China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
Chrysler's CEO "encouraged" by developments on aid
DETROIT (Reuters) - Chrysler LLC chief executive Bob Nardelli said on Monday he was encouraged by developments regarding federal aid for U.S. automakers.
In a message to employees, Nardelli reiterated that Chrysler's plan would allow it to survive as a "stand alone" entity but cautioned that the process was far from over.
"I am very encouraged by the developments over the weekend and the growing interest shown by Congress and the administration to provide needed financial assistance to the three Detroit automakers," he said in the memo that was seen by Reuters.
But he said the situation in Washington remained "fluid."
On Monday, the White House and congressional Democrats were finalizing a $15 billion proposal to bail out automakers. The plan would carry stiff conditions so that it could be sold to lawmakers.
The proposal mainly would address the potential collapse of General Motors Corp and Chrysler, both of which want billions of dollars in low-interest loans by the end of December. Ford Motor Co is seeking a line of credit that it could tap into if its situation worsened beyond what it expects in 2009.
The chief executives of GM, Ford and Chrysler were in Washington, D.C. last week to make an appeal for aid.
Many lawmakers questioned Chrysler's viability as a stand-alone company.
GM and Chrysler had moved toward a merger in October before a deeper downturn in sales ran down GM's cash and prompted the automaker's board to drop the talks in favor of seeking emergency funding from the government.
The United Auto Workers union has said it was willing to offer concessions, including diluting job security provisions, to automakers to help them ride out the deep downturn in U.S. auto demand.
One local UAW-Chrysler president said the UAW workers would have a right to vote on the contract changes.
"To the best of my understanding, our membership will have the right to vote on any modifications to the contract," said Jeff Hagler, president of UAW Local 412 in Warren, Michigan.
(Reporting by Poornima Gupta)
