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UAW to Own 55% of Chrysler

By Kevin Spak,  Newser Staff

Posted Apr 28, 2009 8:07 AM CDT
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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.

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.
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)
UAW President Ron Gettelfinger testifies on Capitol Hill in Washington, Friday, Dec. 5, 2008, before the House Financial Services hearing on the auto industry bailout.
UAW President Ron Gettelfinger testifies on Capitol Hill in Washington, Friday, Dec. 5, 2008, before the House Financial Services hearing on the auto industry bailout.   (AP Photo/Gerald Herbert)
Chrysler headquarters are shown in Auburn Hills, Mich., Monday, April 27, 2009.
Chrysler headquarters are shown in Auburn Hills, Mich., Monday, April 27, 2009.   (AP Photo/Paul Sancya)
In this photo taken May 25, 2006, workers perform their tasks in Italy's giant automaker Fiat's Mirafiori assembly plant, in Turin, northern Italy.
In this photo taken May 25, 2006, workers perform their tasks in Italy's giant automaker Fiat's Mirafiori assembly plant, in Turin, northern Italy.   (AP Photo/Massimo Pinca)
In this photo taken May 25, 2006, workers perform their tasks in Italy's giant automaker Fiat's Mirafiori assembly plant, in Turin, northern Italy.
In this photo taken May 25, 2006, workers perform their tasks in Italy's giant automaker Fiat's Mirafiori assembly plant, in Turin, northern Italy.   (AP Photo/Massimo Pinca)
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COMMENTS
Showing 1 of 1 comment
justme
Apr 28, 2009 11:29 AM CDT
Employee owned companies have a good track record. Wish them well. Better than going out of business. Taxpayers might actually get paid back.

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Chrysler • United Auto Workers • Cerberus Capital Management • Daimler • auto industry • Fiat

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