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Here's why GM is giving Marchionne the cold shoulder

What's funny about an Automotive News story titled Why Won't GM Play Ball with Marchionne? is that few people outside of the Fiat CEO and his confidants understands why General Motors would play ball with the Italian company. Marchionne has said the combined entity could increase its annual earnings by $5 billion, but even an outside analyst that agreed with the number only conditionally agreed, saying, "If you assume some synergies and peak US cycle market conditions then, yes, they could get to 30 billion." However, that same analyst described Fiat Chrysler Automobiles as "probably the most challenged within the global industry." Not US industry – global. And before that revenue goal could be reached, the merged companies would need to wade through a bureaucratic swamp. Plus the executive, manufacturing, financial, platform, procurement, and international labor swamps, among a few others. This AN piece can be viewed as GM's response to Marchionne's assertions and offers of various "hugs." It lays out numerous reasons why a more focused and disciplined GM - one almost done with a major crisis and able to focus on its priorities - believes Fiat would be the desperate housewife in such a scenario. On the other hand, while AN doesn't have Marchionne's numbers, to get a better sense of where the Italian is coming from you should read more of the "Industry on Trial" special report. Not that it justifies the creation of a GM-FCA, but it shows that the capital expenditures considering the amount of automaker development overlap are, to the outside eye, staggering. Related Video: News Source: Automotive News - sub. req.Image Credit: Bill Pugliano/Getty Images Earnings/Financials Fiat GM Sergio Marchionne

FCA workers get raises, health care co-op in new UAW deal

The pending labor agreement between FCA US and the United Auto Workers is now in the hands of union members to confirm. It's expected to be accepted, but a final decision could take weeks, The Detroit News reports. Employees didn't get everything they were hoping for, and contrary to earlier reports, the two-tier wage system remains in place. However, there are attempts to lessen the difference between the levels in this four-year deal. Assuming FCA US workers agree to this offer, the starting pay for tier-two workers would go up around a dollar to $17 an hour. The other level would now begin at $25.35, about a $6 increase, and they would receive 3 percent raises in the first and third year of the deal. Both groups also get $800 in profit sharing for each percent the automaker's profit margin rises above two percent. Extra money kicks in for the second tier above eight percent. Union members get a $3,000 bonus for accepting this contract, as well. The other major change under the pending agreement is the previously rumored switch to a healthcare co-op. The goal is to collect members from the Big Three together to create a huge member base for leverage to negotiate better rates with insurance companies. The UAW is promising no increase in cost to workers, according to The Detroit News. The idea was inspired by the similar structure for the Voluntary Employee Beneficiary Association for union retirees. UAW boss Dennis Williams expects the agreement to be approved. "Once the membership looks at it, hears the explanation for it, I think they'll ratify it," he said, according to The Detroit News. The next step is to craft similar deals with General Motors and Ford. Related Video:

Ford Expedition, F-150 Limited and Cadillac V Series | Autoblog Podcast #583

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski and Assistant Editor Zac Palmer. First, they talk about the cars they've been driving, including the Ford Expedition, Ford F-150 Limited and the Mini Cooper JCW Knights Edition. Then they discuss the news, including Ian Callum stepping down from Jaguar, Cadillac's V cars and the latest in the saga between FCA and Renault. Autoblog Podcast #583 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving: Ford Expedition Ford F-150 Limited Mini Cooper JCW Knights Edition Ian Callum resigns from Jaguar Cadillac V FCA backs down from Renault merger talks Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: