Just Say No to Kirk

[Dragon]

http://www6.autonet.ca/News/story.cfm?stor...3972132-ap.html

DETROIT (AP) - The head of the Canadian Auto Workers says he will try to thwart billionaire investor Kirk Kerkorian's bid for Chrysler, fearing Kerkorian will cost thousands of workers their jobs.

CAW president Buzz Hargrove said Tuesday that Kerkorian's Tracinda Corp., as well as private equity investors who are studying Chrysler, have a history of hurting workers.

"We don't have much confidence or trust in Mr. Kerkorian," Hargrove said in a telephone interview with The Associated Press. "He's made billions by coming in, buying low, cutting jobs and throwing people out of work, then selling," Hargrove said.

But Terry Christensen, a Los Angeles lawyer for Kerkorian, said Kerkorian has built companies in the past.

"I would just say that Mr. Kerkorian has a very strong history of building companies and expanding employment," Christensen said Tuesday.

The CAW represents about 11,000 Chrysler workers in Canada. Its contract with the U.S.-based wing of DaimlerChrysler AG doesn't expire until September 2008, a year later than its U.S. counterpart, the United Auto Workers.

A UAW spokesman declined comment on Kerkorian.

Hargrove said the CAW is most interested in suitors who would keep Chrysler intact and honour the terms of its contract. He also said he has had no contact with Kerkorian's group, nor would he want any.

"No, not interested," Hargrove said when asked if he would entertain talks with Kerkorian.

Chrysler has three Canadian plants that make its staple minivans as well as the Chrysler 300 sedan and Pacifica crossover vehicle as well as the Dodge Charger sedan and Magnum station wagon.

On Thursday, Tracinda announced in letters to DaimlerChrysler that it was prepared to make a US$4.5 billion cash offer for Chrysler and would take the company private. Tracinda adviser and former Chrysler executive Jerome York said it would offer the UAW substantial equity in Chrysler in order to solve the company's rising health-care and unfunded pension costs.

Taking the company private, York said in a letter to DaimlerChrysler chief executive Dieter Zetsche, would be a long-term approach to solving Chrysler's problems without having to worry about earnings per share results "for the initial five, six or seven year period it will likely take to build Chrysler into a robust and lasting, stand-alone entity."

The letters didn't mention offering an equity stake to the CAW, but Hargrove said the union is not interested in that.

"We see absolutely no advantage to that whatsoever," he said.

Christensen would not say if Kerkorian eventually would take Chrysler public.

"Whatever the ultimate result is with respect to going public or not, we don't think this is a situation where you can save the company by just eliminating all its people," he said. "You have to sell cars. You have to have a business plan that expands the company and expands the revenues of the company, not just eliminates employees."

Kerkorian, Christensen said, owns no stake in Chrysler at present, but entered the bidding to strengthen it.

"He thinks Chrysler is a very important company, and even though it's been under a Daimler wing for a while, it's still an American icon," Christensen said. "And every effort should be made to make it strong. That's how he feels about it."

Tracinda wrote a letter of interest to Chrysler's investment bank, J.P. Morgan Chase & Co., on Feb. 28 and was told that Chrysler was receptive, Christensen said. But then specific financial data was limited to a few other firms, so Tracinda went public with its offer, he said.

DaimlerChrysler has said only that it has defined criteria for its decision-making process and it is reviewing all options for Chrysler.

The company's letter said long-term, patient investing has been its approach, citing its decade-plus of investment in Chrysler, its eight years as controlling shareholder of Metro-Goldwyn-Mayer and 20 years as controlling shareholder in MGM Mirage.

Last week's offer from Tracinda, which tried to buy Chrysler in 1995 and lost out when the company merged with Daimler-Benz three years later, came a day after a DaimlerChrysler shareholders' meeting in Berlin that was marked by simmering tension over the automaker's future.

Tracinda on Friday said in a statement that because of the "brutal" economics of the North American auto market, the only realistic plan for Chrysler moving forward was one in which all parties had an equal stake.

