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Could Chrysler leave Michigan for Tennessee?

Detroit's Big Three could become the Big Two. According to an AP report in The Detroit News, state officials have been lobbying for Fiat-Chrysler CEO Sergio Marchionne to select Tennessee as the location for Fiat's joint headquarters with Chrysler Group LLC.
This weekend, Marchionne met with Tennessee governor Bill Haslam at a ceremony celebrating the expansion of a Fiat subsidiary plant in the city of Pulaski. The AP report does not mention any serious talks about headquarters relocation, only that Tennessee officials have been "working me over pretty well," according to Marchionne.
Fiat hopes to complete its merger with the Auburn Hills-based automaker sometime next year, and earlier reports have stated that the company is seeking $10 billion in financing to buy the remaining bits of Chrysler. If the company were to relocate, it would join Nissan and Volkswagen in having major American automotive operations in Tennessee. Of course, that whole "Imported From Detroit" thing would need to go out the window, as well.

Worker crushed to death at FCA's Jefferson North Assembly Plant [UPDATE]

Tragedy has struck a Fiat Chrysler factory. According to emerging reports, a worker was killed at the Jefferson North Assembly Plant early this morning in Detroit. The incident reportedly occurred in the waste water treatment facility at the plant, just after 7 a.m. this morning. The 53-year-old worker, whose name has not yet been released, is said to have been crushed in a press and was pronounced dead at the scene. The incident is currently under investigation to determine the exact circumstances. Jefferson North is where FCA assembles the Jeep Grand Cherokee and Dodge Durango. The plant is located on Conner Street near East Jefferson Avenue in Detroit. We've reached out to FCA US for the official statement, and will update you as soon as more details are available. Our condolences go out to the late worker's family and friends. UPDATE: Official statement from FCA added below. FCA US has had a tragic accident at its Jefferson North Assembly Plant during the first shift this morning. A plant employee died at the waste water treatment plant. The Company is currently working with local officials to investigate the incident. The name of the employee is not being released at this time. All of the FCA family extends its deepest sympathies to the employee's family during this difficult time.

Sergio: Two-tier wage structure eliminated in FCA deal with UAW [w/video]

The two-tiered wage structure that governs the way domestic car companies pay their unionized employees – and rankles many of them in the process – could soon be a thing of the past. In a tentative deal seen as a bellwether for other ongoing negotiations, the United Auto Works and Fiat Chrysler Automobiles reached a tentative agreement on a four-year contract that would disband the two-tier structure, in which some workers earn higher hourly wages for performing the same job, over time. Officials who announced the tentative agreement late Tuesday in Detroit were short on details of its contents and union members still must ratify it. But FCA CEO Sergio Marchionne said the two-tiered structure will disband by the end of the contract. "The team has crafted together a very thoughtful process, where the issue will go away, go away over time," he said. Further details weren't divulged. Union negotiations with Ford and General Motors are ongoing, so hammering together a deal that sheds the two-tier structure with Chrysler first could set a precedent followed by the other members of Detroit's Big Three automakers. Other key issues that emerged in negotiations with FCA included escalating health-care costs and rewarding workers for the health of the auto industry. But dealing with the two-tier structure, born as GM and Chrysler circled bankruptcy during the Great Recession, was something the UAW wanted to confront. "The UAW has a philosophy about the economic balance of this country and the inequality, and our mission is to bridge the gap in this country," UAW president Dennis Williams said. "It's gotten out of whack. ... We don't want to share anything, and I truly believe that corporations that have that set of mind have lost their way." The UAW's executive board was expected to review the tentative agreement this morning before a union membership vote is scheduled. For Marchionne, who skipped the Frankfurt Motor Show to shepherd the negotiations during their final hours, the tentative agreement means he can shift his concern back toward pushing an FCA merger with General Motors or another company and touting the idea of industry consolidation in general. "The other side of this is capital usage in this business, which is something that remains unsolved," he said. "It makes the labor side sort of pale in comparison, given the magnitude of the potential synergies and benefits we'd be deriving from an intelligent approach.