U.S. automaker Chrysler Group LLC and the United Auto Workers union or UAW, reached Wednesday a tentative agreement on a new four-year national labor contract that covers about 26,000 UAW-represented Chrysler employees in the U.S. The deal, which is subject to ratification by the UAW members, calls for 2,100 new jobs to be added in Chrysler's U.S. manufacturing facilities by 2015 and $4.5 billion in additional investments.
"Less than three years ago, Chrysler was teetering on the edge of bankruptcy as our nation was thrown into the worst economic crisis since the Great Depression. This tentative agreement builds on the momentum of job creation and our efforts to rebuild America by adding 2,100 new jobs by the end of the agreement in 2015 to communities left in turmoil in the wake of the country's economic collapse," UAW President Bob King said in a statement.
Chrysler emerged from Chapter 11 reorganization in June 2009 and was bought by Italian automaker Fiat S.p.A. (FIATY.PK) in a U.S. government-brokered deal. This is the first labor agreement for Chrysler since its 2009 bankruptcy.
Auburn Hills, Michigan-based Chrysler said it will add 2,100 new U.S. positions, and invest $4.5 billion directly into retooling and upgrading of its plants in the U.S.
Last week, the UAW and General Motors Co. (GM) announced the creation of 6,400 jobs as part of their new four-year national labor contract finalized with the UAW. Meanwhile, Ford Motor Co. (F) agreed to add 5,750 hourly jobs more than the 7,000 U.S. positions it already announced.
Further, Ford pledged $16 billion in additional U.S. investments through the term of the contract, including $6.2 billion for retooling and upgrading Ford plants in the U.S. GM also pledged $2.5 billion of investment and a return of production from Mexico to the U.S.
"This tentative agreement, coupled with the new agreements at General Motors and Ford bring more than 20,000 new jobs to communities across America. Together with the jobs created in suppliers and other businesses supported by auto manufacturing, a total of 180,000 jobs will be added to the country's battered economy," King added.
Chrysler, the third largest U.S. automaker after General Motors and Ford, is the last of Detroit's big three car makers to reach a tentative labor deal with the UAW union.
The Chrysler deal comes eight days after rival Ford reached a tentative deal, which is currently struggling to get ratified by the union members. A major union local at Ford Motor reportedly on Tuesday rejected the tentative agreement by a 51.1 percent vote. However, the deal could still be ratified if most of the other local unions vote in favor of the deal. Voting at Ford will be completed by October 18.
Meanwhile, Chrysler's domestic rival General Motors reached a tentative agreement with the UAW on September 16, which was ratified by the UAW members with a 2:1 ratio on September 28. The agreement covers 48,500 hourly GM employees and is to run through 2015.
In Wednesday's regular trading session, FIATY.PK is currently trading at $6.75, up $0.49 or 7.83 percent on a volume of 4,983 shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.