With just two weeks to go before the Fiat- Chrysler deal must be wrapped up, Fiat CEO Sergio Marchionne issued a strong ultimatum: “Absolutely we are prepared to walk” if Chrysler’s unions in Canada and the United States don’t agree to major concessions.
Fiat and Chrysler must reach an agreement by April 30 or else the U.S. Government will pull away its aid and let Chrysler be sold off in parts.
“There is no doubt in my mind,” Marchionne told the Globe and Mail. “We cannot commit to this organization unless we see light at the end of the tunnel.”
Marchionne gave the interview in Zurich at a UBS bank shareholders meeting. He was less than positive about the outcome of the proposed merger, saying that there is a 50 percent chance that the deal will fail.
“The dialogue is out of sync,” Marchionne said. “I think they need to see what state the industry is in. Canada and the U.S. are coming in as the lender of last resort. No one else would put a dollar in. This is the worst condemnation of the viability of this business.”
He urged the UAW and CAW to reach an agreement, stating that if they failed to do so, the ramifications would be far further reaching.
“But it will happen if a bankruptcy process drags on,” Marchionne said. “The UAW and the CAW have a unique opportunity here to change the framework of the discussion.”
