Chrysler strikes deal with union in survival bid
Chrysler strikes deal with union in survival bid

Washington  - Troubled carmaker Chrysler, the smallest and most endangered of the "Big Three" US automakers, announced a deal with union workers that could help it meet Thursday's government deadline to prove itself viable or face bankruptcy.

Sunday's tentative contract with the United Auto Workers must still be ratified by union members. Canadian union workers voted Sunday to accept an earlier deal with similar concessions on wages and benefits.

Meanwhile, Chrysler is still seeking billions of dollars in concessions from creditors before Thursday's deadline, which was imposed by US President Barack Obama's government in exchange for interim financing to keep the company afloat earlier this year.

The union deal is expected to help Chrysler in negotiations to form a partnership with Italian carmaker Fiat, which the Obama administration has advocated.

Meanwhile, General Motors, the largest of the Big Three, facing its own June 1 government deadline to prove viability or face bankruptcy, was expected to announce further cost-cutting moves on Monday, the Bloomberg financial news agency reported. (dpa)

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