Fiat: No Chrysler deal without major union concessions

[thewiseguy]

Chrysler has 15 more days to finalize a deal with Fiat or they will no longer be viable and eligible for federal aid.

Fiat's CEO says today that there is a 50% chance that there will be no deal because of very little progress in labor discussions.

http://news.yahoo.com/s/ap/20090415/ap_on_bi_ge/eu_italy_fiat_chrysler

This is going to come right down to the deadline.

[Oregone]

1. Will this be known as the Era of bail outs and cram downs?

As I look at this general movement unattached, it spells great trouble for unions and the citizens of the world.

[Romulox]

2. Time for the UAW to call the Obama Admin's bluff.

There's no point in further concessions. With new hires at $14/hour, there is not much more to lose.

The UAW should stand strong and force the Obama admin to carry out its threat to force Chrysler/GM into bankruptcy.

[thewiseguy]

3. Force them to bankruptcy?!?!

Neither GM or Chrysler would be viable now without the government aid.

[Romulox]

5. Yes, force them into bankruptcy. Haven't you been following the news?

"Neither GM or Chrysler would be viable now without the government aid."

Neither would AIG, Citi, et al. What's your point? :shrug:

[thewiseguy]

6. The point is that many people are going to be out of jobs

Without union concessions.

[Romulox]

9. Nonsense. The Obama admin does not have the political wherewithal to force GM/Chrysler into BK

that was my point. :hi:

[theboss]

11. I think they are going into Bankruptcy regardless of what Obama does

All he can do is slow the inevitable.

[Romulox]

13. Again, utter nonsense. We've given orders of magnitude more taxpayer $$$ to banks

and their foreign "counterparties".

Pleading poverty when the working man needs assistance is simply not credible.

[thewiseguy]

12. They are not forcing them. All they have to do is to stop the aid.

There is no obligation to help out GM or the privately owned Chrysler.

Enough aid has been handed out. It is time for some major restructuring of those companies.

[Romulox]

14. Same difference politically. Sorry, but your "free market" crap went out the window

When the US government began extending trillions of taxpayer dollars to the bankers.

[theboss]

15. Which I was not in favor of either

Though you could probably argue that the total collapse of the banking interesting could have impacted billions wordlwide while the collapse of one of the big three will be cataclysmic to Michiga and affect millions of people - but will still be smaller and an easier aftermath to manage.

[Romulox]

16. Right. But the genie is out of the bottle. It is not politically feasible to let GM/Chrysler die

based on "free market" principles to which the Obama admin does not adhere to in any other instance.

"collapse of one of the big three will be cataclysmic to Michiga and affect millions of people - but will still be smaller and an easier aftermath to manage.:

You are not thinking about this clearly. Politicians' main focus is re-election. Obama cannot force GM or Chrysler into bankruptcy and win Michigan in 2012. :think:

[blindpig]

4. swine

If they tried that shit in Italy the union would shut the place down. which is what we should be doing here, Where's the solidarity.

[Canuckistanian]

7. No more. The unions have to stand strong.

Fiat knows that they can demand concessions because American workers won't fight back.

Prove them WRONG.

[JHB]

8. Aren't Fiat factories in Europe unionized?

Contact them! Every Fiat factory worldwide should be shut down over comments like that.

[Romulox]

10. Remember when the Obama admin was going on about "the Sanctitity of Contract!"

to justify paying out the contracts of wealthy bankers at 100%?

Turns out some contracts are more sacred than others, I guess. :shrug:

[Cessna Invesco Palin]

17. New information...

ZURICH (MF-Dow Jones)--The chief executive of Fiat SpA (F.MI) said Wednesday he doesn't see obstacles to closing a deal with Chrysler LLC by an April 30 deadline, adding he would do what it takes to fix the ailing U.S. car maker.

"There is not a single reason why Fiat can't close (the deal by) April 30," Chief Executive Sergio Marchionne told reporters on the sidelines of a shareholders' meeting of UBS AG, of which he is board member.

U.S. President Barack Obama has given Chrysler until the end of the month to find a partner, or else face bankruptcy proceedings. If a final deal is reached, Marchionne is likely to seek broad authority over Chrysler's operations either as chief executive or in some other capacity, according to a person familiar with the matter.

"I'm ready to do whatever is necessary to turnaround the company," Marchionne said when asked if he would be ready to take the helm of Chrysler.

Marchionne had earlier warned that the Italian car maker could walk away from the alliance with Chrysler if American and Canadian unions don't agree to significant pay cuts at the ailing Detroit auto maker.

http://online.wsj.com/article/BT-CO-20090415-711438.html