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Cars and Drivers

GM And UAW Gang Up On Daimler

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published

Reuters reports that The Times has found out from sources inside GM (GM) that it will not bid for Daimler unit (DCX) Chrysler. It is concerned that it cannot take on the excess capacity. That would leave Canadian parts company Magna and some private equity firms.

But, the UAW may make a deal for Chrysler almost impossible. It is promising that it will not give up more jobs or benefits, even if it means a strike. Buyers looking at Chrysler have to get a bit nervous about talk of the auto company being shut down for any length of time. Even if they plan to break the company into pieces, it will not be as attractive a move if the UAW plans to be aggressive in keeping labor costs high.

The union members of Daimler’s board have already said they would resist a move to sell the Chrysler unit. It would appear that their brethren in the US plan to put on pressure of their own.

A rock and a hard place.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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