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Auto blog
UAW reveals more details for tentative FCA deal
Sun, Oct 11 2015Around 40,000 union workers employed by Fiat Chrysler Automobiles have a new proposed contract to vote for or against just about a week after soundly rejecting a previous proposal. Like the contract that was rejected, this new proposal was negotiated between union leadership and management at FCA. If workers vote this time to accept the contract, negotiations are likely to begin in earnest with the other two big American automakers, Ford and General Motors. The biggest sticking points that kept the previous contract proposal from being ratified revolved around so-called second-tier UAW workers. Under the rejected contract, there wasn't a clear path in place that would bring these newer hires into wage parity with first-tier workers. The newly proposed contract, however, would have second-tier employees earning around $29 per hour – the same as first-tier workers – after eight years of employment. A slightly revised profit-sharing plan is also included, as is a larger signing bonus for first-tier workers. Gone from the new contract proposal is a health-care cooperative that would combine workers from all three Detroit-based automakers into one pool. While this action had the potential to lower health-care costs for UAW members, it wasn't universally understood by rank-and-file workers, said UAW President Dennis Williams. "I was a little naive," he said. "I really thought everyone understood it. It is my fault. I should have educated people more on it. And so we did take it out of the agreement." If ratified, this new contract will go into effect immediately and will cover a four-year period. Over that course of time, the UAW expects FCA to increase its employment figures by a little more than 100 workers, according to reports. Additional details on the contract can be seen on the UAW's website here. News Source: The Detroit News, The Detroit Free Press, United Auto Workers (PDF)Image Credit: Jeff Kowalsky/Bloomberg via Getty Earnings/Financials Hirings/Firings/Layoffs UAW/Unions Chrysler Fiat FCA
Stellantis not looking for further mergers, including with Renault
Mon, Feb 5 2024MILAN — Stellantis Chairman John Elkann on Monday denied the carmaker was hatching merger plans, responding to press speculation about a possible French-led tie-up with rival Renault. Elkann said that the Peugeot owner, the world's third largest carmaker by sales, was focused on the execution of its long-term business plan. "There is no plan under consideration regarding merger operations with other manufacturers," said Elkann, who also heads Exor, the Agnelli family holding company that is the largest single shareholder in Stellantis. After abandoning the Russian market, at the time its second largest after France, and reducing the scope of its global cooperation with Nissan, Renault has been seen as a potential M&A target. Speculation intensified after an electric vehicle market slowdown forced it last week to cancel IPO plans for its EV and software unit Ampere. Its market cap remains stubbornly low at little over 10 billion euros ($10.8 billion) despite a financial recovery over the past few years. Stellantis, the product of a 2021 merger between France's PSA and Fiat Chrysler and one of the most profitable groups in the industry, has a market cap of more than 85 billion euros when unlisted shares are factored in. It has a 14 brand portfolio also including Citroen, Jeep, Opel and Alfa Romeo. NEWSPAPER REPORT Italian daily Il Messaggero had said on Sunday that the French government, which is Renault's largest shareholder and also has a stake in Stellantis, was studying plans for a merger between the two groups. A spokeswoman for Renault said on Monday the group did not comment on rumors. France's Finance Ministry had declined to comment on Sunday. Stellantis has crossed swords with the Italian government, which has accused it of acting against the national interest on occasions. Industry Minister Adolfo Urso last week raised the prospect of the Italian government taking a stake in Stellantis to help to balance the French influence. Renault shares pared gains after Elkann's comments to stand 1.2% higher by 1220 GMT, having initially risen more than 4%. Stellantis CEO Carlos Tavares, a Portuguese-national, last week said in an interview with Bloomberg that the group was "ready for any kind of consolidation" and that its job was to make sure that it would be "one of the winners". Analysts, however, question the rationale of a Stellantis-Renault merger, which would also expand the group's excess capacity in Europe.
NHTSA closes book on Jeep 'trailer hitch' recall after all
Mon, 20 Jan 2014After much debating and hand-wringing, the National Highway Traffic Safety Administration now says it has "no reservations" with Chrysler's plan to recall certain Jeep Liberty and Grand Cherokee models over concerns that their fuel tanks, which are located behind the rear axle, could rupture or leak in the event of a rear impact. The longstanding argument between the two entities saw Chrysler openly defy the Feds after a request to recall 2.7 million units back in June.
Chrysler's "voluntary campaign" will instead see it recall 1.56-million 1993-2004 model year Grand Cherokee SUVs, along with 2002-2007 Liberty models. Affected vehicles will get a trailer hitch installed free of charge, which Chrysler says will provide an additional degree of protection for the fuel tanks in the event of a crash. Jeeps with Mopar-branded hitches or hitches that were installed at the factory aren't affected by this recall.
Chrysler's argument throughout this battle has been that the Jeeps in question are no more susceptible to fires than comparable vehicles from the same time period, a position that NHTSA has seemingly arrived at as well. "Those vehicles performed at a rate similar to their peers. That is the keystone analysis as to whether something poses an unreasonable risk to safety," said outgoing NHTSA boss David Strickland during an interview with the The Associated Press.