UAW accord frees up Chrysler; After labor concessions, automaker can seek deep-pocket partner.(Chrysler Corp.)(United Automobile Workers)

Automotive News, October, 2007 by Barkholz, David

Byline: David Barkholz

Now that it has negotiated a cost-cutting labor contract with the UAW, Chrysler LLC can hunt for an automotive partner.

Chrysler needs a new generation of cars, up-to-date technology and better access to overseas markets. To achieve that on its own, Chrysler would need lots of time and lots of money.

"Chrysler needs new product mix, geographic diversification and access to growth markets,'' said John Casesa, managing partner of Casesa Shapiro Group LLC, of New York. "That's going to be hard to do without partners and fresh investment in the business.''

The tentative contract covering Chrysler's 45,000 hourly employees - a deal reached last week after a six-hour strike - was a necessary first step, says Dave...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.