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Chrysler purchases remaining shares from VEBA Trust, announces funding plan

It's official: The Detroit Three is now The Detroit Two and The Fiat Subsidiary, Chrysler. Both the Italian carmaker and The Pentastar announced the completion of cash payments and a Memorandum of Understanding (MOU) on future payments necessary to make the Chrysler Group a wholly-owned subsidiary of Fiat. As previously detailed, Chrysler made a cash payment of $1.9 billion and Fiat North America made a cash payment of $1.75 billion to the Voluntary Employment Benefit Association (VEBA) run by the United Auto Workers union.
On top of that, Chrysler Group signed an MOU that agrees to payments of $700 million to the VEBA in four installments, the first of which was made concurrently with the other cash payments. And for you trivia mavens, the full name of the UAW is the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. So go impress your loved ones with that nugget after you check out the press release below.

Fiat Chrysler and Peugeot boards meet to finalize merger

MILAN/PARIS — The boards of Fiat Chrysler Automobiles and Peugeot will meet separately on Tuesday to discuss finalizing an initial agreement for a $50 billion merger to create the world's number four carmaker, sources said. A source close to FCA said the two companies could announce the signing of a binding memorandum early on Wednesday, followed by a conference call to explain further details later in the day. The two mid-sized carmakers announced plans six weeks ago for a tie-up to help them deal with big challenges in the industry, including a global demand downturn and the need to develop costly cleaner cars to meet looming anti-pollution rules. Ahead of the meetings, entities representing the Peugeot family, Etablissements Peugeot Freres (EPF) and FFP, unanimously approved a proposed memorandum of understanding for the planned merger, a source familiar with the situation said. FCA and PSA have said they would seek to finalize a deal by year-end to create a group with 8.7 million in annual vehicle sales. That would put it fourth globally behind Volkswagen, Toyota and the Renault-Nissan alliance. PSA's Carlos Tavares will be chief executive and FCA's John Elkann — the scion of Italy's Agnelli family, which controls FCA through their holding company Exor — chairman of the combined company. The group will include the Fiat, Jeep, Dodge, Ram, Chrysler, Alfa Romeo, Maserati, Peugeot, DS, Opel and Vauxhall brands, allowing it to serve mass and premium passenger car markets as well as those for trucks and light commercial vehicles. Related Video:       Chrysler Dodge Fiat Jeep RAM Citroen Peugeot

Ford, Chrysler and Mazda expand scope of Takata airbag recalls

The scope of the Takata airbag inflator recall is ballooning once again across the United States. Where Honda has elected to take its driver-side airbag campaign nationwide, Chrysler Group and Ford have now announced expanded regional actions to cover some passenger-side airbag inflators. Mazda is adding more regions, as well. For Chrysler Group, the campaign covers the inflators on 149,150 examples of the 2003-model-year Ram 1500, 2500 and 3500 pickups. The recall is limited to vehicles sold or ever registered in Alabama, Florida, Georgia, Hawaii, Louisiana, Mississippi, Texas and the territories of American Samoa, Guam, Puerto Rico, Saipan, and the Virgin Islands. The company will begin notifying affected customers on January 19. According to Chrysler's announcement of the action, the passenger side inflators in these trucks "are of a type that is not used in any of the other vehicles affected by Chrysler Group's regional field action." The automaker says that it's not aware of any actual failures or accidents in these pickups and even claims there are no "observed failures in laboratory testing of its airbag modules." The company is continuing to study the problem, though. Ford is taking a similar step by issuing a recall of inflators for 38,500 examples of the 2004-2005 Ranger and 2005-2006 Ford GT. The campaign only affects vehicles originally sold or ever registered in Florida, Hawaii, Puerto Rico and the US Virgin Islands. Certain zip codes of Georgia, Alabama, Mississippi, Louisiana, Texas, Guam, Saipan and American Samoa are also covered. There's already precedent for passenger-side airbags to be covered under the Takata inflator recall. When many automakers announced campaigns in June, BMW, Chrysler, Ford, Honda, Mazda, Nissan and Toyota all included that side in some of their repairs. Subaru subsequently did, as well. In addition, Mazda is expanding the scope of its recall to add Florida, Puerto Rico, Hawaii, Saipan, Guam, American Samoa, US Virgin Islands, Georgia, Alabama, Louisiana, Mississippi and Texas to the affected areas. The company estimates that it has a total of 86,773 vehicles in need of repair. Mazda is also teaming with Toyota to begin independent testing of the Takata inflators. Scroll down to read all of the automakers' announcements of these newly expanded recalls. Statement: Air-Bag Inflators December 3, 2014 , Auburn Hills, Mich.