UAW to get 55% ownership of Chrysler - This is not a joke.

[Soul Crusher]

UAW Leaders Recommend Approval of Chrysler Deal
Topics:Transportation | Automobile Industry
Sectors:Automobiles and Parts
Companies:FIAT S.p.A. | ChryslerBy: Associated Press | 27 Apr 2009 | 09:03 PM ET Text Size F


Factory-level leaders of the United Auto Workers union voted unanimously Monday night to recommend approval of concessions that could give a union-run trust 55 percent ownership of a restructured Chrysler.
 
CNBC.com
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Union President Ron Gettelfinger said the deal will help keep the automaker out of bankruptcy.

A summary of the revised Chrysler-UAW contract says that Italian automaker Fiat Group eventually will own 35 percent of a restructured Chrysler, with the remaining 10 percent stake divided between the U.S. government and secured lenders, mostly banks and hedge funds.

The Obama administration required that equity fund at least 50 percent of Chrysler's $10.6 billion obligation to a union-run trust that will take over retiree health care costs starting next year, according to the summary.

It also said that under the agreement, workers will no longer get most of their pay if they are laid off. Instead, they will get supplemental pay from the company equal to 50 percent of their gross base pay.

Union leaders say ratification votes across the nation should be finished by Wednesday. That's one day before Chrysler's government-imposed deadline to restructure or the government will end all aid to the struggling company.

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Chrysler is living on $4 billion in U.S. government loans and must win concessions from its unions, swap equity for debt and ink a partnership deal with Fiat.

Without the deals, Chrysler almost certainly will be auctioned off in pieces.

Fiat has been in discussions with Chrysler to take a 20 percent stake in the Michigan automaker in exchange for Fiat's small-car technology. Fiat could end up building cars in Chrysler's U.S. factories.

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Thank you Obama.  I now am a majortiy stakeholder in GM and Chrysler. 

[BM OUT]

Great,we get to pay for scum bag union idiots so they can recieve their assanine retirement packages.How in the hell is that even remotely fair to those of us who work and pay taxes.I dont give a flying fuck about those union jerkjoffs yet my money is funding them?

[Migs]

the not so slow death of of american companies. There is no reason that any uion should have a controlling state in a company.  Nothing good will come of this.

[Hereford]

So let me get this straight...

THe unions actually worked themselves into taking over Chrysler?

Does anybody think the American auto industry will ever be functional again? This will be a money put for the taxpayers for at least a generation.

[240 is Back]

this is the fox controlling the henhouse.

they're going to take govt funds, pay their own retirement packages and salaries off, then return and ask for more money.

[240 is Back]

Does anybody think the American auto industry will ever be functional again? This will be a money put for the taxpayers for at least a generation.

SHOULD they even be?

I come from a family that works with and loves their cars.  While USA cars are more lovable and manly (perhaps due to marketing), let's face it... foreign vehicles last longer.

Maybe the solution is to just walk away from the existing product lines and spend this bailout money on creating some cars that are as efficient as the japanese cars that run on something not called gasoline.

let's face it, in tough economic times, ppl want economic cars.  Lots of miles for minimal $.  I don't care what my car can do in a quarter-mile.  I care about how long until the tranny goes.

[Hereford]

Agreed. My family was all Ford and Chevy until about 2000. Now we buy Toyota and BMW. The cars just last a lot longer. No more hassel from buying door handles for the Chevy because they break off every few years, or Ford transmissions that all-but fall out and aren't warrantied due to some fine print.

I grew up thinking American cars were the shit... the whole "Only assholes buy foreign"... but at some point I realized that was just a union slogan...

[Soul Crusher]

The problem is that the car companies were used to producing too many vechicles based upon credit and home equity loans that were part of the RE bubble.

[240 is Back]

man, i got a used transmission for my GM vehicle last year.  $1400.  Sucked.  Truck was 6 years old and tranny goes.  Gimme a break.

[Soul Crusher]

man, i got a used transmission for my GM vehicle last year.  $1400.  Sucked.  Truck was 6 years old and tranny goes.  Gimme a break.

Mine in my Exploer went at 36000 miles. 

