As an April 30 deadline approaches for a Chrysler partnership with Fiat, President Barack Obama's auto task force squeezed the UAW for fresh concessions Tuesday, while Chrysler's creditors proposed a debt reduction that a Michigan congressman dismissed as “not serious.”
Chrysler, which is operating with $4 billion in federal loans, needs concessions from both the UAW and debt holders to complete a partnership with Fiat and get another $6 billion in federal loans.
In seeking UAW cutbacks, Fiat said it would build vehicles such as the Lancia Delta at U.S. Chrysler facilities -- a move that could give workers some job security.
However, Chrysler's creditors Tuesday proposed writing off $2.5 billion of $6.9 billion in debt in exchange for a 40% stake in the Chrysler-Fiat alliance, among other demands, according to documents obtained by the Free Press.
A White House official who was not authorized to speak on the record criticized the offer as “neither in the interest of Chrysler's senior lenders nor the country.”
“Our hope and expectation is that these lenders take a more constructive position … that reflects the actual situation they and the company face,” the official said.
Added U.S. Rep. Gary Peters, a Democrat whose district includes Chrysler's Auburn Hills headquarters: “This offer is an affront to taxpayers and the many thousands of Chrysler employees and retirees whose livelihoods hang in the balance of the outcome of these negotiations.”
Chrysler, which is operating with $4 billion in federal loans, needs concessions from both the UAW and debt holders to complete a partnership with Fiat and get another $6 billion in federal loans.
In seeking UAW cutbacks, Fiat said it would build vehicles such as the Lancia Delta at U.S. Chrysler facilities -- a move that could give workers some job security.
However, Chrysler's creditors Tuesday proposed writing off $2.5 billion of $6.9 billion in debt in exchange for a 40% stake in the Chrysler-Fiat alliance, among other demands, according to documents obtained by the Free Press.
A White House official who was not authorized to speak on the record criticized the offer as “neither in the interest of Chrysler's senior lenders nor the country.”
“Our hope and expectation is that these lenders take a more constructive position … that reflects the actual situation they and the company face,” the official said.
Added U.S. Rep. Gary Peters, a Democrat whose district includes Chrysler's Auburn Hills headquarters: “This offer is an affront to taxpayers and the many thousands of Chrysler employees and retirees whose livelihoods hang in the balance of the outcome of these negotiations.”
