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Fiat To Pay $3.65 Billion For Remaining Chrysler Shares

Italian automaker Fiat SpA announced Wednesday that it reached an agreement to acquire the remaining shares of Chrysler for $3.65 billion in payments to a union-controlled trust fund. Fiat already owns 58.5 percent of Chrysler's shares, with the remaining 41.5 percent held by a United Auto Workers union trust fund that pays health care bills for retirees. Under the deal, Fiat will make an initial payment of $1.9 billion to the fund, plus an additional $1.75 billion upon closing the deal. Chrysler will also make additional payments totaling $700 million to the fund as part of an agreement with the UAW. The deal is expected to close on or before Jan. 20, according to a statement from Chrysler. Sergio Marchionne, CEO of both Fiat and Chrysler, has long sought to acquire the union's shares in order to combine the two companies. "The unified ownership structure will now allow us to fully execute our vision of creating a global automaker that is truly unique in terms of mix of experience, perspective and know-how, a solid and open organization," Marchionne said in a statement issued by Turin, Italy-based Fiat. The deal eliminates the need for an initial public offering of the union fund's stake, which analysts had previously valued at $5.6 billion. Fiat went to court last year seeking a judgment on the price, but the trial date was set for next September. Marchionne can't spend Chrysler's cash on Fiat's operations unless the companies merge. In recent months he made it clear that he preferred to settle the dispute without an IPO, but filed the paperwork for the offering in September at the trust's request. Chrysler's profits have helped prop up Fiat on the balance sheet as the Italian automaker struggles in a down European market. The Auburn Hills, Mich., automaker earned $464 million in the third quarter on U.S. sales of the Ram pickup and Jeep Grand Cherokee, its ninth-straight profitable quarter. The results boosted Fiat, which earned $260 million in the quarter. Without Chrysler's contribution, Fiat would have lost $340 million. UAW/Unions Chrysler Fiat

Here's what the UAW will be angling for in next year's contract negotiations

The United Auto Workers union is about to enter a new round of negotiations with the Detroit Three automakers, and this time, the focus is on the end of the two-tier wage system. Introduced in 2007, the two-tier wage system was enacted to allow General Motors, Ford and Chrysler to categorize its hourly employees under two categories: Tier 1 for veteran employees with full rights and benefits, and Tier 2 for short-term or entry-level employees compensated under a different schedule. The idea was that the system would permit the automakers to invest more in their plants and hire new employees as part of their respective recovery plans without being saddled with all the costs associated with hiring full-time employees. Now that the automakers are (more or less) back on their proverbial feet, however, the UAW wants to see an end to the two-tier system, and will likely make that a center-point of its negotiations next year to replace the current arrangement that is scheduled to end in September 2015. Not all members of the UAW will necessarily be interested in ending the two-tier system, however. According to The Detroit News, some Tier 1 workers may be more interested in negotiating a raise in their hourly rate – something which they haven't received in almost a decade. Tier 2 workers, meanwhile, may be more motivated to keep the tiered system in place, as their arrangement includes provisions for profit-sharing payments that have seen the automakers pay out billions to so-called short-term employees in lump-sum payments. Reconciling the two competing demands from two categories of union members and presenting a united front in negotiations may prove the biggest challenge for the UAW's new president, Dennis Williams. And with the right to strike – something which was suspended during the last round of negotiations in 2011 – the union has a bigger bargaining chip in its pocket.

Chrysler Pacifica's Fam Cam is a great feature that needs to be on more cars

The CDC and various other official entities encourage or demand parents to place their children in a rear-facing child seat from birth until the ages of 2 to 4. That obviously means a driver or front passenger cannot see them, necessitating a mirror that you can see from the car's rearview mirror. As someone who constantly moved his son's rear-facing child seat between different cars every week, I can firmly recommend a mirror like this with a swivel base, as it is so much easier than others to mount and adjust.  But you know what's better than a mirror? The Chrysler Pacifica's "Fam Cam." In between the second and third rows, in the middle of the van, is a little glossy black disk in the ceiling that contains cameras that display images of second and third rows. There are daylight color and night time infrared camera views as well (although the daylight one makes certain darker colors look lilac purple). You can also enlarge one of the outboard second-row seats for a better view. Any of these above options allows you to see your children many times better than is possible with a mirror, especially at night. Just look at the difference below. Basically, you can't see your kid at all with the rearview mirror at night. Turning on the overhead map light helps, but my son wasn't too keen on having an interrogation lamp in his face, and it's certainly not ideal for sleeping, either. A given car's backseat position can also mean that the forward-facing child mirror is below the rearview mirror's line of sight, meaning you have to choose between seeing your kid or seeing what's going on behind your vehicle. Again, advantage Fam Cam. Here's another benefit. It's usually very difficult, if impossible, to mount both a forward-facing mirror and a tablet holder at the same time. I usually got around this by attaching the mirror to the middle seating position's head restraint, but that's obviously not an option in a vehicle with captain's chairs. Now, while I was literally able to mount both in the Pacifica for the purposes of illustrating my point, it was not easy and both mirror and tablet holder fit poorly. Using Fam Cam is obviously a better option. (Also a shout-out for Chrysler's positioning of the third-row USB port, which made it super-easy to keep the Galaxy charged).  Now, to be fair, the Kia Carnival and Honda Odyssey offer a similar rear seat spy camera feature, and we like those, too.