that these are unprecedented times within the automotive industry and we have the utmost respect for the Canadian represented employees. We appreciate the hard work and dedication that they bring to the job each day.”
Although details of the UAW deal have not yet been disclosed, Iacobelli expressed his satisfaction with terms. “We commend the UAW’s leadership for their endless determination and perseverance in reaching this tentative agreement especially during these unprecedented economic circumstances that plague the automotive industry,” he said. “The provisional agreement provides the framework needed to ensure manufacturing competitiveness and helps to meet the guidelines set forth by the U. S. Treasury Department.”
Assuming the UAW approves the contract modification with Chrysler, the automaker will be able to turn its attention to stamping out debt reduction deals with bondholders. Chrysler is said to be attempting to slash its debt from $6.9 billion to just $1 billion.
04/26, 9:44 PM
posted by:
johnnycanuck
It’s a beauty day, eh?
04/26, 10:09 PM
posted by:
BuyUSA
Great. Now if the greedy crooks on Wall Street would stop being a bunch of tight-@sses and use some of the billions of taxpayer money we gave them to help Chrysler out…..
04/26, 11:35 PM
posted by:
CiNO
johnnycanuck
“It’s a beauty day, eh?”
yeah It’s the most beautiful day. I can be able to see Chrysler. and their SRT .
04/26, 11:51 PM
posted by:
Ed103
I’m amazed that the unions got their heads out of their asses and did the logical thing. Well done! Perhaps society isn’t as dumb as I thought.
04/26, 11:55 PM
posted by:
johnnycanuck
CiNO, I’m actually just as excited about what Fiat can bring to the table. We all know the Italians can cook up something exotic but let’s see what they can do when it comes to the value menu.
04/27, 12:48 AM
posted by:
JakeK66
Mmmmhmmm JohnnyC -
I can’t wait for the Chrysler TC to make a comback!!!! They can use the Sebring Convertable this time!!!!
In all honestly, if they are able to avoid bankruptcy it’s good for everyone. They are pretty much doing a non-bankruptcy bankruptcy (if that makes since) as it is it sounds like to me, which I would do if I was in charge there. Good for them, if successful I see Chrysler/Fiat having real success in the NA market.
04/27, 2:12 AM
posted by:
Veda
Alfa Romeo based Chrysler might just be worth buying…
04/27, 4:39 AM
posted by:
CanadaCraig
This is going to be a VERY interesting week. Now that the CAW union negotiations is a done deal – and those with the UAW will most likely become one by Wednesday – the pressure on Chrysler’s ‘debtholders’ is going to be fierce. And if Chrysler DOES end up going bankrupt – the ONLY ‘players’ left to blame will be the BANKS!!
04/27, 8:19 AM
posted by:
F50
I wonder if Chrysler and Maserati will bring back the TC, maybe replace the Sebring Convertible?
04/27, 9:32 AM
posted by:
parts guy
Fantastic that the unions were able to come up with an agreement with Chrysler. I’m also impressed that the agreement left pensions intact – good for those on a fixed income.
Hopefully the wall street hogs that have been coming to the trough will kick in their share to allow the Chrysler-Fiat deal to move forward.
Like Johnny, I am also interested to see what the arrangement can cook up – especially if there ends up being a tie to the Opel midsized platforms as was rumored Friday.
04/27, 10:06 AM
posted by:
moparsalesman1
Thank god
04/27, 10:31 AM
posted by:
hangonbig3
Man I love the smell of positivity in the morning!!!
04/27, 10:34 AM
posted by:
fan
Somehow, eventhough situation seems at times way worse for Chrylser, i feel like out of GM and Chrysler, it will be Chrysler to still be around in, say, 3-4 years
04/27, 12:10 PM
posted by:
moparsalesman1
@ fan
- keep your eye on chrysler, they have a lot of good things coming in the near future.
04/27, 1:56 PM
posted by:
mhightower91
hell yeah…….chrysler will be on top……8 new models r on the way……and lets hope to see a 700hp viper to celebrate the news
p.s.
f*** benz and their “i wanna kill chrysler” plan lol
04/27, 6:22 PM
posted by:
BuyUSA
Moparsalesman1, I can’t wait for the EV lineup to start hitting the showrooms i think starting next year? Any word on which will be the first one? 200C? I should be picking up my Challenger R/T this week. I hope Fiat doesn’t kill the Challenger anytime soon.