I bought a BMW right after that. 

Screw the UAW.

[240 is Back]

Mine in my Exploer went at 36000 miles. 

I bought a BMW right after that. 

Screw the UAW.

dude, it was like the transmission was just counting down til the warranty ended.

[Soul Crusher]

dude, it was like the transmission was just counting down til the warranty ended.

Actually mine went at 36,200 and they told me to GFM and I had to pay $$$$.  Thats it im done. 

I have a 2008 328i and 2002 Explorer.  As soon as the lease is up for the 328, I am going to sell the Explorer and get a Ridgeline. 

[240 is Back]

I have a 2008 328i and 2002 Explorer.  As soon as the lease is up for the 328, I am going to sell the Explorer and get a Ridgeline. 

Nice!

I'm looking at an SUV, something compact, probably foreign, sadly.  I don't know where to begin.

[Hereford]

On new Fords there is actually a deductible for warranty work. Unbelievable.

I went to look at new Rangers... Those things get 15 MPG and actually cost MORE than a Toyota Tacoma.

[Soul Crusher]

Nice!

I'm looking at an SUV, something compact, probably foreign, sadly.  I don't know where to begin.

I was very turned off by my experience with Ford.   

[MRDUMPLING]

Yep, my next truck will be a Nissan Frontier.  LIFETIME Powertrain warranty even on used vehicles!

That...and I have one that beats ALL of you out.

My '07 Pontiac G6's CATILLITIC(sp?) converter went out!  Granted, it was under warranty, but what kind of car has those go out in under two years?

Foreign all the way for the most part.

[BM OUT]

We are going to buy a new vehicle,we were thinking of a Ford because Im sure you could get a great deal,we would pay cash and have a trade in.After reading this,maybe I will stick with Japanese cars.

[Soul Crusher]

We are going to buy a new vehicle,we were thinking of a Ford because Im sure you could get a great deal,we would pay cash and have a trade in.After reading this,maybe I will stick with Japanese cars.

Im not joking, go on Edmunds and look at the forums before you buy anything. 

Ford knew about theproblems with the transmissions on the explorers and did nothing about it.  I wish I would have known.  Mine went at 36,200 miles and was not covered.

[Hereford]

You always get screwed when you take a trade in. You also have to have something pretty new for them to even consider it.

[shootfighter1]

I can't see how the UAW owning 55% of Chrysler is good....but I haven't heard the details.

Technically, many US cars rate right up there with their foreign competitors in recent years (if you read the auto mags) but I hear stories like you guys are telling quite often.

[Soul Crusher]

I can't see how the UAW owning 55% of Chrysler is good....but I haven't heard the details.

Technically, many US cars rate right up there with their foreign competitors in recent years (if you read the auto mags) but I hear stories like you guys are telling quite often.

Where have you been?

[shootfighter1]

Working bro.  I see the liberals have been dominating recent threads here...but as usual, your holding your own!

Oh, on a related note.  I just bought a 2007 Dodge Charger R/T.  The previous owner had some factory modifications to increase gas milage and increase horsepower a little (cold ram air and a mopar exhaust).  The owner said he regularly gets 26mpg on the highway driving it normally.  Thats pretty damn good for a higher performance car.  I looked at some used BMWs but they were more expensive, had more miles, and the gas milage wasn't much better.  I know they are good cars though.

[Soul Crusher]

Working bro.  I see the liberals have been dominating recent threads here...but as usual, your holding your own!

Oh, on a related note.  I just bought a 2007 Dodge Charger R/T.  The previous owner had some factory modifications to increase gas milage and increase horsepower a little (cold ram air and a mopar exhaust).  The owner said he regularly gets 26mpg on the highway driving it normally.  Thats pretty damn good for a higher performance car.  I looked at some used BMWs but they were more expensive, had more miles, and the gas milage wasn't much better.  I know they are good cars though.

I lease mine  and they cover the warranty for everything.  Otherwise, I would not own a BMW. 

[shootfighter1]

I hear its pretty expensive for repairs, no? 

[Soul Crusher]

I hear its pretty expensive for repairs, no? 

Thank God I dont know.