Chrysler – Fiat Deal in Trouble
In “Fiat CEO: Cut Wages or No Chrysler Deal,” I detail how the Obama administration’s attempt to shepherd a shotgun marriage between Chrysler and Fiat appears to be in serious trouble. Fiat CEO Sergio Marchionne is demanding major concessions from labor unions before agreeing to any deal — and is offering next to nothing in return.
It’s bizarre enough that the U.S. government is trying to force an American company to merge with an overseas firm as a condition of receiving another massive infusion of U.S. taxpayer money. But it gets better: Fiat is offering no cash infusion of its own while demanding huge pay cuts and promising to shut down multiple plants.
If the point of the bailout is either to 1) save an important American company or 2) prop up one of the last remaining vestiges of highly paid, union manufacturing jobs, it’s not looking so good.