1956 Chrysler New Yorker With Hemi Engine! on 2040-cars

Auto blog

Here's what the UAW will be angling for in next year's contract negotiations

The United Auto Workers union is about to enter a new round of negotiations with the Detroit Three automakers, and this time, the focus is on the end of the two-tier wage system. Introduced in 2007, the two-tier wage system was enacted to allow General Motors, Ford and Chrysler to categorize its hourly employees under two categories: Tier 1 for veteran employees with full rights and benefits, and Tier 2 for short-term or entry-level employees compensated under a different schedule. The idea was that the system would permit the automakers to invest more in their plants and hire new employees as part of their respective recovery plans without being saddled with all the costs associated with hiring full-time employees. Now that the automakers are (more or less) back on their proverbial feet, however, the UAW wants to see an end to the two-tier system, and will likely make that a center-point of its negotiations next year to replace the current arrangement that is scheduled to end in September 2015. Not all members of the UAW will necessarily be interested in ending the two-tier system, however. According to The Detroit News, some Tier 1 workers may be more interested in negotiating a raise in their hourly rate – something which they haven't received in almost a decade. Tier 2 workers, meanwhile, may be more motivated to keep the tiered system in place, as their arrangement includes provisions for profit-sharing payments that have seen the automakers pay out billions to so-called short-term employees in lump-sum payments. Reconciling the two competing demands from two categories of union members and presenting a united front in negotiations may prove the biggest challenge for the UAW's new president, Dennis Williams. And with the right to strike – something which was suspended during the last round of negotiations in 2011 – the union has a bigger bargaining chip in its pocket.

Is it time for American carmakers to give up on dual-clutch transmissions? [w/poll]

Last week, in the midst of Detroit's first days seeking relief in Chapter 9 of the bankruptcy code, Automotive News contributor Larry P. Vellequette penned an editorial suggesting that American car companies raise the white flag on dual clutch transmissions and give up on trying to persuade Americans to buy cars fitted with them. Why? Because, Vellequette says, like CVT transmissions, they "just don't sound right or feel right to American drivers." (Note: In the article, it's not clear if Vellequette is arguing against wet-clutch and dry-clutch DCTs or just dry-clutch DCTs, which is what Ford and Chrysler use.) The article goes on to state that Ford and Chrysler have experimented with DCTs and that both consumers and the automotive press haven't exactly given them glowing reviews, despite their quicker shifts and increased fuel efficiency potential compared to torque-converter automatic transmissions.
Autoblog staffers who weighed in on the relevance of DCTs in American cars generally disagreed with the blanket nature of Vellequette's statement that they don't sound or feel right, but admit that their lack of refinement compared to traditional automatics can be an issue for consumers. That's particularly true in workaday cars like the Ford Focus and Dodge Dart, both of which have come in for criticism in reviews and owner surveys. From where we sit, the higher-performance orientation of such transmissions doesn't always meld as well with the marching orders of everyday commuters (particularly if drivers haven't been educated as to the transmission's benefits and tradeoffs), and in models not fitted with paddle shifters, it's particularly hard for drivers to use a DCT to its best advantage.
Finally, we also note that DCT tuning is very much an evolving science. For instance, Autoblog editors who objected to dual-clutch tuning in the Dart have more recently found the technology agreeable in the Fiat 500L. Practice makes perfect - or at least more acceptable.

Ferrari to be spun off from Fiat Chrysler

The recently merged Fiat Chrysler Automobiles empire has ambitious plans for growth, and it's going to need some big bucks in its coffers in order to enact them. Part of that cash injection is coming from the floating of its IPO on the New York Stock Exchange, but now FCA has announced a further capital campaign to be based on the enormous asset that is Ferrari.
FCA's board of directors has just approved the separation of Ferrari from the rest of the group as a separate entity. Once that separation is complete, Ferrari will put 10 percent of its shares on the stock market "in the United States and possibly a European exchange" as well.
This isn't the first time that the idea of a Ferrari IPO has been raised. Sergio Marchionne, chief executive of Chrysler, Fiat and Ferrari (pictured above), first raised the idea four years ago. Former Ferrari chairman Luca di Montezemolo nixed the idea, but now that he's been discharged, it appears there's nothing to get in the way of Marchionne's desires.