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

In a clear message to U.S. and Canadian unions, Sergio Marchionne told Wednesday’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.

“Absolutely we are prepared to walk. There is no doubt in my mind,” Marchionne said in an interview posted on the Toronto newspaper’s website.

The Chrysler unions had to agree to match the lower labor costs of plants run by Japanese and German carmakers in the United States and Canada, he said, adding that Canadian unions were especially resistant to the idea.

Nomura analyst Michael Tyndall said Marchionne was probably not bluffing in talking tough with the unions.

“He’s playing hardball,” he said, adding that the unions’ position would make the deal too costly for Fiat. “We want them (Fiat) to walk away … I don’t see any benefits in this deal.