Chrysler, UAW, CAW and Fiat reach 11th hour deal?

[Jacobfox]

From Yahoo News and the associated press:

Chrysler LLC cleared another major obstacle to its survival Sunday when it reached a tentative deal on concessions with the United Auto Workers union, helping it move closer to inking a vital alliance with Italy's Fiat Group SpA.

The troubled automaker is just days away from a Thursday U.S. government deadline to gain concessions from its unions and debtholders and link up with Fiat or face almost certain liquidation. White House economic adviser Larry Summers said Sunday the Obama administration is holding out hope that Chrysler can avoid bankruptcy court.

The UAW late Sunday called the concessions painful but said the deal takes advantage of the Obama administration giving Chrysler and its workers a second chance. The administration in February rejected Chrysler's restructuring plan and gave the Auburn Hills, Mich., automaker until April 30 to make further cuts and arrange to take on Fiat as a partner.

The UAW agreement is seen as a key piece of pulling Chrysler's plan together, and it's noteworthy that the UAW said Fiat was involved in the deal.

"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," Chrysler Vice President of Labor Relations Al Iacobelli said in a statement. "As a result, Chrysler LLC can continue to pursue a partnership with Fiat SpA."

Separately, Canadian Auto Workers members on Sunday ratified a concessionary deal which CAW President Ken Lewenza said makes labor costs competitive with non-unionized Toyota in Canada. The two labor agreements now leave concessions from the holders of $6.9 billion in Chrysler secured debt and the alliance with Fiat as the remaining hurdles to Chrysler qualifying for additional government aid.

But debtholders, the company and the Treasury Department remain far apart on terms to swap equity in the company for much of the debt. A counteroffer to the debtholders from the Treasury is expected as early as Monday.

UAW Vice President General Holliefield said in a statement that UAW members and retirees are being asked to make extraordinary sacrifices to help Chrysler become viable.

"In order for the company to have a sustainable future, all stakeholders will have to show the same willingness to contribute to the common good that has been demonstrated repeatedly by our membership," he said.

Chrysler has been living on $4 billion in U.S. government loans and is expected to get another $500 million. Without government help, it would have gone out of business around the first of the year. The government has said it would be willing to loan Chrysler up to another $6 billion if it is able to complete its restructuring and ink the deal with Fiat.

I hope this is true, if only because I really, really want to get a MiTo. Chrysler's current product line sucks for the most part and unless Fiat can fix it, they might be best served by gutting all of the useless crap models (avenger, sebring, aspen and caliber anyone?) and consolidating into one brand.

Full story here: http://news.yahoo.com/s/ap/20090427/...djaHJ5c2xlcmE-

[nouseferaname90]

I want the 156 replacement for when I graduate college. lookin forward to the onslaught of Alfas in America.

[Dogbert]

UAW Vice President General Holliefield said in a statement that UAW members and retirees are being asked to make extraordinary sacrifices to help Chrysler become viable.

"In order for the company to have a sustainable future, all stakeholders will have to show the same willingness to contribute to the common good that has been demonstrated repeatedly by our membership," he said.

Sigh. Get the fuck over yourselves. It's like everyone else has to make cuts before the UAW does, and then when they finally do make some cuts, they make it out like they're shouldering the whole burden... and then the cycle repeats ad nauseam.

I'm also a huge fan of how they're trying to get sympathy on their side by saying they're making "extraordinary sacrifices"... when the alternative is that they all lose their jobs.

[p0w3r]

Originally Posted by nouseferaname90

I want the 156 replacement for when I graduate college. lookin forward to the onslaught of Alfas in America.

I hope they are gonna have autodelta here too.

mmm 159 autodelta gta...who cares if im gonna torque steer into a tree? i will look cool and stylish while doing it

[MadCat360]

All I want is a MiTo.

[E34lover]

Alfa Spider, Alfa Brera, or 159 sport wagon for me PLZ!

[Redliner]

A 500 would make me 100% satisfied.
(Yes, yes, FIAT is already in Brazil but the 500 still isn´t!)

[tone76]

The horse's heads in the beds of various UAW officials must have worked, then.

[Jacobfox]

Yeah, in the end it looks like it has worked and the Government isn't gonna liquidate.

[edkwon]

I was really hoping this wouldn't extend the union's lifelines any longer, why not dissassemble and then rehire former union workers as full time non union employees?

[Dogbert]

Originally Posted by edkwon

I was really hoping this wouldn't extend the union's lifelines any longer, why not dissassemble and then rehire former union workers as full time non union employees?

Because then they wouldn't get all those sweet union perks that have been bankrupting these companies and creating a divide in the automotive industry workforce.