CAW Turns Its Guns on Struggling GM, Defenseless Chrysler

caw turns its guns on struggling gm defenseless chrysler
The Canadian Auto Workers (CAW) have ratified a generous deal with Ford– frozen wages, no two-tier tears at bedtime– by a reported 67 percent margin. (I guess the other 33 percent thought they could get blood out of a stone). Even more flabbergasting: the contracts aren't even up until September. CAW boss Buzz Hargrove says [via The Detroit News] that GM and Chrysler will go down just as fast, just as hard. "They will accept the same economic terms. It's only a question of when. I'm hoping it will be in the next week or so." Not so fast, Mr. Bond. Chrysler's teetering on the brink of bankruptcy. They got no game. And GM, well, GM's got 32 U.S. plants off-line (including all the key ones), the prospect of more union action to come, sweet F.A. going on in its high profit margin SUV and truck biz, and a cash conflagration that could heat Hoboken for a week. Buzz? Buzz wants GM to commit more product to the Ontario factory. Never mind that the Peso is worth less than a Canadian Loonie. Or the fact that GM builds trucks in five other factories, including two in Silao and Toluca, Mexico). Still, look for GM to roll over and play dead (it's who they are and what they do), while Chrysler delays the inevitable (selling everything to Magna) for as long as possible.
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  • Lichtronamo Lichtronamo on May 06, 2008

    Does anyone else think Ford may have done their agreement with the CAW so early and with such favorable terms so as to push either GM or Chrysler into the abyss of C11? Ford is the one company of the Big 3 that can't really go C11 because the Ford family's wealth and control of the company would be wiped out. As such, with their renewal program taking hold and looking to pick up steam in 2009/2010 with new product, why not see if they can add the dead-cat bounce too? Crazy?

  • Robert Farago Robert Farago on May 06, 2008
    Lichtronamo: Ford is the one company of the Big 3 that can’t really go C11 because the Ford family’s wealth and control of the company would be wiped out. As such, with their renewal program taking hold and looking to pick up steam in 2009/2010 with new product, why not see if they can add the dead-man bounce too? Not crazy at all. This is a game of Last Man Standing. If Chrysler and then GM go belly-up, the dead cat bounce will be HUGE. Only one problem: a resurgent, post-C11 Chrysler or GM. Hmmm. Nah.

  • Lichtronamo Lichtronamo on May 06, 2008

    Chrysler is never coming back fro C11. Carlos Ghosn will make off with Dodge trucks and Jeep leaving Chrysler cars to the Chinese or Indians. If GM is to survive C11, the courts will have to install a CEO with Ghosn or Mulally's capabilities to walk into the big office and ask "WTF is going on here?!" Kill products, brands, dealers and please, oh, please Bob Lutz (or at least demote him to PR chief).

  • Jthorner Jthorner on May 06, 2008

    " Does anyone else think Ford may have done their agreement with the CAW so early and with such favorable terms so as to push either GM or Chrysler into the abyss of C11?" I've certainly been wondering if caving early is part of Mulally's master plan somehow. He doesn't seem like the kind of guy who does things for no good reason.

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