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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:

FCA revises Renault merger offer in a bid to persuade French government

PARIS – Fiat Chrysler is discussing a Renault special dividend and stronger job guarantees in a bid to persuade the French government to back its proposed merger between the carmakers, sources close to the discussions said. The improved offer, if formalized and accepted, would also see the combined company's operations headquartered in France and the French state granted a seat on its board, two people with knowledge of the matter told Reuters on Sunday. FCA spokeswoman Shawn Morgan declined to comment. The French government, Renault's biggest shareholder with a 15 percent stake, also declined to comment. A Renault spokesman did not return calls and messages seeking comment. Italian-American FCA is engaged in intensive discussions with Renault and the French government over the $35 billion merger proposal it pitched last Monday to create the world's third-biggest carmaker. The concessions being discussed are not definitive and depend on other aspects of an emerging compromise deal, both sources cautioned. They nonetheless increase the chances that the merger plan will be approved by Renault's board, on which the French state has two seats. The board meets again on Tuesday. Some analysts and French industry leaders had voiced doubts about the 5 billion euros ($5.6 billion) in claimed cost and investment savings, and whether the proposal represents a fair deal for Renault shareholders. A Renault dividend would improve the valuation in their favor, balancing a 2.5 billion euro proposed dividend to FCA shareholders. The sources did not elaborate on the potential size of a Renault payout. The merger plan presented on Monday would see the two carmakers acquired by a listed Dutch holding company whose ownership would be split equally between current FCA and Renault shareholders, after special dividend payments. FCA had proposed locating the combined group's operational head office in a neutral city, most likely London, but has now indicated readiness to base it in the greater Paris area, meeting a key French government demand, both sources said. The French government is also likely to be granted a seat on the board to reflect its 7.5 percent stake in the merged company, the people said. Nissan, whose matching 15 percent stake in its French alliance partner will also be diluted to 7.5 percent of the new group, receives a board seat under the plan unveiled on May 27.

Fiat Chrysler, surprise, had to buy a lot of emissions credits

The world of carbon emissions uses some unusual units of measure. Take, for example, 8.2 million megagrams. Who needs to know how much that is? Someone at Fiat Chrysler Automobiles, that's who. FCA had to buy that many greenhouse-gas emissions credits from greener automakers, Reuters says, citing a report from the US Environmental Protection Agency (EPA). Because its vehicles' collective fuel economy continues to trail the industry average, FCA purchased the emissions credits at of the end of 2014 in order to meet US emissions regulations. About two-thirds of those credits were acquired from Toyota, while the rest were purchased from Tesla and Honda. Daimler and Ferrari, not surprisingly, were among the other automobile companies that had to acquire emissions credits in order to meet US greenhouse gas regulations. Because the price for these credits is set privately by the companies, the EPA didn't disclose how much FCA had to pay to stay on the green side. The reason for the millions FCA likely spent is because the company is making a slow progress building and selling cleaner cars. The company did increase average fuel efficiency by about one mile per gallon to almost 22 mpg for the 2015 model year, but it wasn't enough. Such a performance likely only put the automaker in a last-place tie with General Motors. The emissions credits purchased from Tesla are notable because that California-based maker of electric vehicles has long generated substantial revenue by selling various credits to its less-electrified counterparts. In 2013, Tesla sold more of California's ZEV credits than any other automaker, but Nissan took that title in 2014. While these are not the same as the EPA's GHG credits, they do offer another way to track which automakers are meeting the targets and which need help. Related Video: News Source: ReutersImage Credit: Flickr/Ian YVR Government/Legal Green Chrysler Fiat Fuel Efficiency mpg