2015 Fiat 500 Pop Hatchback on 2040-cars

Auto blog

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.

Marchionne hopes Apple will partner with Fiat

Apple wants to make a car. Fiat already makes cars. Therefore, Apple and Fiat should partner to make an Apple Car. Makes sense, right? Clearly, it's not quite that easy, but FCA chief Sergio Marchionne hopes that Cupertino will consider Fiat a worthy candidate for partnership, assuming, of course, that Apple follows through with its overtures into the automobile industry. Marchionne is, according to Bloomberg, a self-proclaimed "Apple freak" who owns every kind of product Apple makes. He suggests that he understands the tech company's needs and wants. "Apple has a language, and you have to be able to speak that language," said Marchionne. "Usually the industry comes into that dialogue with a high degree of arrogance as we know how to make cars. That's not very helpful as their syntax is worth more than our ability to build cars." By "syntax," we assume Marchionne means Apple's sleek and modern design language more than the code behind its software. It's interesting to note that the FCA CEO seems to indicate that Apple would bring more to any partnership than the automaker would. Fair or not, we'd wager that more buyers would care about a potential Apple Car's design and branding than would be concerned with which automaker helped assembled it. A partnership with Apple may be exactly the kind of cure that the FCA CEO believes ails the auto industry. After finding it impossible to further pursue industry consolidation, a tie-up with the massive tech industry, particularly Apple, could generate some much-needed positive cash flow. At present, though, it's all just conjecture – Apple hasn't offered any hints as to the true nature of its so-called Project Titan automotive project, and doesn't seem likely to anytime soon. Related Video:

Fiat is quitting the minicar segment it dominates

Fiat plans to exit the minicar segment its global empire is built on. Strict safety and emissions regulations looming over the European new car market will soon make developing pocket-sized models prohibitively expensive, so the Italian firm will shift its attention to the next segment up. "In the very near future, you will see us refocus on this higher-volume, higher-margin segment, and that will involve a move away from the minicar segment," announced Fiat Chrysler Automobiles (FCA) boss Mike Manley during a recent conference call with analysts. He didn't provide a specific time frame, but industry trade journal Automotive News speculated the move will happen by 2024. The 500 and the Panda, Fiat's entries in the segment, continue to sell relatively well in spite of their age. The 12-year old 500 was the 16th best-selling car in Europe in 2018; the eight-year old Panda finished in 20th position, but it led the Italian sales chart by a significant margin. Fiat already announced the next-generation 500 -- which likely won't be sold in the United States -- will only be offered with an electric powertrain, but the current car is expected to remain in production for as long as possible. The Panda's future is murkier; the 2019 Centoventi concept hinted at an electric replacement, but Manley's statement seemingly suggests Fiat shifted the project to the back burner. The next-generation 500 will make its debut at the 2020 Geneva auto show and go on sale shortly after. While the model will live on as an electric car, Fiat will focus on slightly bigger subcompact cars that enjoy thicker profit margins, like the Renault Clio and the Volkswagen Polo, Europe's second and third best-sellers (behind the Golf) in 2018. The Italian firm left the segment when it deep-sixed the Punto in 2018; it's now looking for a way back in. The on-going tie-up with Paris-based PSA Group would give it access to the new platform found under the Peugeot 208 and the Opel Corsa. It was developed with gasoline-, diesel-, and electric-powered drivetrains in mind. Fiat's rivals on the European market have recently come to a similar conclusion. The Ford Ka+ and the Opel/Vauxhall Karl retired earlier than expected, decisions partly blamed on sluggish sales, and Volkswagen will allegedly drop the gasoline-powered variant of the Up! to focus on the electric model. Smart's ForTwo and ForFour have gone electric-only.