CAW optimistic on Chrysler

Canadian union leaders encouraged by five-year plan

Alisa Priddle / The Detroit News

Leaders of the Canadian Auto Workers union left a six-hour meeting with Chrysler Group LLC executives with substantially more optimism about the future of the automaker than they had going in.

"I left feeling pretty good, and, frankly, I went there pretty down," said CAW President Ken Lewenza, describing Thursday's meeting with Chrysler Chief Executive Officer Sergio Marchionne, which stretched from a scheduled three hours into six and included an impromptu dinner.

Lewenza said the five union leaders who met with Marchionne and members of his management team went into the Auburn Hills briefing believing analyst projections that Chrysler has only a 50-50 chance of survival given the dearth of new products in its first year of an alliance with Fiat SpA and with projections of a continued market share slide.

Chrysler officials would not comment on the meeting with the CAW.

But Lewenza said Marchionne's five-year business plan, the details of which are to be unveiled publicly Nov. 4, is refreshingly grounded in reality. The union was given some details of the plan but could not disclose all the specifics.

Market share projections are conservative and anticipate an initial loss, Lewenza said. Chrysler had 8.3 percent of the market at the end of September, down from 11.1 percent a year ago.

The business plan also is designed to succeed at low annual sales volumes in the United States, Lewenza said.

The CAW was given assurances that the automaker is pleased with the efforts of its two Canadian plants and has long-term plans for minivan production in Windsor and the Chrysler 300 and Dodge Charger and Challenger made in Brampton, Ontario.

The CAW leaders got a sneak peek of the new 300 that will be introduced next year as a 2011 model. The all-new sedan has undergone additional changes since Marchionne's team took over.

Lewenza was not at liberty to elaborate, but a source said the car is lower and sleeker with a new grille and LED headlights.

The CAW president said he is encouraged by plans to upgrade the interiors of a number of vehicles, addressing a widely held area of criticism.

The first vehicles to receive makeovers are the minivans and the Jeep Compass and Patriot, which will be relaunched a year from now with new interiors.

The minivans also will get new front grilles to better differentiate the Dodge Grand Caravan from the Chrysler Town & Country. Redesigned rear ends will have taller taillights. Down the road, a compact minivan similar in size to the Mazda5 will be added to the lineup, sources say.

The Jeeps will reportedly adopt design cues from the new Grand Cherokee that goes into production in the spring.

Lewenza said he asked Marchionne if Alfa brand vehicles will be built in Brampton, but Marchionne said those plans are too far in the future to discuss. The CEO told Lewenza only that Fiat vehicles will be built in North America and Chrysler vehicles will be better distributed globally.

Union leaders said they left struck by the focus, intensity, work ethic and confidence of Marchionne and the ferocity with which the CEO holds managers accountable with no excuses. An overview of the management structure revealed a streamlined approach and the speed with which change is being directed from the top, Lewenza said.

"We got a lot off our chest," Lewenza said of the meeting, adding that he was also surprised by the fact that "there was nothing negative in the meeting."

apriddle@detnews.com (313) 222 - 2504