Monday, May 14, 2007

Is This The Begining of the End For the UAW

Chrysler goes to Cerberus. The UAW talked very tough, but there's only so much leverage you have when Daimler effectively had to pay somebody to take Chrysler off their hands. Now all the punditry can begin on how fast change will come and what it all means for American capitalism. My guess is that change will come quickly. No doubt Cerberus has studied the last decade of history in the auto biz and concluded that no easy-as-she-goes strategy is worth a pittance. Also, they are unlikely to tolerate any $ billion losses except for what is already in the pipe. I think the UAW will be given an offer they can't refuse right quick if they haven't been given it already.

Previous posts here and here.

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