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Fiat Chrysler UAW corruption had roots in federal bailout of Chrysler

The Detroit News continues its dogged coverage of the federal investigation into corruption at the United Auto Workers union and Fiat Chrysler in a lengthy in-depth report that ties the investigation together with Chrysler’s emergence from bankruptcy protection in 2009, a hefty federal bailout and former CEO Sergio MarchionneÂ’s push to force a merger with crosstown rival General Motors. ItÂ’s a staggering look at the brazen illegal payoffs, kickbacks and embezzlement in the top ranks of both Fiat Chrysler and the UAW, an investigation which has so far resulted in 11 criminal convictions — three of them former FCA employees, the rest former UAW leaders — with at least seven others implicated in wrongdoing to date, including former UAW President Gary Jones, who recently resigned. Prosecutors allege all of it was fueled by $12.5 billion in taxpayer-funded bailout funds within days of Chrysler LLCÂ’s emergence from Chapter 11 bankruptcy protection in June 2009. The News reports that former FCA Vice President Alphons Iacobelli, then its top labor negotiator, admitted to opening the spigot that same month. HeÂ’s now serving 66 months in prison, according to the U.S. Attorney Office in Detroit. All told, Iacobelli and FCA made more than $9 million in illegal payments over eight years to the UAW to cover salaries and benefits, many of them for "no-show" jobs at the joint UAW-FCA training center in Detroit, which is being dissolved. WhatÂ’s more, prosecutors say that Iacobelli answered on UAW matters solely to Marchionne, who died in a Swiss hospital in 2018. Marchionne was never charged with any wrongdoing, even though investigators reportedly caught him lying about providing gifts to UAW leaders during a meeting at the U.S. AttorneyÂ’s Office in Detroit in 2016. The story also details how prosecutors believe he tried to buy the support of UAW leaders for his repeated bids to get GM to agree to a merger, despite widespread belief that such a move would have led to massive job cuts and plant closures, given the two automakersÂ’ many overlapping products. The whole Detroit News story is highly worth a read. Find it here. Read This UAW/Unions Chrysler Fiat GM Sergio Marchionne FCA

FCA names Mike Manley head of Ram brand

Sergio Marchionne seems to revel in shifting the numerous portfolios of the senior executives who work under him. Case in point: the latest round of hat-swapping announced by Fiat Chrysler Automobiles. Several appointments have been made at the top levels of the group, chief among them a new head of the Ram truck brand. That role will now fall to Mike Manley, who will also retain his responsibilities for the Jeep brand and as COO for the Asia-Pacific region. With his hands busy enough as it is, we'd imagine that much of the day-to-day will fall to Robert Hegbloom. He had Manley's new job until now – but will still remain head of the Ram brand for North America, where the bulk of its business is conducted. Along with the shift in leadership for the Ram brand, FCA also named Reid Bigland as head of fleet operations for North America. Bigland is also responsible for sales in the same region, and for the Alfa Romeo brand here as well. The company also named Tim Kuniskis to the Group Executive Council, charged with overseeing all the passenger-car brands in North America – including Dodge, Chrysler, and Fiat. While it was at it, FCA also named Al Gardner as head of network development for North America, and Jason Stoicevich as Bigland's deputy for US fleet and small-business sales. All these appointments take effect immediately. FCA US ANNOUNCES LEADERSHIP CHANGES October 5, 2015 , Auburn Hills, Mich. - FCA US today announced several leadership team moves in support of changes at the Fiat Chrysler Automobiles N.V. (FCA) Group Executive Council (GEC) level. The moves were made to ensure proper representation of all of FCA's major brands on the GEC, the highest management level decision making body within the FCA organization. Earlier today, the following moves were announced at the GEC level. - Mike Manley is appointed Head of Ram Brand. Manley will retain his current GEC responsibilities as APAC Chief Operating Officer and Head of Jeep Brand. - Reid Bigland is appointed Head of NAFTA Fleet. Bigland will continue his current GEC responsibility for NAFTA Sales & Alfa Romeo. - Timothy Kuniskis becomes a member of the GEC and assumes responsibility for NAFTA Passenger Car Brands, consisting of Dodge and SRT, Chrysler and FIAT. In addition, the following appointments were made to the North American leadership team. - Robert Hegbloom continues as Head of Ram Brand for North America, now reporting to Manley.

Chrysler recalling nearly half a million vehicles with active head restraints

Chrysler has announced that it will recall roughly 490,000 vehicles around the globe due to a potential active head-restraint problem. The problem is being blamed on "potentially faulty microcontrollers" that may keep the vehicles' anti-whiplash active safety feature from working properly. Chrysler says it has no knowledge of any accidents or injuries related to the issue. Models covered under the recall include the 2011-2013 Chrysler Sebring, 200 (shown) and Dodge Avenger models, along with 2011-2013 Jeep Liberty and 2011-2012 Dodge Nitro SUVs.
Interestingly, the Pentastar notes that the faulty part came from an (unnamed) supplier who furnished the parts in the wake of Japan's 2011 earthquake and tsunami, natural disasters which decimated the world's supply of microcontrollers.
Chrysler says of those nearly half a million vehicles affected, around 442,000 of them reside in the US, with an additional 25,000 in Canada and 10,000 units in Mexico. A further 12,000 models were shipped beyond the NAFTA region. The Auburn Hills automaker will begin sending out recall notices shortly, and technicians will upgrade the system software or replace the microcontroller as necessary at no cost to owners.