Fiat union leaders to meet with UAW union officials to bridge an impasse

Article by Anita Panait, on October 22, 2013

Fiat S.p.A.'s union leaders are meeting with top officials of the United Auto Workers union this week as they try to make it easier for the Italian carmaker to realize its plans to merge with Chrysler Group LLC. VEBA, a UAW retiree health-care trust, is forcing Fiat-Chrysler chief executive to prepare for the US carmaker’s initial public offering as both sides remained unsettled on the value of the shares owned by VEBA.

Fiat owns 58.5 percent in Chrysler while VEBA has the other 41.5 percent. Ferdinando Uliano, Fim Cisl national secretary in charge of Fiat relations for the Italian union, remarked that a Chrysler IPO may harm a combination of Fiat and Chrysler. Chrysler filed for an IPO on Sept. 23. A Fim Cisl delegation, which includes Uliano, plans to meet with UAW leaders, including President Bob King, as part of a scheduled trip to consult with their American counterparts.

Uliano remarked that they will tell UAW that only a merger of Fiat and Chrysler “would grant a positive future for both companies' workers." Marchionne has been trying hard to merge Fiat and Chrysler to form a global carmaker large enough to compete with Toyota, General Motors and Volkswagen. The Italian carmaker and the trust are currently at odds over the value of the stake, which VEBA says is valued at around EUR1 billion over what Fiat wants to pay.

The IPO may help resolve the price dispute but Fiat said the public offering may harm its relationship with Chrysler. Litigation is ongoing in a US court over the value of Chrysler shares. Delaware Chancery Court Judge Donald Parsons judge has set a September 2014 date to hear evidence. A five-day, non-jury trial will commence on Sept. 29, 2014. [source: automotive news - sub. required]

Topics: fiat, uaw

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016