CAW, Chrysler Focus On Fiat Alliance

Canadian Auto Workers union and Chrysler suspended contract negotiations as the struggling automaker focuses on working out an alliance with Italian automaker Fiat.

TORONTO (AP) -- The Canadian Auto Workers union and Chrysler LLC have suspended contract negotiations as the struggling automaker focuses on working out an alliance with Italian automaker Fiat.

CAW president Ken Lewenza said Thursday that he believes Chrysler is focusing on the Fiat discussions because labor talks are secondary to the partnership.

A partnership with Fiat would give Chrysler access to smaller car technology that the Detroit-based auto company currently lacks.

Governments in Canada and the U.S. told Chrysler earlier this week that it had not met the requirements for long-term bailout loans.

Chrysler was given 30 days to cement the Fiat alliance.

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