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]

If you liked the article, share on:

Topics: fiat, uaw

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries