The Big Threat!!
Fiat CEO Sergio Marchionne says trim, no excuse me, what he really said was take a chain saw to autoworkers wages or Fiat will walk away from the proposed Chrysler - Fiat merger.
Is Fiat creating a set of circumstances so they can walk away from the Chrysler deal and not lose face? Was there ever a deal to begin with?? I always wondered how a company like Fiat considered to be in such a poor (very poor) financial position could partner with a company which itself is technically bankrupt. Even with lots of government help somebody has to have a balance sheet and cash on hand.
No one knows how this is going to play out, but moves are being made to blame the CAW for the failure of these talks and frankly I don't like it. My advice to CAW President Ken Lewenza, "play brinkman", go along with the demands and let Marchionne wear the results.
The reason for my advice to Ken is as follows, if there is no deal to be made and the CAW was ready to play ball then no blame on the CAW. If however Ken says "no" and this is used as the excuse for the deal to fall apart, Fiat walks, and CAW gets the blame. Chrysler then goes into bankruptcy and some judge in the United States rolls back the labour costs anyway. Same scenario as Delphi.
Call their bluff Ken, "play brinkman".
Now how can our friends over at the Windsor Star help?
Windsor Star readers may have noticed a very large puff piece on Sergio Marchionne, CEO of Fiat, a few weeks ago. As a Canadian of Italian heritage I thought it was very nice. I also thought it was nice of the Star to note that Mr. Marchionne is a graduate of the University of Windsor, a very prominent one, and we are all proud.
But as a Canadian citizen and resident of the Windsor Essex region I am expecting much more from the Windsor Star than a puff piece. Chrysler is still a huge employer in the Windsor Essex region and what happens to Chrysler is very important. And if there is an Italian company or anyone else interested in partnering with Chrysler, we should know a great deal about them, especially their financial position.
Special request to Windsor Star Top Honcho Jim Venney and assistant top honcho Marty Beneteau, pleaseeeeeeeeeeee send out one or two of your best "super snoopers" and let's do an expose on the financial abilities (if they have any) of Fiat. What could be more important? It's only Fair Play to know if the game is for real.
Yes and let's know more, much more, about that miracle turnaround that took place in Italy. The Agnelli family still own 30% of Fiat and they have huge political influence in Italy. So the first question to ask is, what role if any did the Italian government play in this turnaround? Once we know that the rest is easy.
Gosh, I hope the Star gets on this right away.
