Chrysler, autoworkers negotiate

DETROIT, Oct. 7 (UPI) -- Negotiators at Chrysler LLC said they remain optimistic about reaching a contract deal with the United Auto Workers union.

Union spokesmen declined comment Saturday as negotiations at Chrysler's Auburn Hills headquarters intensified, The Detroit News reported Sunday.

The union now is focused on the smallest of Detroit's Big Three automakers for its next four-year labor pact, sources close to the negotiations told the News.

The union reached a tentative deal with General Motors Corp. last month after a two-day strike and put its talks with Ford on hold pending the Chrysler outcome, the News reported.

The union faces unknown negotiating territory since Chrysler now is privately owned by Cerberus Capital Management LP, which bought the controlling interest in Chrysler from Germany's DaimlerChrysler AG in August.

Cerberus is expected to push hard to cut labor costs and wants the same healthcare concessions the union gave Ford and GM in 2005, which could save Chrysler $300 million a year, the News reported.