Fiat boss ready to ditch Chrysler tie-up

Fiat SpA's chief executive, facing a two-week deadline to work out a partnership with Chrysler LLC, warned the troubled US carmaker's unions he would ditch the idea unless they agreed to cut labor costs.

In a clear message to US and Canadian unions, Sergio Marchionne told yesterday's Globe and Mail newspaper a deal on the partnership had only a 50-50 chance of succeeding because of lack of progress in talks with union leaders.

Canadian unions were especially resistant, he said.