The Kerkorian bid is slightly lower than at least one competing offer from Canadian auto parts supplier Magna International Inc., worth a reported $4.7 billion. Two private equity groups also have expressed interest in the Auburn Hills-based Chrysler Group.

Cerberus Capital Management LP and a consortium of investors led by Blackstone Group each have reviewed Chrysler's finances and were expected to make bids.

DaimlerChrysler's U.S. shares fell 45 cents, or 0.53 per cent, to close at $84.02 on the New York Stock Exchange.

[CARBIZ]

I think this man is just trying to make up for the fact that Hot Wheels and dinkey toys came out long after he was a child and he wasn't able to play with them when he was growing up. Shouldn't he be at Happydale Acres by now?

[the_yellow_dart]

We just need a Ram plant now, and Canada will make every Chrysler worth buying!

[Hudson]

I don't see what the CAW is worried about. The two assembly plants in Canada are among the best (from a product and capacity utiliization perspective) that Chrysler has. If anything, people in St. Louis should be worried. I think Kerkorian is the one who SHOULD take over Chrysler.

[RJB]

Oh man, no way should Kirk be given any more power. His ego is already at maximum capacity. Send him back out on the Hale Bop comet to lay to rest once and for all.

[FloydHendershot]

I think Kerkorian is the one who SHOULD take over Chrysler.

Do you care what happens to the American Auto industry?

[FAPTurbo]

This happens to be one of the reasons why I hope Magna is successful in obtaining Chrysler, or a good portion of it. As much as I hate the CAW... I happen to dislike Kirk Kerkorian even more.

Magna is very good with the CAW, and I think that the lack of animosity between Frank Stronach and the union will allow for some bargaining that will be good for Chrysler's future.

[Hudson]

Do you care what happens to the American Auto industry?

Absolutely. From what I've seen, Kerkorian seems to be positioning himself for his own legacy. Wouldn't he go down in history as a corporate great if his last great purchase eventually revives an American automaker?

[ZL-1]

Would Kerkorian seek an alliance with Renault-Nissan if he took over Chrysler?

[CARBIZ]

It will take more years to turn Chrysler around (if at all possible) then Kirk probably has left on this planet, so I am more inclined to think he is just in it to dissect the pieces and carve it up for a profit. Besides, isn't that how he has made a goodly chunk of his money in the past?

[Hudson]

It will take more years to turn Chrysler around (if at all possible) then Kirk probably has left on this planet, so I am more inclined to think he is just in it to dissect the pieces and carve it up for a profit. Besides, isn't that how he has made a goodly chunk of his money in the past?

Sure...that's how he's made most of his money. He also runs the MGM Mirage and has made money there.

Don't you think that the thought of one's own mortality hits a person at some point? Don't you think after that point, making MORE money that you won't spend could take second place to how you'll be remembered after you're gone? Do you think Ted Turner is giving a billion dollars away just to be a good guy or could it be that he wants to be remembered with the likes of the Carnegies of the world who gave more than just a little back? I'm not saying that this is an entirely bad thing...but if it takes the idea of leaving a positive legacy behind for these folks to make the world a slightly better place, I'm not against it.

[FloydHendershot]

Sure...that's how he's made most of his money. He also runs the MGM Mirage and has made money there.

Don't you think that the thought of one's own mortality hits a person at some point? Don't you think after that point, making MORE money that you won't spend could take second place to how you'll be remembered after you're gone? Do you think Ted Turner is giving a billion dollars away just to be a good guy or could it be that he wants to be remembered with the likes of the Carnegies of the world who gave more than just a little back? I'm not saying that this is an entirely bad thing...but if it takes the idea of leaving a positive legacy behind for these folks to make the world a slightly better place, I'm not against it.

The assumption people change and want to be remembered kindly is whisical, imho of course.Kirk built his legacy on being a SOB.

Why not go down in history as the biggest SOB in history?

Turner is different, he was always eccentric. Capt. Kirk is the corporate Raider and will go down in history as such. Reminds me of the movie Wall St.

