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Fiat Chrysler and the UAW reach tentative labor deal

DETROIT — Fiat Chrysler Automobiles and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France's Groupe PSA. Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world's fourth-largest automaker. The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co. The deal with GM followed a 40-day strike in the United States that virtually shuttered GM's North American operations and cost the automaker $3 billion. The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs. Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others. "FCA has been a great American success story thanks to the hard work of our members," UAW acting President Rory Gamble said in a statement. "We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States." Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed. The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless. Under the UAW's deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs. Ford's contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs. The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

Merged Fiat-Chrysler HQ will be in London

You won't be seeing Sergio Marchionne in his famous sweaters running day-to-day operations of Fiat Chrysler Automobiles from Michigan. Although, he won't be doing it from Italy, either. The FCA CEO recently announced that the company's corporate headquarters would be located in London.
"Headquarters will be in London. It's clear that group executive functions, the board, my office, some of my functions, need to operate out of London, but that doesn't mean that I'm giving up my operational responsibilities of the US," said Marchionne to Automotive News at a press conference.
When the creation of FCA was announced, the company said its tax domicile would be in the United Kingdom. But it gave no specific location at that time. The business is still keeping most of the details under wraps.

Abarth 595 50th Anniversary Edition is a birthday present worth waiting for [w/video]

Props must be paid to the people at Abarth, who could've celebrated the 50th anniversary of the 595 - the model that put this performance brand on the map back in the 1960s - with a special edition appearance package and called it a day. But no, that's not how Abarth does things. Instead, it is producing 299 units of this 595 50th Anniversary Edition model that debuted at the Frankfurt Motor Show this week, and it's received much more than a new suit for its big 5-0 celebration.
In addition to the matte white finish and historical livery that reinterprets the original car's look, this progeny of the original 595 also receives a substantial bump in power - an increase of 20 horsepower over the standard 500 Abarth for a new total of 180. The upgraded engine is paired with an "Abarth Competizione" transmission, and the sizzling hatchback rides on 17-inch alloy wheels that hide larger Brembo brakes sized 12 inches in diameter. Not that the standard 500 Abarth sounds wimpy (quite the contrary, actually), but the 595 receives a new "Record Monza" variable back-pressure dual-mode exhaust for an even more stirring soundtrack above 3,000 rpm. The interior, meanwhile, is adorned with red leather seats featuring white inserts and red stitching, and a black leather steering wheel with red inserts, as well as its own assortment of historical logos.
The 595 50th Anniversary Edition will be available to order on September 15th, though we expect the entire lot to go quickly and haven't been told yet if any are earmarked for sale in the US. Our fingers are crossed.