Fiat Chrysler Clashes With Union Spoiling for Another Strike
- Carmaker may have harder time than Ford securing new contract
- BofA flags risk that concessions pose to Fiat’s profit margins
Photographer: Jeff Kowalsky/Bloomberg
This article is for subscribers only.
Fiat Chrysler Automobiles NV, the Italian-American automaker in the midst of merger talks, has little room to maneuver in negotiations with the United Auto Workers union that’s turned its attention to the company after securing new contracts with its U.S. rivals.
The UAW won’t want to hear pleas of poverty from a company that just forecast record profit and is mapping out a plan to join forces with France’s PSA Group. And whereas Ford Motor Co. had an easy time getting a deal done with the union, Fiat Chrysler faces risk of a General Motors Co.-style walkout unless it agrees to concessions that compromise its plum position as the Detroit carmaker with the lowest labor costs.