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Chrysler sale wrapped up by May?

04/19/2007, 12:54 PM

By ndhapple

Sources close to DaimlerChrysler have told Reuters the sale of Chrysler could be completed by May of this year. DCX’s corporate strategy chief is in New York, talking with potential buyers of the troubled firm. The source warned the news agency that a deal wouldn’t be completed in time to present to the DaimlerChrysler supervisory board this month and that any such deal would take a while to complete saying “there are many aspects of this deal to take into account.”

This news follows a UAW statement yesterday indicating it would prefer Chrysler remain a part of DCX, fearing any deal would involve substantial layoffs. Gettelfinger condemned efforts by private investment firms to buy the company saying the union wouldn’t allow Chrysler to be sold to just be “stripped and flipped.”

The union which represents DCX’s German employees isn’t oppose to a deal as long as there are promises that jobs will be protected and preserved in the US.

Potential suitors of Chrysler include private-equity firms Cerberus Capital Management, Blackstone Group and Canadian auto parts maker Magna International Inc.

According to the report, GM’s bid was never seriously considered because of sure union rejection due to the massive layoffs it would have entailed.

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04/19, 2:47 PM

posted by:

bolex

you aint lyin’. it seems as though the union wouldnt mind seeing companies like GM and Chrysler go under. noting your comment on there inability to see long term is astounding like you say, if they drive these comapnies to the ground…no need to worry about layoffs, the companies wont exist anymore. dumb asses.

04/19, 2:49 PM

posted by:

anonymous 2

Union had no small part in ruining the American auto industry.

04/19, 2:56 PM

posted by:

renzogtr

however they can HELP SAVE……

04/19, 2:56 PM

posted by:

renzogtr

it

04/19, 3:07 PM

posted by:

Egbert Souse

I’m completely lost with American automakers and the UAW, can someone please explain everything to me

04/19, 3:58 PM

posted by:

Stuart

I hope daimler and chrysler both return to health sonner rather then later, but my instincts say that chrysler will take allot longer then daimler

04/19, 5:08 PM

posted by:

bolex

Egbert Souse, so am I but heres what i gathered this morning from my co-workers (and for those in the know – please feel free to correct me or elaborate).

Union is a middleman organization between employer and employee. they are there to protect the employee with salary, vacation..anything that has to do with employee rights. they(the union) almost acts as employee attorney.

Unionized employees are guarenteed raises (no ands, if or buts) its a guarentee and Unionized workers make more money compared to there non unionized counterparts.

Union workers are the ones that ‘Strike’. They gather up there men and demand a raise. (Unions belief is ’strength in numbers’)

Dont know if this helps, For me i cant seem to understand why the Union (American Workers) would jeapordize an American company that they work for?

04/19, 5:22 PM

posted by:

anonymous 2

Does Toyota or any foreign manufacturer for that matter have a union for its factories in the US?

I believe that the unions are hurting the bottom line by overpaying their workers not just in pay but also having to infuse lots of money into the retirement and benefit packages for the employees and retirees…but I could be way off.

04/19, 5:37 PM

posted by:

bolex

anonymous 2, i read an article a while ago that toyota does not want work with the UAW. I think they have there own form of a Union. Hopefully someone more educated can enlighten us.

As far as your comments on Unions being overpayed and hurting the bottomline i think your pretty much right. GM had a health insurance problem (or still does) dont if that was ever settled.

04/19, 7:31 PM

posted by:

Egbert Souse

Bolex, thanks for your explanation, thats the general idea I had of the union, but I dont think Toyota has a union, is there a way to get rid of this union??

04/19, 11:48 PM

posted by:

Zer0

As far as I know, Toyota does not have any unions.
From what I understand, they try to give their workers the pay and benefits they deserve and what is comparable for similar work in other types of manufacturing. All they have to do to stay ahead of the curve is actually pay a hair less than what union workers receive. If they do this right, the smart worker who looks at both wages will realize that after you take into account union dues, toyota actually comes out on top in terms of take-home pay. (in theory, don’t know if this is always the case in practice) The place where the big three really win out though, is benefits. But paying health care and pensions is also a big part of what is dragging them down.

It’s a great deal for the Union workers, don’t get me wrong. If I was one, I would be upset if they were even thinking about taking away the benefits. But if I had to choose between a few benefits or keeping a job i’ve had for 10,15, even 20 years….

Once the Union is in, it’s easier to start a new car company than it is to get rid of a union. but a lot of older American companies (and not just auto industry) brought the beast on themselves. In the early days, when workers were honestly not paid what they deserved, forming unions was the only way they could get the companies to change their policies.

04/20, 1:58 AM

posted by:

TOZO

I’ll buy Chrysler Group for $3000. My first order of business: fire all the union workers. Then: hire new workers. Then: sell Jeep for modest profit. Then: get rid of the ugly cars and close like 10 plants. Then: the money will roll in. Then: I’ll rub it in when I see Dr. Z.

04/20, 7:07 AM

posted by:

Get Real

Dead by June.

 
 
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