Skip to: Content
Skip to: Site Navigation
Skip to: Search
MONDAY, NOVEMBER 23, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


3

UAW to Own 55% of Chrysler

Share

(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)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.23.09
Books Are Bad for You
11.20.09
The Health-Care Wars Have Just Begun
3 comments
VIEWING:
 
SPH
Apr 28, 09 5:42 PM CDT
An employee owned auto company...This ought to be interesting..... Reply
Vote up! Vote down!
0
justme
Apr 28, 09 6:29 PM CDT
Employee owned companies have a good track record. Wish them well. Better than going out of business. Taxpayers might actually get paid back. Reply
Vote up! Vote down!
0
ChristopherU
May 6, 09 10:30 AM CDT
Finally, this is why Europe has destroyed us economically. One step towards a high-road economy. Reply
Vote up! Vote down!
0
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

200 Stories

 Chrysler Adds Fiats, Dumps Dodge, Jeep Models

Revamped automaker will reintroduce Alfa Romeo to US

Oct 27, 09 6:54 AM CDT
(Newser) - Now four months out of bankruptcy, Chrysler is set to unveil a new business plan that relies heavily on models from Fiat, its Italian partner, and abandons many American cars. The company will reintroduce the luxury Alfa Romeo to the US and also bring in a Mexican-built Fiat 500, the... More »

MORE ABOUT:
Chrysler • Dodge • auto industry • Fiat • Alfa Romeo • Jeep • Sergio Marchionne

Recession Crushes
White-Collar Michigan

Layoffs, property price plunge leaves middle-aged workers in limbo

Sep 17, 09 1:26 AM CDT
(Newser) - Tens of thousands of middle-aged white-collar workers have been left jobless and stranded in Michigan by the recession, the Wall Street Journal reports. Auto industry veterans laid off by the Big Three are finding themselves competing against against younger people for a smattering of job openings. With property prices down... More »

MORE ABOUT:
Chrysler • General Motors • Detroit • Michigan • recession • Ford • unemployment • auto industry • Big Three • white collar

Clunkers Drives Ford's August Sales Up 17%

Hyundai surges 47%; GM drops 20% and Chrysler 17%

Sep 1, 09 1:56 PM CDT
(Newser) - Cash for Clunkers reverberated through August auto sales reports released today, with Ford and Hyundai scoring big jumps, the Wall Street Journal reports. The winners and losers:
  • Ford's light vehicle sales rose 17% year-over-year, with the Focus and Escape both in the top eight most popular vehicles purchased through
... More »

MORE ABOUT:
Chrysler • Ford • auto industry • auto sales • Cash for Clunkers

200 Stories


Daimler gives up Chrysler stake
Detroit Free Press

New GM plan would cede control to government
Detroit News


Business 
TwitterFollow @NewserBusiness on Twitter

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

from our news partners