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FCA and UAW deal could mean huge production shakeups

The big labor contract between Fiat Chrysler Automobiles and the United Auto Workers is likely to lead to some very serious production shakeups across the company's North American manufacturing operations. That's according to a new report from Automotive News, which details the sweeping changes at no fewer than five production facilities in Michigan, Illinois, Ohio, Mexico, and Poland. So without further ado, here's what's going where, presented in easy to digest bullet form. Ram 1500 production would move from Warren, MI to Sterling Heights, MI Warren, MI would be retooled for unibody production and would handle the Jeep Grand Wagoneer and could potentially build Grand Cherokees to ease the strain on Detroit's Jefferson North factory Chrysler 200 production would move from Sterling Heights, MI to Toluca, Mexico Dodge Dart production would move from Belvidere, IL to Toluca, Mexic Fiat 500 production, which is currently handled by Toluca, would be concentrated in Poland, where the Euro-spec Cinquecento is built Jeep Cherokee production would move from Toledo, OH to Belvidere, IL to make room for Wrangler and Wrangler Pickup production Like we said, those are some big changes. But, as FCA CEO Sergio Marchionne said in an earlier interview with Automotive News, this kind of shakeup would make a lot of sense. In that August interview the exec said that automakers moved truck production to Mexico because they were "threatened" by the UAW. "The only thing [the UAW] want is to move the truck back. Which is right. If you move the truck back here, which is [the UAW's] domain, [and move] all the cars that we get killed on somewhere else, we could actually make sense of this bloody industry and actually increase the number of people employed in this country and really share wealth because we are making money," Marchionne told AN. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing UAW/Unions Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA toluca warren sterling heights

NHTSA closes investigation on 4.7M FCA power modules, no recall

FCA US hasn't had the best time with recalls as of late. Not only did the company recently agree to greater safety oversight and paid $105 million to the government, that came just days after hacking fears prompted a 1.4-million model recall campaign. However, a recent decision to close an investigation by the National Highway Traffic Safety Administration means that the automaker doesn't have to worry about another major recall possibly affecting 4.7 million vehicles, according to the agency's report (as a PDF). Last September, the Center for Auto Safety petitioned NHTSA to investigate an alleged problem with the totally integrated power module (TIPM) on these FCA US models. The group claimed that a fault with the component could cause a variety of maladies, including stalls, not starting, catching fire, unintended acceleration, and airbag non-deployment. At the time, it also submitted 70 cases where this had reportedly happened. According to NHTSA, "no valid evidence was presented in support of claims related to airbag non-deployment, unintended acceleration, or fire resulting from TIPM faults and these claims were found to be wholly without merit based on review of the field data and design of the relevant systems and components." The agency did find signs of an issue with the fuel pump relay in some Jeep Grand Cherokees and Dodge Durangos, but FCA US issued recalls for the problem in September 2014 and February 2015. Without anything else to go on, the Feds don't think it's worth investigating this topic any more.

Dodge offering novel 1-year lease on '14 Challenger and Charger models

Dodge is just days away from unveiling refreshed versions of the Charger and Challenger at the 2014 New York Auto Show, models promising updated styling and new powertrain options. Depending on how you look at it, the company is either so confident in its forthcoming 2015 models that it's offering an interesting Double-Up lease deal on the current vehicles, or it's so eager to clear out existing stock that it's resorting to novel lease deals. In any case, what they present is an interesting scenario, one which allows buyers to get the existing model right now, and then trade up to the facelifted 2015 models in one year.
Starting April 17, when the refreshed cars debut through the end of August, buyers can lease a 2014 Charger or Challenger for one year and exchange it for a three-year lease on a 2015 model next year, with no additional money down and the same monthly payment. Customers can even switch vehicles when the new lease starts. If drivers want to buy the '15, they get $1,000 off the purchase price. To be eligible, both leases must use the same dealership and be financed through Chrysler Capital. The Double-Up deal excludes the SRT versions of both cars and Charger SE models.
To offset the flood of one-year-old models coming back to dealerships, Dodge has struck a deal with rental car agency Enterprise, which has agreed to buy them all. "One-year leases are highly unusual in the industry," said company spokesperson Ralph Kisiel, and the fleet sale deal is what makes it possible.