UAW And Chrysler Get Ugly, Damage To Ford (F)

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According to Reuters "ratification of the tentative labor contract between the United Auto Workers union and Chrysler LLC was thrown into jeopardy on Monday after workers at four of the eight assembly plants that must vote on the deal rejected it."

While Cerberus, Chrysler’s deep pocket new owner may be able to weather a strike or give a little on the UAW terms, cross-town rival Ford (F) cannot. It has watched its sales drop 20% each of the last two months. Without the kind of concessions that GM (GM) got from the union, the future of Ford’s North American operations will be in real trouble.

Ford’s fate is in someone else’s hands for now, and that has to be a brutal blow.

Douglas A. McIntyre