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UAW Says Chrysler Deal in Best Interest of Union Members
UAW President Ron Gettelfinger today said that after a thorough review, the announcement that DaimlerChrysler likely will sell Chrysler to the private equity firm Cerebrus Capital Management is in the best interest of the union’s membership, the Chrysler Group and Daimler.
We are satisfied now that the decision has been made so that our membership and management can focus on designing, engineering and manufacturing the finest quality products for the future success of the Chrysler Group.
Gettelfinger and other union leaders met with Dieter Zetsche, Chairman of the Board of Management DaimlerChrysler AG, and Tom LaSorda, President and CEO of the Chrysler Group and other company officials for additional clarification on issues impacting members.
Under preliminary terms, a new company will be set up that will be 80 percent owned by Cerberus, while Daimler will retain a 20 percent stake, according to The Washington Post, quoting sources familiar with the deal who spoke on the condition of anonymity . The new company would inherit Chrysler’s $18 billion in debt associated with health-care costs for retirees.
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2 Comments
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It’s not clear to me how being bought out by a private equity group could be in the best interest of Chrysler workers. If Cerberus has a serious plan for turning Chrysler around, lets hear it, but all we’re seeing out of this deal is tight lips.
It looks like this buy out is going to follow the trend of pay cuts, lay offs, and spin offs… I think UAW members deserve more clarification before Gettelfinger signs on the dotted line!
Beware of a mercenary finance co. They are in it for one thing. Make money! I see Jeep being sold within 3 to 5 yrs. Make sure there is a long range good business plan presented. Hopefully they are not the NOW generation. Doug