The four-year wage agreement between Fiat Chrysler Automobiles NV and the United Auto Workers union, and the resulting amicable relations between Fiat Chrysler CEO Sergio Marchionne and UAW president Dennis Williams, signals that the union could become a key ally in the automaker's search for a merger partner,
a
Wall Street Journal
report said.
The four-year wage agreement between Fiat Chrysler Automobiles NV and the United Auto Workers union, and the resulting amicable relations between Fiat Chrysler CEO Sergio Marchionne and UAW president Dennis Williams, signals that the union could become a key ally in the automaker's search for a merger partner,
a
Wall Street Journal
report said.
Marchionne wants to merge with another company because he believes that “car companies waste billions of dollars in capital because they can't effectively collaborate,” the
Journal
article said.
The union “must be on board” with a merger in order for a deal to succeed, the
Journal
report said. The UAW is one of the largest investors in General Motors Co., which is Fiat Chrysler's main merger target, the article noted.
GM rejected Fiat Chrysler's merger proposals in 2012 and 2008, the report said.
“Mr. Williams, already philosophically aligned with Mr. Marchionne on several issues, can push the matter ⦠when he negotiates with GM later this month,” the
Journal
article said. (Source:
Wall Street Journal
, Sept. 17, 2015.)
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