Thursday, January 2, 2014

Fiat Buys Chrysler From UAW Trust

FiatToday, Fiat announced that it was buying Chrysler.  Under the deal, which followed signficant negotiations, Fiat will pay $4.35 billion to the UAW retiree health care fund, which had owned part of Chrysler since it left bankruptcy under the bailout of the auto industry in 2009.  This amount is far less than Daimler-Benz spent in 1988 ($36 billion) and Cerberus in 2007 ($7.4 billion).  

No word on the extent, if any, that the new ownership will affect labor relations, so stay tuned.

-JH

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