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MiscellaneousChrysler Employees to Purchase Chrysler Group?
Posted by mike on 2007/4/21 9:44:22 (1347) reads

The Detroit News is reporting that a group of Chrysler employees is in the process of putting together a plan for 50,000 employees to purchase a 70% stake in Chrysler Group:

The head of the United Auto Workers said the union hasn't ruled out making an offer to buy the Chrysler Group, but experts are mixed on whether employee ownership makes sense for Chrysler.

In an interview Friday with WJR Radio in Detroit, UAW President Ron Gettelfinger said the union has reviewed a "very sketchy" proposal made earlier this month by a group of about 25 Chrysler employees in Toledo to acquire a 70 percent stake in Chrysler through an employee stock ownership plan, or ESOP, in exchange for health care concessions.

"Ever hear the statement 'all options are on the table?' " Gettelfinger responded when asked whether the UAW would bid for Chrysler. "We haven't ruled anything out."

What do you think? If you were a Chrysler Employee, would you be for this plan? How about if they included Jeep owners - would you buy a piece? Let us know in the comments area or by voting in our InstaPoll in the right-hand column.

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Poster Thread
XJameson
Posted: 2007/4/25 9:23  Updated: 2007/4/25 9:23
Just popping in
Joined: 2005/6/29
From: Chicago, IL
Posts: 14
 Re: Chrysler Employees to Purchase Chrysler Group?
Here's an interesting interview with Lee Iacocca:
http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/30/8405493/index.htm?postversion=2007042508

Note he mentiones that "...Maybe you can sell off Jeep..." making it sound like Jeep is the only thing with any value.

Poster Thread
Brian_R
Posted: 2007/4/24 16:26  Updated: 2007/4/24 16:26
Quite a regular
Joined: 2005/11/28
From:
Posts: 47
 Re: Chrysler Employees to Purchase Chrysler Group?
ESOP in even a MLP scenario with Magna may be the way to go. You would get significant concessions, making the 30% more attractive to buyers, especially if the 30% would be the GP for voting rights and control, Magna can put out the % of money they're comfortable with, and protect their interests. It would seem like a win/win to me.

Poster Thread
jason
Posted: 2007/4/24 2:14  Updated: 2007/4/24 2:14
Just can't stay away
Joined: 2005/6/30
From: glendale,az
Posts: 93
 Re: Chrysler Employees to Purchase Chrysler Group?
I see this as being very positive for the chrysler group.

jason

Poster Thread
kevinsullivan30018
Posted: 2007/4/24 9:02  Updated: 2007/4/24 9:02
Not too shy to talk
Joined: 2003/10/22
From:
Posts: 38
 Re: Chrysler Employees to Purchase Chrysler Group?
ESOP plans often end badly, but if it works to pry Chrysler from the cold dead hands of Daimler, I say go for it. They can always take the company public again down the road, or at least have more say in a future sale.
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