[Hudson]

The assumption people change and want to be remembered kindly is whisical, imho of course.Kirk built his legacy on being a SOB.

Why not go down in history as the biggest SOB in history?

Turner is different, he was always eccentric. Capt. Kirk is the corporate Raider and will go down in history as such. Reminds me of the movie Wall St.

Have you read the letter York sent to Zetche? it makes them out to be the best choice.

[VenSeattle]

I'm actually for Kirk. I think he's the only one that will give Chrysler Group a fighting chance. Yes, the unions may hate him... but this is about saving Chrysler the company... not the Unions or a certain percentage of jobs.

[Hudson]

I'm actually for Kirk. I think he's the only one that will give Chrysler Group a fighting chance. Yes, the unions may hate him... but this is about saving Chrysler the company... not the Unions or a certain percentage of jobs.

I can't necessarily say that I've always liked Kerkorian, but I'd back his side (if he had a fighting chance) in this case. I think his plan has the best chance of saving UAW jobs...and possibly the UAW itself. I'd like to see Chrysler become "American" again and independent. The Kerkorian plan claims to want to invest years into the automaker:

"The returns will not come quickly. Investors that feel the need to show 'mark to market' results in their funds in relatively short time frames (just a few years) will not be willing to invest as necessary over an unusually lengthy period of time to achieve the necessary end results."

"Long term, patient investing has been Tracinda's approach...That is what we believe all the Chrysler constituencies need. Not a "quick fix" that may show good results three or so years from now, only to have the company possibly slip into another crisis situation. But a lasting fix that builds on the fundamental requirements in the automotive industry of product newness and quality, and in the process provides returns not only to the investors, but to the employees as well through their ownership stake."

[FloydHendershot]

I can't necessarily say that I've always liked Kerkorian, but I'd back his side (if he had a fighting chance) in this case. I think his plan has the best chance of saving UAW jobs...and possibly the UAW itself. I'd like to see Chrysler become "American" again and independent. The Kerkorian plan claims to want to invest years into the automaker:

"The returns will not come quickly. Investors that feel the need to show 'mark to market' results in their funds in relatively short time frames (just a few years) will not be willing to invest as necessary over an unusually lengthy period of time to achieve the necessary end results."

"Long term, patient investing has been Tracinda's approach...That is what we believe all the Chrysler constituencies need. Not a "quick fix" that may show good results three or so years from now, only to have the company possibly slip into another crisis situation. But a lasting fix that builds on the fundamental requirements in the automotive industry of product newness and quality, and in the process provides returns not only to the investors, but to the employees as well through their ownership stake."

As nice as this sounds once in control all Tracinda has to do is "re-evaluate" or make decisions based upon "further review"

When you take a date out to dinner you dont spend the meal telling them how you plan on f*cking them.

Of course if you are kerkorian, you are thinking "F*cking them out of what?"

I dont trust this guy for a second and my opinion is based on his past actions and usual modus operendi-- not this sweet talk as he attempts to court another "last" score.

Edited April 13, 2007 by FloydHendershot

[AxelTheRed]

Unless Kerkorian can show a proposal on how he can fix Chrysler Corporation permanantly and make it strong enough to stand on its own again, I'm going to say f@#king forget it.

[Hudson]

As nice as this sounds once in control all Tracinda has to do is "re-evaluate" or make decisions based upon "further review"

When you take a date out to dinner you dont spend the meal telling them how you plan on f*cking them.

Of course if you are kerkorian, you are thinking "F*cking them out of what?"

I dont trust this guy for a second and my opinion is based on his past actions and usual modus operendi-- not this sweet talk as he attempts to court another "last" score.

That's how I plan my dates.

In any case, has Kerkorian and Tracienda taken apart every company they've ever worked with?

[VenSeattle]

Unless Kerkorian can show a proposal on how he can fix Chrysler Corporation permanantly and make it strong enough to stand on its own again, I'm going to say f@#king forget it.

Then Chrysler is out of luck and will close because DaimlerChrysler can't even do that.