UAW’s Gettelfinger says that union has no interest in keeping Chrysler stock

The UAW is positioned to become the majority shareholder of the new company that will come out of the Chrysler bankruptcy. According to UAW president Ron Gettelfinger, the UAW has no interest in retaining a long-term ownership in any auto company stock.

He said that the UAW’s Voluntary Employee Beneficiary Association (VEBA) will eventually sell its majority stake in Chrysler to fund retiree health care if the stock appreciates in a couple of years, reports Automotive News.

“As soon as the VEBA’s in a position to sell stock, we will sell stock to keep the VEBA going,” Gettelfinger said.

When Chrysler emerges from bankruptcy, the UWA will get a 55 percent stake in the new company while Fiat would get an initial 20 percent. The U.S. Treasury will get 8 percent and the Canadian government will get 2 percent.

– By: The Daily Auto Editor