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Final Toledo Jeep decision may have nothing to do with city's efforts

Toledo, OH is doing all that it can to keep production of the Jeep Wrangler in its boundaries, but the biggest issue facing the plant may be insurmountable, no matter how desperately the city wants to keep the Wrangler local. The Wrangler is built in a rather interesting manner at the Toledo Supplier Park: Fiat Chrysler only handles the very final assembly of each vehicle, while two other companies, Kuka, a German firm, and Hyundai-Mobis, a member of the sprawling Hyundai empire, produce the body and chassis, respectively. The vehicles are then transferred over to the FCA part of the park, where they're painted and completed. This was, as The Detroit News explains, a convenient arrangement back in 2006 when the supplier park opened. Chrysler, which was still owned by Daimler at the time, arranged for Kuka and Mobis to handle production, saving it a huge sum of money. Both suppliers own their own machinery and buildings and employ their own workers. Now that FCA is a relatively healthy entity, though, there's not a lot of need to be sharing profits with two other companies. "What [FCA boss Sergio Marchionne] would like is to have the advantages of high-capacity utilization, owning that capacity and taking advantage of that for himself versus having a supplier doing some of the things his competitors do internally," David Cole, chairman emeritus at the Ann Arbor, MI-based Center for Automotive Research, told The News. "It really adds another level of complexity to the situation." While Sergio Marchionne is a man that generally gets what he wants, it seems unlikely that either Mobis or Kuka would give up their role quietly. According to Jon Zapf, Mobis North America's chairperson for UAW Local 12, the company "definitely wants to maintain their part of this production process." According to The News, Jeep is likely to announce the location of next-generation Wrangler production in June. Expect to hear much more on this one in the coming months.

Federal judge throws out GM's racketeering lawsuit against Fiat Chrysler

  DETROIT — A federal judge on Wednesday threw out a racketeering lawsuit General Motors had filed against smaller rival Fiat Chrysler Automobiles, saying the No. 1 U.S. automaker's alleged injuries were not caused by FCA's alleged violations. GM officials said in statement they "strongly disagree" with the order by U.S. District Court Judge Paul Borman, whom the automaker had sought to have removed from the case, and would appeal. "There is more than enough evidence from the guilty pleas of former FCA executives to conclude that the company engaged in racketeering, our complaint was timely and showed in detail how their multi-million dollar bribes caused direct harm to GM," GM said in a statement. The Detroit company added that Borman's decision "would let wrongdoers off the hook." GM filed the racketeering lawsuit against FCA last November, alleging its rival bribed United Auto Workers (UAW) union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. GM was seeking "substantial damages" that one analyst said could have totaled at least $6 billion. FCA had called the case meritless and asked Borman to dismiss it. On Wednesday, Borman dismissed the lawsuit "with prejudice," meaning GM cannot refile the complaint. "The direct victims of defendants' alleged bribery scheme are FCA's workers," Borman wrote of FCA. "GM's high labor costs were not an injury proximately caused by FCA's bribes, and any competitive injury that GM suffered as a result of FCA's advantage in labor costs is an indirect injury." "The dismissal of GM's complaint with prejudice earlier today vindicates our position," FCA said in a statement. On Monday, the Sixth U.S. Circuit Court of Appeals denied GM's petition to remove Borman from the case, but said the two automakers' chief executives didn't have to meet to try to settle the case as Borman had ordered. In calling for that, Borman had called the lawsuit "a waste of time and resources."   Government/Legal UAW/Unions Chrysler Fiat GM

Marchionne's pay as Fiat CEO falls to $5M

Sergio Marchionne will be buying fewer of his iconic sweaters, as his 2013 pay from Fiat took a dip from $6.24 million to an even $5 million. Marchionne, who was also CEO of Chrysler, made $307,989 thanks to some stocks and benefits from the American company, although he didn't take a salary. Of that $5 million paid by Fiat, $3.19 million came from Marchionne's fixed salary while the remaining $1.8 million was paid for hitting unspecified performance targets.
The news comes from Fiat's compensation reports, which also showed that the 61-year-old, who already owned three million shares in Fiat at the end of 2013, was able to receive an additional 2.3 million shares through a stock incentive program. According to Automotive News Europe, the additional shares would be worth about $25 million at today's prices, although so far, Marchionne has declined to claim the extra shares.
According to ANE, Fiat reported a 2013 trading profit of $4.7 billion.