Chrysler CEO Says 'Long Road' to Contract Conclusion With CAW

DETROIT--Chrysler Group LLC Chief Executive Officer Sergio Marchionne said negotiations on a new contract aren't near completion with the Canadian Auto Workers union.

The union is trying to reach a collective bargaining agreement before the current one expires on Sept. 17.

"I think we've made some progress, but there is a long road to travel between now and conclusion," Marchionne said at an event in Detroit on Friday.

The U.S. auto makers are trying to get concessions from the union, saying that Canada has become the most expensive place in the world to build vehicles. The strength of the Canadian dollar, combined with the union's resistance to accepting some cuts that U.S. workers have already made, have made Canada less competitive.

"I think the facts are the facts and I think ignoring them is sweeping them under the carpet is not going to make anybody's life better," Mr. Marchionne said. "My sincere hope we come to a stark realization where we are and we move on from here."

The CAW is taking an unusual tactic of attempting to negotiate contracts with all three Detroit auto makers at the same time. It normally focuses on one at a time and patterns the successive contracts after the first.

The union has said it is willing to strike all three at the same time as well if it can't reach an agreement.

Write to Christina Rogers at [e-mail]

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