UAW to Own 55% of Chrysler

By Kevin Spak,  Newser Staff
Posted Apr 28, 2009 8:07 AM CDT
From left, UAW family members Mike Green, Rollin Green, and Richard Green pose at the UAW Local 652 in Lansing, Mich., Tuesday, Dec. 2, 2008.   (AP Photo/Carlos Osorio)
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(Newser) – The United Auto Workers are about to own Chrysler. In exchange for a variety of concessions, the union will eventually get a 55% majority share in the automaker, according to a summary of the restructuring deal, which was sent to union leaders late last night and reviewed by the Wall Street Journal. Fiat will eventually own 35% of the stock, with taxpayers and creditors divvying up the remaining 10%.

Chrysler will also issue a $4.59 billion note to the union’s health-care trust for retired workers, to be paid off between now and 2023. The fund will own enough Chrysler stock to appoint a representative to the automaker’s board. In a separate deal, Daimler will give up the 19.9% of Chrysler it still owns, ending its relationship with the company.