Fiat-Chrysler deal in danger
By Andrew C., 27 Aug, 2010. 0 Comments
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The CEO of Fiat, Sergio Marchionne, has warned that Fiat will walk away from a deal with Chrysler if its unions refuse significant reductions in labor costs. Many see the arrangement with Fiat as the last resort for Chrysler's survival as a company. Fiat is pushing for the lowering of the cost of labor in Japanese and German-owned factories in both the US and Canada and declares that it is prepared to take the deal elsewhere if the US carmaker cannot come up with the same.
There is a 50 percent chance of the partnership with Chrysler pushing through because of the sluggish negotiations on labor costs particularly in the Canadian plant.
Another possibility is the Marchionne could become the CEO of Chrysler. Marchionne quickly points out that he is not simply interested in the title, only that Chrysler lend him their ears.
He is contemplating on the possibility of running two companies at the same time.
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