I’m not a big fan of Labor Unions. They used to be a necessity but times have changed.
Daimler Chrysler (and the maker of my car; below) has just announced that Cerberus, a Private Equity Firm, will buy 80% of Chrysler for a small 7.4 Billion (pronounced Beeeell-yon) D’u’llers! I Guess the Germans couldn’t save Chrysler either.
(2007 Dodge Caliber R/T- I LOVE MY FREAKIN’ CAR)
Why has Chrysler become such a failure, the number one reason is High Labor Costs/Healthcare.
It’s a huge risk for Cerberus because it has agreed to take on Chrysler’s estimated $19 billion in retiree health care costs. Chrysler’s U.S. pension obligation is overfunded at present, the company has said.
I’m not a fan of Socialism but (the big but), it seems to me that the reason Chrysler is being sold off is because of the Labor Unions. Therefore, you would think they would want to…compromise a little more. Instead, they are watching them slide down the slippery slope…not even willing to throw a rope.
They were trying to stop the sale. They’d rather the company go down in flames then cut their pay. Not that I think they deserve less but something has to give.
Sales are down, the Japanese Automakers are kicking our collective American cars asssss….errr Bumpers.
Now I realize, the Unions aren’t the only ones to blame. Car design, innovation, hybrids, economy.. was lagging far behind the competitors. Nevertheless, Changes are being made in that direction, but obviously more needs to be done.
I guess time will tell.
For now, it’s sold and…pending Board approval, a new name: Daimler AG
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