April 30, 2009
WASHINGTON (CNN) — President Barack Obama confirmed Thursday that struggling automaker Chrysler will file for bankruptcy and merge with Fiat.
The president also blasted a group of investment funds and hedge funds for holding out for an "unjustified taxpayer bailout."
Several financial institutions, led by J.P. Morgan, agreed to reduce Chrysler's loan repayment obligations by as much as two-thirds, Obama said.
But "a group of investment firms and hedge funds decided to hold out for the prospect of an unjustified taxpayer-funded bailout" Obama said. "They were hoping that everybody else would make sacrifices and they would have to make none."
Some investors "demanded twice the return that other lenders were getting," Obama noted.
"I don't stand with them. I stand with Chrysler's employees and their families and communities. I stand with Chrysler's management, its dealers, and its suppliers. I stand with the millions of Americans who own and want to buy Chrysler cars. I don't stand with those who held out while everybody else made sacrifices."
Chrylser's bankruptcy won't affect consumers, Obama promised. Chrysler's warrantees have been guaranteed by the federal government.
"Every dime of taxpayer money will be repaid" before Fiat takes a majority stake in Chrysler, Obama added.
Tuesday, April 28, 2009
UAW President Ron Gettelfinger comments on the tentative settlement agreement with Chrysler, Fiat and the U.S. Government "It got unanimous support from the delegates. So, we’re really looking forward to getting out in the field and telling this story. Because this is about people. It’s about changes to their lifestyles, but in addition to that, people sit around the dinner table at night and are worried about tomorrow, about all this uncertainty and this big cloud hanging over their heads, not knowing if they’re going to have a future.
"And we stepped up to the plate and we’ve done our part. We would call on all the other stakeholders to do the same thing and hopefully we can get this thing concluded.
"We’ve been though negotiations here with Chrysler, with Cerberus with Fiat with Daimler, and indirectly with the banks. It’s the most difficult and challenging situation that we’ve found ourselves in, probably in the history of our union.
"We have confidence when our membership sits down and takes a look at this agreement – and we’ve held nothing back, we want to be very transparent, and make sure people know what’s in there -- we’re very confident that they will ratify the agreement, because the alternative is bankruptcy, which we certainly don’t want to be a part of."
For Release: Wednesday, April 29, 2009
DETROIT - UAW members at Chrysler have ratified a settlement agreement with Chrysler, Fiat and the U.S. Treasury.
Eighty-two percent of production workers and 80 percent of skilled-trades workers voted for the agreement in balloting that took place at UAW Chrysler locations throughout the United States. Ninety percent of office and clerical workers voted in favor of the agreement, and 94 percent of UAW-represented Chrysler engineering workers voted for approval.
“This has been a challenging time filled with anxiety and uncertainty for our membership,” said UAW President Ron Gettelfinger. “Our members have responded by accepting an agreement that is painful for our active and retired workers, but which helps preserve U.S. manufacturing jobs and gives Chrysler a chance to survive.”
UAW Vice President General Holiefield, who directs the union’s Chrysler Department, said: “Once again, UAW members have stepped up to the plate and acted responsibly. If other stakeholders will join us in making difficult sacrifices, Chrysler will have a chance to rebuild and participate in the eventual recovery of the U.S. vehicle market.”
The concessionary settlement agreement, which will take effect on Monday, May 4, meets U.S. Treasury requirements for continued loans to Chrysler Corporation. It includes modifications to the union’s 2007 collective bargaining agreement with Chrysler and modifications to the Voluntary Employee Beneficiary Association (VEBA) trust.
The settlement agreement includes commitments from Fiat to manufacture a new small car in one of Chrysler’s U.S. facilities, and to share key technology with Chrysler.
For Release: Thursday, April 30, 2009
DETROIT - The UAW will join with the U.S. government, Chrysler and Fiat in urging the U.S. Bankruptcy Court to give immediate approval to labor agreements ratified by UAW members, UAW President Ron Gettelfinger said today.
President Obama today announced continued government support for Chrysler as it continues its restructuring process.
“UAW Vice President General Holiefield and I spoke with President Obama this morning, and he asked us to let our active and retired members at Chrysler know how much he appreciates the substantial sacrifices they have made to help save this company,” said UAW President Ron Gettelfinger. “The president’s goal is clear: to assure the long term future of Chrysler.”
The next step in that process will be the filing of a petition for relief under Chapter 11 of the United States Bankruptcy Code.
The first order of business in the bankruptcy proceedings will be to seek court approval of the agreements recently reached between the UAW, the U.S. Treasury, Chrysler and Fiat. Motions seeking that approval will be filed immediately.
“We will urge the court to act swiftly,” said Gettelfinger. The agreements incorporate the modifications to the UAW collective bargaining agreement and retiree health agreement that were ratified by the UAW’s membership in voting that concluded yesterday.
Chrysler, the U.S. Treasury Department and Fiat all remain in full support of these UAW agreements and will join in urging the Bankruptcy Court to give them immediate approval. At the same time, the parties will be urging the Bankruptcy Court to give immediate approval to the terms of the Chrysler/Fiat alliance.
Under the UAW agreements, the pension plan covering UAW-represented employees and retirees will continue in effect without change. The agreements also include the previously announced changes to the retiree medical program, including 55 percent ownership of the restructured company by the retiree benefits trust fund.
“The UAW agreements have been ratified by our membership and approved by the United States Treasury, Chrysler and Fiat,” said Gettelfinger. “We believe it is in the best interests of all concerned for the Bankruptcy Court to give those agreements swift and complete approval. We look forward to presenting those agreements to the court.”
“The UAW membership at Chrysler, both active and retired, has once again demonstrated its strength and steadfastness in the face of great uncertainty,” said UAW Vice President General Holiefield, who directs the union’s Chrysler Department. “While we work to complete the process of court approval, the steps taken today are important milestones in restoring a great American car company to financial health, keeping manufacturing jobs here in the United States, and preserving a secure retirement for tens of thousands of American workers.”
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