Originally Posted by ACX
I wish Magna would have won as well.
that being the case, I'm glad they are mostly done with daimler. Their egos never allowed for the synergies to be exploited.
My guess is the 20% they are hanging onto will in part involve the financial arm which they stripped away from chrysler (and is profitable).
The union appears to have given its blessing which tells me they are interested in building cars not selling them off. Looking at Chryslers increased sales abroad and in Canada, with some work they will get back to where they need to be.
Well it sounds like the UAW is happy but the CAW is Not happy:
Reacting to the news, Canadian Auto Workers union (CAW) President Buzz Hargrove said Monday that the deal was troubling.
"They own over 80 per cent, which means they own and control the company and they own and control the jobs of our members and that is very, very worrisome for our members, our families and the communities where our plants are at as well," Hargrove told CTV Newsnet.
"It is the first time the private equity groups, in a big way, have come into the manufacturing of vehicles in North America and no one knows what that all means."
Hargrove said the CAW would have preferred a company with a proven track record.
"We would've preferred someone who was in the industry that has a strong track record of job growth and growing the business," he said.
"Magna would have fitted that category but we weren't saying Magna only... we were saying anyone that shows that they're committed to strengthening the job security of members and their families."
He said Chrysler and Cerberus were going to brief CAW leadership on Tuesday.
The CAW represents about 10,000 Chrysler employees."
"In the U.S., United Auto Workers (UAW) president Ron Gettelfinger, who has publicly opposed the sale, said it was the best option under the circumstances.
"The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler," Gettelfinger said in a statement posted on the union's Web site.
The UAW represents about 50,000 Chrysler hourly workers."