Tag Links: fiat, uaw, machionne, FCA

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Fiat Chrysler Automobiles chief executive officer Sergio Marchionne has said he would seek new methods of lowering expenses or hiking model prices to fend off the additional labor costs stemming from the recently ratified UAW contract.

The new four-year labor agreement between the company and the UAW union might increases FCA expenses by another $2 billion over the life of the contract – the automaker said it now needs to find a suitable strategy to lower expenses or lift vehicle prices, according to the top ranking executive. “The number is actually less than that but it is broadly in line with the cumulative cost increase that we are expecting over the period of time,” commented Marchionne after pointing out some analysts estimated the tally at around $2 billion. “That number needs to come out either of the market in terms of pricing or it needs to come out of the capital structure — the cost of running this thing.”
 



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Marchionne Says UAW Deal Will Cost Fiat Over $2 Billion - Seeks Cost Cuts

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