Chrysler Reaches Some Sort of Tentative Agreement With UAW

Robert Farago
by Robert Farago
chrysler reaches some sort of tentative agreement with uaw

“The UAW said it reached a deal with Fiat and the U.S. government.” Oops! I forgot the word “also”. I wonder how that happened. Because everyone knows Chrysler’s management is large and in charge, despite the fact that its existence depends entirely on the largesse of the American taxpayer and the success of a cockamamie scheme hatched by a struggling Italian automaker and an unelected quango known as The Presidential Task Force on Automobiles. The Detroit News provides the details of the agreement, which show that the UAW—wait . . . No they don’t. Motown’s hometown paper doesn’t provide any details of the union – Chrysler – Fiat – PTFOA agreement. All we get is this: “The settlement agreement, subject to ratification by UAW members at Chrysler, includes a revision of the 2007 health care deal, and members must approve the deal by Wednesday.” At best, we can assume some sort of health care obligation for equity swap involved. At worst, Uncle Sam will guarantee the union’s health care provisions, regardless of Chrysler’s ultimate fate (i.e., liquidation.) As the DetN recognizes, whatever the fine print, the union deal paves the way for American Leyland.

One big issue for Chrysler is that it won’t produce any vehicles with Fiat technology until 2011. With the automaker burning through as much as $1billion a month after losing $8 billion in 2008, it’s unclear how it can survive on just $6 billion more in taxpayer loans . . .

Chrysler would need debtor in possession financing—funds to operate while it’s in bankruptcy—from the government or get government backing for such financing. It has pegged the figure at $24 billion over two years.

And the rest.

Join the conversation
2 of 5 comments
  • on Apr 27, 2009

    And so the UAW achieves their payoff. I am sure several million will be flowing back to Obama.

  • Rod Panhard Rod Panhard on Apr 27, 2009

    And the Game of Chicken continues. This time, the UAW makes a "deal" and Fiat says, "Yes, it looks good to us because we don't pay any money." So the UAW fakes a flinch, and they end up looking like "The Good Guys." Yet, we don't know what they did. Brilliant play. If it goes to UAW vote, then the secret will get out and we'll know what the "concessions" are. I seriously doubt they're much, but I'm certain that Fiat's pockets aren't any emptier, either now or in the future. Same with Cerberus. I hate to say this, but this is way more entertaining than anything on TV, pay-per-view, etc.

  • Azfelix From certain angles the bonnet appears oversized with respect to the rest of the car - like a skinny teenager wearing a bulky sweater nicked from her older sister's wardrobe.
  • Tassos This is way too god damned OLD, 21 years old to have all the necessary options you need TODAY. You need a 10 year old or less car. AND if you give us THIS POS, a 21 year old model, that is not even a LUXURY car, whoever pays $10k for a Golf, And I Do NOT care what anniversary it is (they are all UTTERLY INSIGNIFICANT) deserves to get this MOST UNRELIABLE AND COSTLY TO REPAIR OF ALL LOUSY ECONOBOXES< EVEN THE DOMESTICS AND THE KOREANS.
  • Tassos As you say, Toyota confirmed this on TUESDAY. Today is WEDNESDAY. Why is everything on TTAC held back one or more days before you tell us the NEWS when it is NO MORE THE NEWS?
  • MRF 95 T-Bird You can find a decent and far more stylish Audi TT or an S4 of a similar vintage for under $10k.
  • RHD "In all situations, the grip of the tires (225/40R18 front, 225/35R18 rear) brings with it road noise."Are the rear tires actually smaller than the fronts??!! Adding just a bit of sidewall would take care of the bumps and rough ride. I'm not a fan of BMWs, personally, but this is a very enjoyable car. There are times when driving a convertible is pure bliss, and with a bit of power it's fun as well. (And certainly a better drive than a gussied-up, overpriced German taxicab!)