Fiat To Chrysler: Cut Costs Or We Walk

[Purveyor]

Source: Globe and Mail

April 15, 2009 at 12:00 AM EDT

ROME and TORONTO — Fiat SpA will abandon Chrysler LLC, leaving it to fend for itself in bankruptcy court, unless Chrysler's Canadian and American unions agree to substantial labour-cost reductions by the end of the month, Fiat CEO Sergio Marchionne says.

For Chrysler, which is subsisting on cash borrowed from the U.S. and Canadian governments, the deal with Fiat is the last chance to avoid a bankruptcy filing and possible liquidation.

But Fiat is prepared to scrap the deal and look elsewhere for an international partner if the unions do not agree to match the lower labour costs of Japanese and German plants in the United States and Canada, Mr. Marchionne said in an exclusive interview with The Globe and Mail at the Italian auto maker's headquarters in Turin.

“Absolutely we are prepared to walk. There is no doubt in my mind,” he said. “We cannot commit to this organization unless we see light at the end of the tunnel.”
Fiat CEO Sergio Marchionne.

Mr. Marchionne, 56, said Chrysler workers on both sides of the border have to end their sense of entitlement if the wrecked auto maker is to have any chance of repairing itself.

Read more: http://www.theglobeandmail.com/servlet/story/RTGAM.20090414.wrfiat15/BNStory/Business/home

[Bolo Boffin]

1. Fiat: Fuck International Auto Tyrants

[Hugin]

2. Yup, it was union busting.

A show of hands... Who other than the perpetually 'surprised' Dem Leadership didn't see this coming?

:eyes:

[sharp_stick]

3. Would you prefer simple dissolution

of the entire Chrysler entity? It may be Union Busting but when they have all the cards, and they do, they get to call the game.

I'm afraid the US Auto Industry has been trumped and badly beaten by the imports for the last time, they simply can't compete anymore.

[Hugin]

4. Well, I would agree if it were building and selling autos which caused the crisis.

However, it wasn't... It was the fact most of the Auto Manufacturers opened up casinos.

But, that hasn't stopped them from using the opportunity to kill off the unions.

Oh, those foreign car makers... Those without unions? They did just stellar the other day. Didn't they? Largest losses in 72 years or something?

Yeah, it's all the UAW's 'entitlement' that's the problem. :eyes:

[EC]

10. The foreign auto companies have unions too,

but they are not paying for health benefits...that is already provided from the governments...

[AndyTiedye]

9. The UAW Should Buy Out GM and Chrysler

The only way those companies are going to continue to employ significant numbers of Americans is if the UAW owns them.

They could obtain control very inexpensively now, with everyone dumping their stock.

[shaniqua6392]

5. This article is a month old!!!!

It was written before the bankruptcy was filed. The auto unions gave them everything they wanted prior to filing in the courts.

[Old Coot]

7. Good eye! I didn't notice that. nt

[Purveyor]

8. Nor did I. I'll request that this article be moved into GD. Sorry all... eom

[CrispyQ]

6. Fucking assholes. They have no fucking shame.

Chrysler, Fiat planning to avoid cap on exec pay
May 12, 2009

http://www.freep.com/article/20090512/BUSINESS01/90512078/Chrysler++Fiat+planning+to+avoid+cap+on+exec+pay


The new Chrysler-Fiat partnership will get around U.S. restrictions on executive pay by having its top officers deemed Fiat employees. Meanwhile, Chrysler continues trying to reach its goal of reducing 3,500 U.S. hourly jobs through buyouts.

The details were disclosed in documents that Chrysler filed today as part of its bankruptcy case, outlining the $10.1 billion transaction among Fiat, the U.S. and Canadian governments and the UAW.

The new Chrysler is among the first company to fall under rules outlined in February by U.S. Treasury Secretary Tim Geithner for companies getting “extraordinary assistance” from the Treasury. Geithner had said such firms must cap the compensation of its top executive at $500,000 excluding restricted shares of stock, but the final rules putting the limits in place have not been released.

Treasury’s agreement with Chrysler for $4.1 billion in loans to survive bankruptcy specifies that the company’s top 25 senior executives will face pay limits, and the executives must agree to waive any claims against the government for changes in their compensation.

Fiat Chief Executive Sergio Marchionne has already indicated he will replace Chrysler Chief Executive Bob Nardelli. But under the deal, any of Chrysler’s top officers can be deemed a Fiat employee who’s “seconded” to Chrysler, and therefore take pay from Fiat beyond any Treasury cap.

Marchionne’s total compensation for fiscal 2008 was 3.05 million euros (about $4 million), according to a McGraw-Hill profile.

The push for 3,500 buyouts from Chrysler’s 26,000 UAW workers was apparently set by the Obama auto industry task force, according to documents detailing the changes in the UAW contract.

Chrysler, which has not publicly said how many workers it wants to buy out, extended the deadline for the deal last month to May 25, the third time it had been pushed back.

The buyout provides $75,000 and a $25,000 voucher for a new Chrysler vehicle for those under 55 with at least one year of seniority. Those between 55 and 62 with at least 10 years of service can retire with full pension benefits.

[cyclezealot]

11. As if Fiat will encourage US production

Come on now.. It's all about entering Fiat production into the US...

[Romulox]

12. Please remember that the same Obama admin that treated Wall St. with kid gloves is FORCING this

bankruptcy. :hi:

[Purveyor]

13. GM is next and will be even more devasting... eom