Chrysler Moves Forward (UPDATED)
They were against it:
On April 18, Ron Gettelfinger, president of the United Automobile Workers, vowed he would fight the sale, declaring a private investor would āstrip and flipā the company to earn a quick profit.
Until they were for it:
So many were as surprised as anyone today to learn that the sale of Chrysler to Cerberus Capital Management had their leadersā support.
No different than any politician.
This is knid of like the mess with the Union Pension Plans and Retiree Health Care Plans. Over the years, the Union Officials winked and nodded with the management when fat benefits were promised but never funded. Oh, just like Social Security, back to no different than any politician.
UPDATE: It looks like the way the deal was structured that Daimler “paid” to have Chrysler taken off its hands:
In a complex transaction, Daimler will actually receive 1 billion euros ($1.4 billion), but it will retain Chrysler’s debts, leading to a net cash outflow.
Chrysler Group will retain its obligations for pensions and healthcare costs and be renamed Chrysler Holding. The bulk of the money contributed by Cerberus will be splitbetween Chrysler Corporation, overseeing the production of Chrysler, Dodge and Jeep vehicles, will get $5 billion, and Chrysler Financial Services, which provides financial services for these vehicles in the NAFTA region, will get $1.1 billion.
— Oak Leaf