Dreamcast18
09-07-2007, 01:24 PM
Very interesting progress...they're paying top dollar for the new guys.
DETROIT, Sept 7 (Reuters) - Chrysler LLC Chief Executive Bob Nardelli said on Friday he was "optimistic" about reaching a "viable solution" in contract talks with the United Auto Workers union.
Nardelli, speaking to reporters in Detroit, also said executives from Chrysler's new owner, private equity firm Cerberus Capital Management, will not be directly involved in the negotiations aimed at securing a deal on wages and benefits to replace the current contract expiring Sept. 14.
"I'm optimistic they'll come to a very viable solution," Nardelli said.
The outlook on the closely watched talks came a day after UAW President Ron
Gettelfinger declined comment on progress in the negotiations.
Chrysler and its larger competitors -- Ford Motor Co <F.N> and General Motors Corp <GM.N> -- are seeking concessions on labor costs, including health care, to bring their expenses in line with Japanese competitors that operate production facilities in the United States.
Chrysler's talks with the union are being led by the vice chairman and president, Tom LaSorda, who stepped down last month as CEO to make room for Nardelli.
Nardelli, speaking to reporters at a lunch sponsored by the Automotive Press Association, said Cerberus founder Stephen Feinberg had given a clear commitment to a longer-term turnaround strategy for Chrysler and left the crucial labor talks to LaSorda.
"Feinberg has been very vocal that Cerberus will not get involved in union negotiations," he said. "We have the best guy in Tom LaSorda."
Nardelli was speaking a day after Chrysler stunned analysts by luring longtime Toyota Motor Corp <7203.T> <TM.N> executive Jim Press to split the vice-chairman and president role with LaSorda.
Press will be responsible for sales and dealer relations, while LaSorda heads up manufacturing and labor relations under the new structure.
"All three of us have decided to check our egos at the door," said Nardelli.
Nardelli's appointment to the top job at Chrysler in early August also surprised analysts as Cerberus reached out beyond the auto industry to hire the former Home Depot Inc <HD.N> CEO.
Nardelli said his priority at Chrysler was to speed up the automaker's existing turnaround plan, with an eye to selling assets to boost cash flow.
"We are looking at assets," Nardelli said in response to a question. "We have some nonearning assets. One of the benefits of private equity is the ability to monetize those assets."
Nardelli said Chrysler had no intention of disposing of any of its three brands -- Chrysler, Jeep and Dodge.
Cerberus acquired a controlling 80 percent stake in Chrysler in a deal that closed last month. The automaker's former owner, Daimler <DAIGn.DE>, retains a nearly 20 percent stake.
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-09-07T183604Z_01_N07237685_RTRIDST_0_CHRYSLER-UAW-UPDATE-1-PICTURE.XML&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage1
DETROIT, Sept 7 (Reuters) - Chrysler LLC Chief Executive Bob Nardelli said on Friday he was "optimistic" about reaching a "viable solution" in contract talks with the United Auto Workers union.
Nardelli, speaking to reporters in Detroit, also said executives from Chrysler's new owner, private equity firm Cerberus Capital Management, will not be directly involved in the negotiations aimed at securing a deal on wages and benefits to replace the current contract expiring Sept. 14.
"I'm optimistic they'll come to a very viable solution," Nardelli said.
The outlook on the closely watched talks came a day after UAW President Ron
Gettelfinger declined comment on progress in the negotiations.
Chrysler and its larger competitors -- Ford Motor Co <F.N> and General Motors Corp <GM.N> -- are seeking concessions on labor costs, including health care, to bring their expenses in line with Japanese competitors that operate production facilities in the United States.
Chrysler's talks with the union are being led by the vice chairman and president, Tom LaSorda, who stepped down last month as CEO to make room for Nardelli.
Nardelli, speaking to reporters at a lunch sponsored by the Automotive Press Association, said Cerberus founder Stephen Feinberg had given a clear commitment to a longer-term turnaround strategy for Chrysler and left the crucial labor talks to LaSorda.
"Feinberg has been very vocal that Cerberus will not get involved in union negotiations," he said. "We have the best guy in Tom LaSorda."
Nardelli was speaking a day after Chrysler stunned analysts by luring longtime Toyota Motor Corp <7203.T> <TM.N> executive Jim Press to split the vice-chairman and president role with LaSorda.
Press will be responsible for sales and dealer relations, while LaSorda heads up manufacturing and labor relations under the new structure.
"All three of us have decided to check our egos at the door," said Nardelli.
Nardelli's appointment to the top job at Chrysler in early August also surprised analysts as Cerberus reached out beyond the auto industry to hire the former Home Depot Inc <HD.N> CEO.
Nardelli said his priority at Chrysler was to speed up the automaker's existing turnaround plan, with an eye to selling assets to boost cash flow.
"We are looking at assets," Nardelli said in response to a question. "We have some nonearning assets. One of the benefits of private equity is the ability to monetize those assets."
Nardelli said Chrysler had no intention of disposing of any of its three brands -- Chrysler, Jeep and Dodge.
Cerberus acquired a controlling 80 percent stake in Chrysler in a deal that closed last month. The automaker's former owner, Daimler <DAIGn.DE>, retains a nearly 20 percent stake.
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-09-07T183604Z_01_N07237685_RTRIDST_0_CHRYSLER-UAW-UPDATE-1-PICTURE.XML&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage1