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Fiat Union Will Ask UAW to End Chrysler Merger Impasse
Leaders from Italy's Fim Cisi labor union say they will urge United Auto Workers President Bob King and other union officials to help end the deadlock that has blocked Fiat SpA from merging with Chrysler Group LLC.
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Leaders from Italy's Fim Cisi labor union say they will urge United Auto Workers President Bob King and other union officials to help end the deadlock that has blocked Fiat SpA from merging with Chrysler Group LLC.
The union, one of several that represent Fiat workers, will meet with the UAW officials in Detroit next week. Its national secretary tells Bloomberg News the delegation endorses the merger as the best long-term outcome for both companies.
Fiat, which owns 58.5% of Chrysler, has been battling for months over the fair value of the 41.5% balance held by a UAW-run retiree healthcare trust.
The trust has forced Chrysler to begin the process of launching an initial public offering to determine a share price. But Chrysler-Fiat CEO Sergio Marchionne says an IPO would prevent a full merger and could reduce the level of cooperation between the two companies.
Marchionne favors a direct buyout of the trust's equity. But he has offered far less than the €2.7 billion the trust believes its stake is worth.
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