Statement by Al Iacobelli, Chrysler Group Vice President - Employee Relations, Regarding the Start of 2011 Contract Negotiations with the UAW

July 24, 2011 , Auburn Hills, Mich. -  We are pleased today to officially open 2011 labor negotiations with our UAW partners.

It’s been four years since our last round of negotiations with the UAW, and since then, a lot has changed for our industry, and for Chrysler.

As we shook hands in 2007, the U.S. was on the brink of the most severe economic crisis since the Great Depression. That crisis ultimately revealed the structural flaws of the domestic automotive industry, including an unsustainable cost structure.

In order to revive the automotive industry, a complete and painful restructuring was needed. For Chrysler, that meant bankruptcy and implementing significant modifications that would enable a new company to emerge with the support of the United States Treasury and an alliance with FIAT. Through that process, we had to re-think our approach to business to achieve true and permanent change to our business model.

We appreciate that the UAW has been engaged and supportive of the changes that have been made in order to ensure the long-term stability and profitability of the company, including the implementation of World Class Manufacturing.

This year…with these negotiations, we have the unique opportunity to protect and secure Chrysler Group’s future competitiveness. This includes growing jobs intelligently by keeping labor costs competitive. While the industry and Chrysler have demonstrated some improvements to date, those gains have been modest and it is imperative that we not return to an uncompetitive state.

Negotiations are all difficult, and this one is no exception. We are committed to continue to work together with the UAW to do what’s necessary to build a strong and secure Chrysler Group.